Niche-Chicken-Egg-Business
For years I have been told you must have a market Niche to start a business and maintain a Business. I remember doing a business course 20 odd years ago where one of the main lessons was, “Create a Niche and refine Niche to take out all the risk and then just pound your Niche for everything you have”.
After All, there is little to no Risk
I thought then and I am absolute on the matter today…. Niches are very short lived. Market research is so fast today and the distribution of research is equally as fast.
Your Niche could be the very problem that brings your business concept tumbling IN to a failed concept.
Success could lead to Failure
Last lesson, I wrote about creating a Niche idea that lasted 18 month at its best. The idea was to give security of a knowing by testing my own work and then warrantying the work. The Niche increased my margin of money on the sale and reduced my competition in the market.
Wow you are a Genius John!
That may well be. But….
The fact of the matter is that the market is always full of monkeys, Monkey see, Monkey do!
It is called market research!
At the moment the market embraces a Niche, it is not a Niche. It is market essential because everyone is doing it.
Market essential puts the Niche business at Risk. A lack of Awareness and Presence could be the undoing of the Business.
“Leading to Business failure”
What is happening to cause the Failure is very simple!
Margins get eroded, less money is circulating, greater competitive forces in the marketplace, all leading to reduced profit!
Customers are The Oxygen-Sales are The Blood Flow-Profit is what is Left over for The Future
Marketplace is The Environment (SPACE)
“Oh John, you are full of crap. I have had a Niche for years and it will never change”.
I have been told that so many Times my ear drums have calluses on them.
“After All, my niche is different …..My niche is the exception”.
Good luck if your Niche makes a difference in the marketplace…..The monkeys will find you and create an EMEL (Ever-More-Ever-Less) on your Niche in the marketplace and force competition, leading to the ultimate Eroded Margin, Customer Choice, and Reduced Profit. Heading Towards a
Zero Margins Global Economy
The growth in Internet advertising spending, however, appears to be slowing, indicating that the early euphoria about corporate advertising paying the bill for all the free content given away on profit-driven social media sites has softened. The rate of growth in Internet advertising declined from 23 percent between 2010 and 2011 to only 14 percent between 2011 and 2012. 91 GM’s decision to yank ads from Facebook in 2012, saying they had “little impact on consumers’ car purchases” reflects a growing sentiment among some corporations about the real value of advertising on the Internet. The rate of growth of Internet advertising revenue is likely to continue to fall as millions of users switch from computers to mobile devices. Google, the leader in Internet advertising revenue, is already beginning to see ad revenue dry up in this changeover. While clicks on Google using laptop and desktop computers were flat in the third quarter of 2013, clicks on mobile phones doubled and clicks on tablets were up by 63 percent. The problem is that mobile ads only cost one half to two-thirds as much as desktop ads and, worse still, they only lead to purchases of products and services a quarter to a third of the frequency of desktop ads, and there is no sign that this trajectory is going to significantly change. The reality is that Google’s primary revenue stream is weakening. The New York Times reports that the price that advertisers pay [Google] each time someone clicks on an ad decreased for the eighth quarter in a row. It fell 8 percent from the period last year, largely because mobile ads cost less than desktop ones.
With Internet users migrating quickly to mobile devices, the growth rate in advertising revenue is likely to continue to slow.
The big question being asked in the C-suites of all the major for-profit social media enterprises is what the impact will be on their future growth potential.
Rifkin, Jeremy (2014-04-01). The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism (p. 251). Palgrave Macmillan. Kindle Edition.
The answer to Mr Rifkin’s big question above is really very simple in my opinion:
1. Increased competitions from Omni-Monkey
2. Increased Marketplace Cost Efficiency
3. Reduced Money-Flow Margin
4. Reduced Profit- Little to No Leftover Flow to Create a Business’s Future
“-In Essence a Marketplace Induced Deflation IN a marketplace Perceived Inflation+”
Without EMEL, Marketplace Success is LOW
EMEL-Innovate or Die. Big or Small Makes No Difference
Okay John; what does all this mean?
It means to “ME” that a Human “IN” the Business Thought “-SPACE+” must always be Thinking
EMEL (Ever More Ever Less)
“Thinking is the hardest work there is, which is probably the reason so few engage in it.”
― Henry Ford
“Whether you think you can, or you think you can't–you're right.”
― Henry Ford
“Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young.”
― Henry Ford
This is simple and easy. It’s always the egg first. In Business, the Egg is always the marketplace. The energy of the chicken must have boundaries.
No Marketplace = No Business No Customers= No Business No Sales Exchange= No Flow Money
No Margin= No Profit
No-Space = No ME/YOU
Omni-Business Starts @ Marketplace or at Space First
And Energy Distributions are Second
No Space = No Place for Energy to Exist
It is the same for Omni-Earths Biosphere Inhabitants….
Space First-Energy Second= The First Human Duality
Let The Games Begin. . .
Until Next week,
JDS OUT !_!
