It is widely accepted that one of the biggest no-no’s in entrepreneurship and small business development is attempting to break into an over-saturated market. Granted, it takes a bit more strategy to develop a business and marketing plan, but success is possible. If you’re looking to cash in on a saturated industry, these are some strategies you can use to stand out from the crowd.
Find a Niche
A niche is a particularly narrowed market that offers a specific product (or range of products) to a specific audience. For example, pretend you would like to start a photography business. Photography is extremely saturated right now, but you can succeed by choosing a niche in photography. Many photographers focus on selling shoots that they are good at. Graduation portraits are a great example of an unsaturated niche in the photography industry, as not all photographers can produce these types or portraits but they are in high demand. You should always narrow down and choose your niche as soon as possible.
Remember That The Demand is There
Saturated markets almost always equate to high demand. While more restaurants are not generally needed in most areas, new eateries sprout up every day. However, successful new eateries can attribute some of their success to their niche, as well as how they place themselves with their branding and in the market.
One of the many reasons there’s nothing wrong with tapping into a saturated market is because you have the opportunity to change it. Many successful businesses that have been around for decades might not be willing to adapt to new demands of their market. However, this can be your chance to induce those changes with your own business.
When breaking into your market, think about the value that other businesses aren’t giving their consumers. Instead of simply selling a product to a customer, you can give them a first time discount, as well as an incentive to continue business with you in the future. Make your business worth the customer’s time and money.
Go With What You Know
Along with finding your niche, playing to your strengths is an excellent way to help your business stand out from the rest. Nina Christenson, the owner of a small event management business, credits her expertise to her Bachelor’s in Sport Management. She advises other small business owners to use whatever training and experience they have to create a unique business, even if they are breaking into an unrelated industry.
Deliver Great Customer Service
Lastly, never settle for less than the best customer service for your consumers. Customer service matters for any business, regardless of its market, but this is especially so for those in saturated markets. Businesses with countless competitors are at a higher risk for losing their customers to other businesses. This is simply because there are many other options to choose from. You can improve your consumer retention with great customer service. Don’t immediately settle for low-ball prices; think about how you can make the customer happy and continually deliver that level of service.