A sweet spot is a place where a combination of factors results in a maximum response for a given amount of effort. In tennis, squash, racquetball, baseball, or cricket, a given swing will result in a more powerful hit if the ball strikes the racket or bat on the sweet spot.

Your Strategic Sweet Spot is “where you meet the customer’s needs in a way that rivals can’t”, given the context in which it competes. (Harvard Business Review)

 

Many of us try to “be all things to all people”; however, narrowing down your niche, will allow you to focus your time, money, and resources to the right target. Use these (7) steps from Entrepreneur magazine to help:<

1. Make a list. Who do you want to do business with? Be as specific as you can. Identify the geographic range and the types of businesses or customers you want your business to target. If you don’t know whom you want to do business with, you can’t make contact. “You must recognize that you can’t do business with everybody,” Falkenstein cautions. Otherwise, you risk exhausting yourself and confusing your customers.

2. Focus. Clarify what you want to sell, remembering that a) you can’t be all things to all people and b) smaller is bigger. Your niche isn’t the same as the field in which you work. For example, a retail clothing business is not a niche but a field. A more specific niche may be “maternity clothes for executive women.”

To begin this focusing process, Falkenstein suggests using these techniques to help you:
  • Make a list of things you do best and the skills implicit in each of them.
  • List your achievements.
  • Identify the most important lessons you’ve learned in life.
  • Look for patterns that reveal your style or approach to resolving problems.

Your niche should arise naturally from your interests and experience. For example, if you spent 10 years working in a consulting firm but also spent 10 years working for a small, family-owned business, you may decide to start a consulting business that specializes in small, family-owned companies.

3. Describe the customer’s worldview. A successful business uses what Falkenstein calls the Platinum Rule: “Do unto others as they would do unto themselves.” When you look at the world from your prospective customers’ perspective, you can identify their needs or wants. The best way to do this is to talk to prospective customers and identify their main concerns.

2017-01-13T19:05:14-04:00Business Strategy|0 Comments

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