Doing Business by the Good Book Ch 6

Finding a Niche

• Focus is Key: No one can serve two masters (Matthew 6:24). Companies need to concentrate on a specific market segment (niche) rather than trying to appeal to everyone. Giant corporations often overlook small niches.

• Finding Your Niche is Smart: Start-ups can successfully target niches that established companies overlook. Analyzing gaps in the market can lead to valuable, unduplicated services. A specific example given is auditing freight invoices for underpayments.

• Specialization is Power: Focus on a particular sector (industry or specific client group). The author's company audited rail road underpayments, not other transportation or industries. This narrow focus was key to providing outstanding service and avoided competing in a broader market. Consistent focus and improvement were crucial to maintain market standing among competitors.

• Deliver Outstanding Service: Committing to consistent improvement is essential to maintain a competitive edge. Focus on one key client for sustained success, and prioritize customer satisfaction. The successful niche company in the example focused initially on a specific client, for whom a great customer service was provided.

• Success Takes Both: Hard work and faith are both essential ingredients to success (James 2:14-17). A niche player needs the same intensity of focus as David against Goliath (1 Samuel 17). David faced overwhelming odds using only a sling & stones to defeat a large formidable opponent.

• Success Stories of Niche Players: Several examples given of historically successful companies, such as General Motors, Federal Express, Wal-Mart, AT&T, MCI, and Microsoft, that started by focusing on a narrow segment. Federal Express found a niche by providing overnight mail delivery. Wal-Mart’s early focus on small-town customers made it a huge successful retailer. A small niche can be a stepping stone to multiple successful ventures

• Obstacles and Strategy: Small businesses must prepare for competition with bigger established businesses that have more resources. The author’s initial approach was to develop confidence in their strength by focusing on their niche area (similar to the biblical David).

• Growth is Gradual: Success usually doesn't happen overnight. Growth should be cautious and methodical. The growth of the company in the example was slow and steady. The example company started with a single client (Union Pacific). It slowly expanded to become a major player and then branching out into other markets and niches.