There
is no more critical time than now for small businesses to discover
their “strategic sweet spot”. Business owners put a considerable amount
of time into evaluating the market, selecting a niche, and developing a
personal or company brand. These are essential to business success. But
the work is not finished until careful analysis has been done to find
what products and services your customers need or want that no one else
is offering. Think
outside of the box when looking for a strategic sweet spot.
Market
and competitive analysis is usually done as part of a business planning
or strategic planning process. Business owners need to know who else is
doing work or selling products similar to theirs. Sometimes the
competition is obvious. A strategic sweet spot gives you a competitive
edge that will strengthen and expand your bottom line.
In the automotive industry, there is also overlap between auto repair shops,“big box” stores, tire stores, and shops offering specialized services (i.e. transmission repair). Knowing your competition is vital as you select services, establish pricing, develop marketing plans, and later consider expansion.
In health care, you can identify the number of hospitals in any given area. However, deeper analysis needs to be done to find the smaller clinics and private offices offering services that compete with those done in a hospital or medical center.
It is vital to develop a strong network to keep abreast of what is happening in your market. You can learn much by maintaining friendships within your industry, listening to new employees or potential recruits, and talking to vendors. All this information should be written down for comparative analysis to create a picture of what is happening in your market.
Knowing your customer is just as important. Regular customer surveys and frequent personal contact will give you opportunity to honestly learn what customers really think about your services. Ask your customers - how well do they like your work or your product, with a view to learning and improving what you offer, and they will share revealing ideas you may have missed.
The most important questions to ask are, “What products or services do you need or want?” Ask your customer for their wish list or how they imagine a perfect world. They might request something impossible, but that dream may also spark in you for an idea for an innovative product or service that no one else is currently offering. You have now discovered your strategic sweet spot. You are in a position to offer something no one else is offering. You will now make your current customers very happy, and they will tell their friends. Presto!
Think outside of the box when looking for a strategic sweet spot. If you start by looking at a market location or certain demographic, then you might shift to looking at specific niches within your industry
Your strategic sweet spot may be something you are currently offering or it might even be a new product or service you have yet to develop. Nonetheless, a strategic sweet spot gives you a competitive edge that will strengthen and expand your bottom line.
In the automotive industry, there is also overlap between auto repair shops,“big box” stores, tire stores, and shops offering specialized services (i.e. transmission repair). Knowing your competition is vital as you select services, establish pricing, develop marketing plans, and later consider expansion.
In health care, you can identify the number of hospitals in any given area. However, deeper analysis needs to be done to find the smaller clinics and private offices offering services that compete with those done in a hospital or medical center.
It is vital to develop a strong network to keep abreast of what is happening in your market. You can learn much by maintaining friendships within your industry, listening to new employees or potential recruits, and talking to vendors. All this information should be written down for comparative analysis to create a picture of what is happening in your market.
Knowing your customer is just as important. Regular customer surveys and frequent personal contact will give you opportunity to honestly learn what customers really think about your services. Ask your customers - how well do they like your work or your product, with a view to learning and improving what you offer, and they will share revealing ideas you may have missed.
The most important questions to ask are, “What products or services do you need or want?” Ask your customer for their wish list or how they imagine a perfect world. They might request something impossible, but that dream may also spark in you for an idea for an innovative product or service that no one else is currently offering. You have now discovered your strategic sweet spot. You are in a position to offer something no one else is offering. You will now make your current customers very happy, and they will tell their friends. Presto!
Think outside of the box when looking for a strategic sweet spot. If you start by looking at a market location or certain demographic, then you might shift to looking at specific niches within your industry
Your strategic sweet spot may be something you are currently offering or it might even be a new product or service you have yet to develop. Nonetheless, a strategic sweet spot gives you a competitive edge that will strengthen and expand your bottom line.
Lisa Van Allen, PhD, ACC is the Conscious Business Coach who helps small business owners and entrepreneurs blend Purpose and Passion with Profit.