Business owners need to consider the relationship between a niche and the marketing effort. A point that needs to be considered is how defining a niche will help with marketing, sales, and public relations efforts. It should be mentioned that everything in business is easier when you have a well-defined niche. For instance your current customers will be more likely to refer you to people who have the same problem they had. Your marketing and public relation campaign will have a natural, sharp focus. Your sales staff can deal in the specific, rather than the obscure, and they will waste less time on general prospects opting instead to target much more likely clients.

Businesses can be successful without having niches:

A number of people will argue that there are businesses that seem to be successful and yet don't have just one niche area. A case in point here is British Homes Store (department store) that provides a wide range of products. My answer to those people is that companies can be incredibly lucky to start out with because of having an appropriate position, good contacts or because they become fashionable. However in the majority of cases I believe being a generalist is not a plan that will sustain long-term business growth because they never create an identity that can sustain them. Not having a well-defined target market is like having a ship without a captain. Though many business people seem to realise all this, few act on it. This is because they think they already have an identity. In their minds they know perfectly well what they're doing and they don't realise their customers aren't picking up on it. In the past the case of British Homes Store was a good example because the concept recently is not working due to the fact that customers prefer specialised retailers. This has occurred despite the fact that it is recognised that BHS offers value for money.

The question that may be asked by generalists is how they should remedy the situation. I personally would recommend that they obtain data from their current customers through a questionnaire. The firm should ask them anonymously to answer what they believe are the firm?s strengths and weaknesses. It is important to question them on the reasons why they chose the firm over others and what they tell people when they refer the firm. A well-designed questionnaire can pinpoint the areas where the business owner is not in harmony with his customers.

I believe that business owners should talk to their customers on a regular basis and should not be isolated from them. They need to identify their needs, get to know them and do some careful listening. Though I accept it is impossible to meet all the needs of the customer, the owner should at least know what they are looking for. A golden rule is to focus on your ideal customers and their needs. What every customer wants and needs should not sidetrack the business. This is because it can't be all things to all people. In my opinion the best efforts need to be carried out on the firm?s largest, most loyal and long-time customers.

The final point to be considered is how the typical overworked and undercapitalised business owner find time to do all of this. The golden rule is they have to make time. Planning seems to take time away from running your business but if you spend at least a few hours a month then the businessperson will save lots of hours and thousands of pounds every quarter because they will be focusing their time and their money on ideal customers.

In my opinion people put off planning because they are responding to problems and they don't think they have time to think of a strategy. But they need to guide their business where they want it to go instead of letting it get out of control and then trying to catch up to it.

Conclusion:

With Cyprus getting ever closer to EU membership, we are nearing the point when we are entering a new business environment when our European operators are lean and focused (specialised) operations. I believe that those Cypriot companies that will survive will be highly focused companies with a niche. To give an example I believe there are good prospects for professional run firms that export halloumi (a specialist cheese) rather than a firm that produces all types of shoes. Hence it is important for Cypriot businesses to concentrate on what they are good at rather than to be a jack-of-all-trades since the later is a strategy that may not pay in the long run.

Andy George is a qualified chartered accountant who was born in Birmingham, England and who has had many years? experience in public practice, industry, and commerce and as a lecturer. Since 1991 he has been based in the island of Cyprus. Andy was a financial correspondent for eight years at the Cyprus Financial Mirror where he wrote articles on business and accounting related issues to a non-technical audience.

He is the author of eBooks: How to write and Publish Your Own With a Shoestring Budget http://www.budgetebook.com

http://www.easy4tune.com/cbmall

akgeorge@cytanet.com.cy