Let’s face it – we’re living in a more interconnected world each day. While this is fantastic for increases in exchanging of ideas, experiences and learning, there is a dark side.
I’ve often said life is about tradeoffs: Buying a bigger, more comfortable house and paying more for it, vs. buying a smaller, less expensive, cramped house that leaves you fighting amongst others for space; Taking your bike to work to save on gas and getting caught in the rain only to be miserable and cold the entire ride home; Getting lunch out of the vending machine at work to save time only to get a stomach ache later vs. having a delicious 7-Layer Burrito from Taco Bell. No matter the situation, you will end up miserable. Unless you got the 7-Layer Burrito, which is sure to give you complete happiness.
So now you’re probably thinking “Ok, where is this burrito-loving, Negative Nancy going with all of this?” Chill man! I’m coming up on a point here.
The tradeoff with business is trying to be everything to everyone. There comes a point where you need to say NO to a market. While it was much easier back in the 1960′s to be a jack of all trades type of business, this day in age is much different. Back then, you may have had the only business in town, which gave your customer base few to no options. Today, with global sourcing ability to be had within a couple clicks, you’ve got a completely different landscape for commerce.
As the world gets more and more interconnected, the lines are getting more and more blurry. This is great for consumers. It gives people more options than they ever imagined. Because of all the options, the market becomes inundated, and suddenly a product drops in price to a faction of the cost it may have been to manufacture even a year ago. This is also great for a consumer. But where does that leave business?
You’d think that businesses would have to cut costs so much to stay competitive it would be hard for them to even afford employees. And as we saw from the economic downturn a few years ago, where EVERYTHING fell out, businesses are stretched to the max to maintain that ever-shrinking margin.
Fortunately for many industries, advancements in technology have countered the competition some. Those not upgrading technology fall in the abyss and disappear into history. But the best businesses find ways to focus.
Focus? Like the car, you ask? Actually yeah – the Ford Focus is a great example. The Ford Focus was a car that consolidated a few other regional models like the Escort and Festiva so they could produce one model for the global market. This probably isn’t the best example, but I used it anyway because the name fit for this lovely expository. Now that I think of it, this example actually opposes of the point I am trying to make. Scratch that. Moving on…
Focusing into niche businesses. We’ve seen it already – as competition for the broad audience becomes harder and harder, the products also get more and more watered down because they NEED to appeal to everybody. This leaves the door wide open for businesses that want to became the absolute best at a certain style of product.
And that is just the beginning. Once we have niche products, then we’ll get even more and more niche style niche products, as consumers set course for something that is ever more unique and fits their personal style like never before.
An example of this progression would be the skateboard. This used to be a niche product for urban dwellers. Today you can pick up a basic skateboard anywhere. As the dwellers become daredevils, the options have grown immensely. There used to be one style. Now we even have a sub-niche market – longboards. The buyers in this market are different and more unique.
And when you’re in that niche, you can make all decisions because you’re the market leader. You’ll define norms. You have the opportunity to create objects that are tailored for unique individuals.
This is how I think the future of business will be. Skills will be becoming more and more specialized to produce products for a super small segment of the market that buys.
Pictured Above: Another niche style product, Vurtego Pogo Sticks.
So what are the nuances that make your business unique and unlike any others? This is what you need to promote. Start honing your skills to fill these areas. Stop trying to say you do it all. Jack-of-all-trades-and-masters-of-none will find the way of the dodo bird. Focus, focus, focus on what you love to do, and the rest will become easy!