Business Sphere

Why do many businesses fail?

     A recent survey reveals that 80% of new businesses fail, while 50% of the existing business enterprises experience trouble every year.

     Well, the result of the survey is not surprising at all, because this statistics has been the perennial findings of many surveys even in the past.

     One major factor that caused business collapse, as identified by the survey, is lack of market focus, or the inability of the owner to know his target market. This lack of market focus often results to poor business sales, which leads to losses and failure.

     It is a truism that without a market, there is no business. This principle cannot be over-emphasized, and I have been repeating this in my other previous posts. And in every market, there is always the competition-competitors who will always pounce on you at every opportunity to wrestle your sales, your customers, your income. Competition is given, it is a fact of life.

     Thus, without knowing your market, your business will simply wither and eventually die. A good business person must not go into business without knowing what and who his markets are.

     The question now is: What must be done to achieve market focus, so that your business is market-driven, and for you to stay competitive?

     One tested strategy is to find your niche in the market. This means to do “niching”.

     Niching is a marketing strategy by which you concentrate on identifying and serving the needs and preferences of a specific market segment, or a group of customers in your market.

     Niching can be done by asking yourself the following two basic questions:

     1. Who are the buyers or clientele that need my products or services?  Are they the seniors or older people, or the middle-age people, the teenagers, or children?

     2. Why do my clientele or buyers need my products or services? 

     Knowing the answers to these questions will enable the business owner to tailor-fit his marketing and promotion strategy to satisfy the specific and unique needs and wants of his niche. This is because each group has their own specific needs and preferences that are different from the other groups.

     Once the owner finds his place in the market, which is his niche, he can now defend and maintain his position by serving very well his clientele, even in the presence of the many competitors.

      So, finding your market niche is one best way to survive and attain business success-which is measured by market share, growth and profit.