Should I remain in Niche Business? I was asked this question recently.
It’s a classic question of each company that operates in niche faces. I have owned a business last eight years which operates in a niche field of TV Advertising, and I have faced this question thousands times myself. I guess the answer to this question is in finding the advantages of operating in a niche and the disadvantages of getting into the mainstream.
The most significant advantage of being in a Niche is that one has no competition, and hence, one can command a price. Price delivers a higher profit margin and a unique identity with less work. You become a specialist in what you do.
However, being in the mainstream, you will have to be competitive with hundreds of other businesses. You will need a higher number of jobs to earn similar money. It will bring more work, more people and more overheads but lesser profit margins. So, in other words, you may have to work harder to earn similar money. You will get diverted from your core niche business, and if the same continues, you may lose niche position you have created for yourself.
My advice focus on your niche segment. Anyways you are fresh in business, and hence you have a long way to go before you hit a saturation point. When everyone walking north, walking towards the south is not everyone cups of tea; people with strong faith and beliefs can do so and often discover new worlds/ horizon. So if you strongly feel that niche which you have created has enough potential for you to harvest, then keep walking south.
This blog post is resultant of the question which I was asked on Quora: