Monday, November 21, 2011

What Business Do I Put Up?

My last blog talked about taking the first step when it comes to putting-up your own business. It ventures to ask a couple of questions when you are thinking of venturing on your own.

These questions are:

1. Is there a problem that you can solve?
2. Is there a market for your solution? Do a lot of people experience the same problems or issues?
3. Is it profitable enough for you to make money on?

In answering these questions you must be able to understand the difference between a mass market and a general market. To wit; a mass market is something where a lot of people can benefit from your product or service. The gross margin may not be that high but due to the number of buyers, it will become profitable.

Just think about the generic mp3 players in the market today.

A niche market is a segment of the market which is under-served or not being serviced at all by the other players who are offering solutions or services. The niche market is only a small percentage of the market, however, because of the specialized products or services that you can offer, the profit margins are much higher. Think about Rolex and IWC watches.

Mr. Thomas Fernandez, the author and Mr. Sant Qui
More than a year or so ago, I interviewed two great entrepreneurs from Singapore, Mr. Thomas Fernandez and Sant Qui. They have also authored two books which  have become best-sellers. The first book is about how to differentiate yourself from the rest of the pack which offers the same products and services. The second book talks about how entrepreneurs have applied the niche marketing principle and succeeded.

I will ask you to read their books, Secrets on How to Dominate Your Niche and Success Secrets Exposed to give you a better understanding how to apply their principles on the business you have decided to put-up. Below is just a rundown of their Niche Dominating Secrets:

1. Being a leader
2. Being a specialist
3. Differentiate by pricing
4. Differentiate by design
5. Dominate by polarity positioning