My column in this week’s Tennessean looks at the ins and outs of niche markets.
Generally, a niche strategy is a good way to enter the market for a new business. It usually takes fewer resources for the startup because of lower marketing costs and the ability to start on a smaller scale.
Success rates tend to be higher for niche businesses since they have less direct competition.
Without much competition, niche businesses often can charge higher prices, which allows for quicker positive cash flow during startup and better margins once the company is profitable.
But, entrepreneurs also should be cautious when picking a niche. Here are some things to consider.
My column offers five key tips for finding success in a niche market.