Sunday, June 21, 2009

Smaller Business, Bigger Profit

By Chuck R Stewart

The economy today is struggling and many people are losing their jobs in America. A lot of people have been forced to reconsider how they should make a living after being out of work.

Some are going back to school or learning a new technical trade to market themselves in. Others are pondering whether they should follow their passion and create their own business where they can be in charge of how they do and be their own boss.

Even though retail businesses are down on the average about 20% from last year's sales, some smaller businesses are thriving and having a great success in this troubled economy.

This article will touch on a few of the business industries that are succeeding like artistic jewelers that find a niche market such as making horse jewelry or star jewelry or making items specific to marathon runners and triathletes. These smaller niches continue to thrive today.

The smaller businesses that do not succeed and have gone out of business due so for a variety of reasons. One reason is that they chose the wrong location for their business where the need for their particular item was not important and therefore they fell by the wayside.

Another reason small companies may fail is that they try to sell something that is sold by several other larger companies that have greater marketing, advertising and lower prices.

A great example of this is the old Mom and Pop bookstore that has struggled to compete with the huge Barnes and Noble and Borders Bookstores.

Their small size and marketing funds just can not compete with these huge stores that are selling the same products.

The key to succeeding whether it is in a store or just an online internet store is to find a special niche that will appeal to a smaller group yet one that continues to look for products within that niche.

A great example of this niche market is the area sports. That group of people continues to grow every year as people are choosing to become more active for their health and are finding the great benefits to participating.

Whether it is a marathon race or an equestrian event, many vendors attend these events to appeal to those participating. Often in their area, there is not a store that may contain special horse themed gifts or clothing specific to racing in a triathlon.

At these events, the vendors can sell to this specific niche and also let the participants know how they can purchase more items for the future, typically online.

People that are passionate about their hobby or sport want to have everything regarding that passion. Many people now see cars driving around with a equestrian sticker or a 26.2 sticker letting others know that they are a horse jumper or have completed a marathon.

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