5 Reasons Why You Need to Specialization as a Business Strategy
The growth and popularity of the internet has led to an influx of information resources which would have been a tad bit difficult to access. For instance to be able to make soaps or creams for body care in the past, one would have to go to a school for cosmetology or something like that. But now, anyone can go online, watch tons of videos and read articles on skin care or take an online course and walla, a cosmetologist.
With the recession in Nigeria, and the ease of access to information, we have as a result of this, a heavily populated business sector. While this is not necessarily a bad thing, since everyone wants to start and run their own business, there is also heavy competition.
Too many fishes in the sea.
Why do I say so?
A lot of business owners prefer to offer a wide range of services over a specific service. While this is also a smart business move, there a kinda a lot of businesses that offer decentralized services.
For instance, a typical nigerian bookshop sells every kind of books and sometimes including stationaries too. Smart shebi?
Now let's say there are two bookshops, bookshop A is a typical nigerian bookshop and bookshop B offers products and services for children only. If you're a parent which would you take your child to shop in?
B of course.
Because of a number of reasons we'd be looking into soon.
So, why should business owners consider specialization as a business strategy? What benefits does Specialization offer a business owner?
Specialization as a business strategy has a number of undeniable benefits. And we'd be looking into some of them.
Photo Credit: Pixabay
The Benefits of Specialization for Businesses
1. Increased Productivity and Effieciency
I suppose, we are all familiar with the saying "jack of all trades, master of none". A decentralized business offers a wide range of services and as a result of this, stretches its resources thinly to cover this field of services. But specialization offers you the opportunity to narrow your operational field and focus your resources in a particular niche. Thereby, increasing the productivity and efficiency of your business.
2. Reduced Learning Curve
It is easier and cheaper to improve knowledge and develop skills in a particular niche than a class of niches. For instance, it would be easier for an aspiring fashion designer to learn how to make children clothes over a general fashion design course.
Not only is the learning curve greatly reduced for specialization in business, you'd also be able to focus your resources into gaining in-depth knowledge in your chosen niche. And consequently develop expertise in whatever niche you're specializing in. Customers or clients would refer to your business to meet their needs over another business that has a brush over knowledge.
3. Reduced operational cost
When your business focuses on offering services in a given niche, operational cost is greatly minimizes. In that, the resources that would have been spent chasing far flung areas would be focused on a particular or specific area. And of course reducing operational costs while at the same time improving productivity and efficiency.
4. Better Conversion Rates
Specialization alongside reduced cost of operation, offers better conversion rates. In earlier stated examples, we've seen that people are more likely to patronize businesses that specialize in services that meet their specific needs over others that do not. Meaning that your business is bound to get better conversion rates if you specialize in a niche.
5. Less Competition
In a smaller niche, competition is bound to be lesser than that of bigger niches. Therefore, giving your business room to spread it's wings and grow.
In the the same vein, with lesser competition, a specialized business has a better chance of making a name, becoming an authority in it's chosen area of specialization.
If there are too many big fishes in the sea make your own pond and be a big fish.
Thanks for reading :)
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