3 Examples of Successful Niche Businesses

Small businesses can sometimes feel like little fish in a big pond. Larger companies seem to have all the resources to compete. They can out-market anyone, and they have the man power to outsell. But, if your company focuses on a niche, you can outperform larger businesses.

The following companies worked the niche angle, and gave their customers’ needs all of their attentions. (Niche business building is the one situation where it’s okay to put all your eggs in a single basket.) Mixpanel, Pacific BioStorage (PBMMI), and Diapers.com are perfect examples of how the niche business model works to build a business, and outperform competition.

Mixpanel

Mixpanel measures actions, not page views. The metric company helps website developers determine exactly how they’re engaging with their site visitors. This innovative metric is useful for businesses seeking to retain customers, and alter their site to best meet their visitors’ needs.

Mixpanel is a great example of a successful niche business because they’re not combining their analytics with other services. Their main focus is helping their customers determine what actions are drawing visitors to their page, who is sticking around, and how those users are interacting with a site. Overall, by maintaining this focus, Mixpanel is liberating customers from companies who continue to “push page views as a primary measure of success.”

Pacific BioStorage

Pacific BioStorage could have focused on full-service laboratory sales and delivery, but they didn’t. Instead, their focus has remained on transporting biological materials, and this niche has earned them an outstanding reputation in the scientific community.

Customer service is one of the major reasons niche businesses are able to seduce customers from larger, corporate businesses. They treat their customers to individualized customer service, by offering them personal contact with a single coordinator. Unlike larger companies with a much broader focus, PBMMI treats every customer like a person because their niche allows them to readily focus on common issues. PBMMI isn’t distracted by other company offerings, but is rather focused on transport at all times.

Diapers.com

Diapers.com is the perfect example of a company that started with a niche, and then grew into a recognizable brand. Currently, Diapers.com is the largest online baby care store in the country. When they started out, they focused solely on diapers (hence the name), and what growing family doesn’t need diapers? Prices were low and customer service was quick, which resulted in a huge influx of traffic. As it turns out, parents loved the idea of buying diapers online, as opposed to in-store.

Eventually, Diapers.com branched out. The website is currently a full-service baby care store, with some non-kid-related household items for sale. Moreover, Diapers.com has grown from a niche business, to the big business niche businesses have to compete with.

Niche now; expand later

Your best course of action is to build your company around a single niche, and watch your credibility grow. Eventually, you’ll have the customer base you need to expand your business.

Over time, you can begin to offer your customers more products and services. You can expand, and your current customers will appreciate the additional level of support they’re receiving, as well as the convenience of having all their needs handled.

Continue to stand out; no matter how big you become

Before you know it, you’ll be the big fish in the pond. Remember: by always giving your customers dedicated, focused attention, you’ll keep them in the fold because you wouldn’t want to end up losing your customers to a competing niche business.