When Jeff Ahola decided recently to
target The Ahola Corp.’s services
specifically to family-owned businesses, it was not the first time he had refocused the company — itself family-owned
and operated — around a specific market
niche.
Upon its founding in 1967 by Ahola’s parents, The Ahola Corp. operated as a general data-processing bureau, using mainframes to compute a wide range of business functions. Nearly 20 years later, Ahola
joined the organization as marketing manager and made a quick realization.
“I joined the firm in 1984, and shortly
thereafter, I realized we were just too
spread out as a company,” Ahola says. “We
were competing in a humongous number
of markets and areas.”
Choosing which of those markets to target was difficult, but after weighing his
options, Ahola settled on outsourced payroll processing.
“That first choice to focus just on payroll
services was a huge decision, and it was the
right decision, in retrospect,” Ahola says.
“You can forecast it, but when it comes to
where the rubber hits the road, you’ve got
to make the decision.”
Once you’ve made the decision to focus
your business, Ahola says the biggest challenge is often preparing your staff for the
process. Communication from the top is critical in reducing the confusion and frustration
that accompanies any significant change.
“When you see the vision clearly, you
assume that everybody else sees what you
see,” Ahola says. “Not everybody can be
whole-brain thinkers, and that’s what good
leaders need to be aware of.”
At least some of that communication is non-verbal, Ahola says. During any business
adjustment or refocusing, it is imperative that
once a decision has been made, a leader projects a sense of confidence, not indecision.
“It’s like if you’re leading a battle and
you’re in a boat and you’re landing the boat
and going inland; you’ve got to burn the
boats so you’ve got to go forward,” Ahola
says. “Confidence builds success, and then
success builds confidence. Your people
need to be confident that you feel you’ve
made the best decision.”
Projecting confidence, however, is sometimes easier said than done. Ahola says that
while the benefits of such a change can be
slow to materialize, a leader must stick to his or her guns.
“What’s difficult in this economy is that
you can’t filter between, ‘Is it the economy,
stupid?’ or, ‘Is it your strategy, stupid?’”
Ahola says. “You’ve got to be ready to withstand the short-term confusion of the marketplace. Once they see the benefits of the
focus, the growth will go very, very rapidly.”
Making the correct and profitable niche
marketing decision requires, first and foremost, that a leader be familiar with all
aspects of his or her own organization.
Above all, Ahola stresses the importance of
being well-acquainted with your customers
and their issues before choosing how you
can best appeal to them.
“You just have to know your business,”
Ahola says. “You have to be out there with
your clients. You have to be there in a sales
capacity, an owner capacity and a customer service capacity before you make
the decision.”
Though conventional wisdom might suggest that targeting a specific niche is limiting your opportunities, Ahola believes just
the opposite.
“It’s tough to think you’re going to shrink
your market,” he says. “You’re actually
going to expand it. You’re going to enhance
your expertise and you’re going to create
your own leadership position in a category,
especially if the category has not been created yet. There is no leader for family companies for payroll services, and we intend
to take that leadership position.”
HOW TO REACH: The Ahola Corp., (440) 717-7620 or
www.ahola.com
Rules to better niche marketing
Niche marketing can be a low-cost, low-risk strategy to grow your business.
Keeping your risk low, however, requires
foresight and thoroughness. Kim T.
Gordon, an author and marketing coach,
offers these three rules to effective niche
marketing.
- Meet the unique needs of potential
clients. The benefits you promise must
have special appeal to the market niche.
What can you provide that’s new and compelling? Identify the unique needs of your
potential audience and look for ways to tailor your product or service to meet them. - Say the right thing. When approaching a new market niche, it’s imperative to
speak the language of the niche. In other
words, you should understand the market’s hot buttons and be prepared to communicate with the target group as an
understanding member, not as an outsider.
In addition to launching a unique campaign
for the new niche, you may need to alter
other, more basic elements, such as your
company slogan if it translates poorly to
another language, for example. - Always test the market. Before moving ahead, assess the direct competition in
the new market niche and determine how
you will position against them. For an
overview, it’s best to conduct a competitive
analysis by reviewing competitors’ ads,
brochures and Web sites, looking for their
key selling points, along with pricing, delivery and other service characteristics.
SOURCE: To reach Kim T. Gordon, go to
www.smallbusinessnow.com
