Charles Lau dot Com

It makes lots of sense to have a business with several products and services to sell. It seems to be better if we are able to sell with whatever we have to offer within our reach. That could be the reason why people might get greedy to sell several items under the same business name. Let me tell you why you should focus on one niche as much as you can.

Having one niche simply means that we are going to be an expert in a certain area. It doesn’t really mean you have to sell only one product or two. The idea is to be really focused in the niche that you wish to do. First of all, it gives the overall branding of your business an impact if you keep on doing this long enough to stay in the same industry. Everybody will start associating your brand name to the particular niche that you are in.

Another reason why you should focus on one niche is that you will open up even more market than you have expected. Imagine you selling more than one niche, you are simply converting your potential customers into your competitors. Why? Just imagine you selling computers, printers and even cameras while your competitors are selling only computers… Your competitors might not feel like buying printers from you just because they might think of themselves as a betrayer to their own brand.

Ok, the previous paragraph is more for the market outside the Internet realm.

In the Internet world, all of us tend to think of doing joint ventures with our competitors instead of fighting with one another. So far as I know, I still don’t really see any company outside the Internet realm doing the same thing. That is to say, if you are selling printers in your own brick-n-mortar store, you probably wouldn’t think of a joint venture with another printer seller. In fact, this has been the idea instilled in most of the companies out there.

That is why when we are having a particular niche to focus on, we tend to have more potential customers to buy from us.

Take a look at this simple formula:

(Number of Customers) x (Range of products You Have) = (Sales)

If you wish to increase the number of customers, your range of products should be going down to cater to more potential customers.

And if you wish to increase your range of products, you tend to have lesser customers buying from you.

You might think that this is more for B2B businesses. But come to think about it, the employees that they employed might be mostly loyal to their companies.

As for the Internet, it might be otherwise. That’s because we are all having our own portable business empire. We are simply a one-man show to have fun working while playing at the same time.

Just some random thoughts out somewhere…