With nearly a million new business start-ups each year and only about half surviving into their fifth year, how do you tell the winners from the losers?
One answer: Look for niche businesses, like financial planning for baby boomers or technology security consulting.
Niche firms like these are the firms which offer a product or service focusing on one specific aspect or customer base within an industry. They have, according to Entrepreneur magazine, a 25% better chance of surviving over 10 years than general types of companies. And they don?t just survive — they are growing at a rate of 20-25% per year.
Who are they?
Some popular niche businesses:
— eBay Drop off sites
— Kids plus-size clothes
— Search engine optimization
— Performance apparel
— Financial planning targeted to baby boomers
— Hispanic marketing
— Technology security consulting
— Wine businesses
— Staffing services
— Niche health and fitness
Source: Entrepreneur.com
Consultants at Warrilow advise marketers looking to capture niche small businesses to narrow their focus. “Look deeper into your mailing lists ? target based on 6 or 8 digit SIC codes… In addition, highly industry specific print and Web resources tend to have lower placement costs, offsetting the customization required.”