Business Tip #15 - What's your niche?

I've written about this in the past but it's worth reviewing.

As a business, you need to operationally position yourself as one of three operational niches.

1) Low cost provider

2) Product/Service Innovator

3) High quality product/service provider

Too often, small business owners try to straddle the line between low cost provider and high quality provider. But the two are divergent operational goals.

As a small business owner, you typically do not have the economies of scale to offer the cheapest rates for products and services. In addition, many people are willing to pay a premium for personal service.

What if your just getting going and you find you need to low ball the cost of your product and service to get the work?

Resist the temptation and ask yourself this question. Do I really want these people to be beating me up on price all the time? Because trust me... they will.