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Friday, February 12, 2010

Specialize Your Business

Many small businesses make the mistake of trying to sell their products and services to everyone.  It makes sense at first: selling to more customers means more money, right?  Not necessarily.  Different customers want different things, and it is extremely rare for one good or service to satisfy everyone's needs. 

Take television, for example.  Back in the old days there were three networks: NBC, ABC, and CBS.  They all produced similar programming choices (local news, half hour sitcoms, one hour dramas, etc.).  A particularly successful show could most American households to watch on a regular basis.  Today, however, there are too many viewing choices to count including newer broadcast networks like Fox and CW, cable, premium cable, satellite television channels, and the internet.  Many of these networks are highly specialized like themed networks (i.e. Comedy Central or the Travel Channel).  The internet is ultra specialized and consumers can find exactly what they want, when they want it. 

The Lifetime Channel does not show James Bond movies.  The Food Network doesn't air Nascar races.  They stick to what they're good at.  That's just smart business.
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