An interesting study by Experian defines a segment of small businesses as "microbusinesses: 25 employees or fewer than $10 million or less in annual sales." They find that 'incorporated business owners have 35% higher incomes; and are 2.62 times more likely to have sales of $5 million or more compared with unincorporateds." The key here is that since 'incorporateds' tend to grow more quickly, it may be wise to create a niche that targets this audience. Don't assume that since it has an 'Inc.' after it's name, that it's a large company.
Niche marketing is crucial; getting it right may be the difference between a hit and a miss. Forget what you think you know about your audience and look with a fresh eye to determine if you are missing a new target segment.
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Simon,
Your comment highlights an important point. When you do niche marketing you must have more than one niche. By definition a niche audience will be narrow, so you need several to make your business strong and secure. You should never have 'all your eggs in one basket.' When you research different niches you should be confident that you have picked a good mix.
Posted by: Stephanie Diamond | September 20, 2006 at 10:15 AM
Thats some interesting data and I'd like to know more about these companies, their age and location.
We all know very well that small business is risky, and if we have lots of small business clients then it puts us in a risky position.
What are your thoughts?
Posted by: Simon Small | September 20, 2006 at 08:18 AM