ESSAY 1

Essay 1

Essay 1

Challenges of Starting a New Business

acquiring adequate capital

establishing a customer base and/or name recognition

getting the required permits from the interested governments

Niche

Niche product is a product that is made and marketed for use in a small and specialized but profitable market. The examples are:

Crutches

rolls Royce

lobster

Advantage of Niche Company

When companies or individuals invest money in a new venture, they generally want to shoot small with their market positioning or in other words target just one niche segment within their chosen market. Indeed, many companies take comfort in the fact that by striving for a market position that has niche appeal, they'll only need to concentrate their resources in a small area to be successful.

By owning an identifiable market position or niche that may appear to be on the fringes of the market,small firms greatly improve their chances for survival and success. Their offering will be well aligned with the needs of the select few people in the market. This is better than a product/service that is designed to have a wide appeal to everybody, but the competition is so fierce that the new firm is bound to lose.

Why Customers Pay More?

Niche marketing works because niche company target people that are searching more specifically for something -- and these are the people most likely to call or buy from Niche Company. Targeting the highly searched terms may get the company a lot more traffic, but only a small percentage of that traffic will actually call or buy from the niche company.

With targeted traffic, the niche company target the people who are looking for the niche company (whether they know it or not) and the conversion rate is equal to or greater than what the niche company would get for the higher traffic crowd. This process is like a traffic filter because you get the right people looking at your site.

Being a niche focused firm allows us to have a retainer based business model. Instead of billing on a per-project basis with smaller retainer fees - usually maintenance and hosting - the niche company now use a solely retainer-based business model. This regularity means that the niche company turnover and workflow can be correctly estimated month-on-month and the niche company do not suffer - as much - from peaks and troughs, which is very important in today's economic climate.

Niche Player Chips Away

Many entrepreneurs think that selling to the widest possible market ...