In his book by the same name, Richard Koch of 80/20 fame explains that there is one thing that sets star businesses apart from any other businesses.
It’s not your ability OR hard work OR your mix of people OR the quality of those people.
All of those factors are relevant and can sometimes make the difference between success and failure.
But there is one factor that stands out WAY beyond any of the others.
Its the factor that all business owners should use to test their own business against – assuming that they want to be highly successful in the shortest time.
In short, the factor is POSITIONING.
Koch boils this down to both the position of your business in the market niche in which you exist AND the position of the market niche relative to the rest of the economy (ie all businesses).
This provides 2 simple tests:
1) Is your business the leader in your market niche; and
2) Is your that market niche growing by at least 10%
If your business meets both these criteria, then it will almost certainly exceed – and exceed way beyond expectations – irrespective of the other aspects of the business.
In a future post, we will explore what is meant by ‘market niche’ but most readers will be able to test their business against the above tests – and if you are like most small businesses, you will probably fail on one or both of these test.
What then? Does it mean closing the doors and going back to good ol’ employment?
Not at all. The secret lies in the meaning of ‘market niche’ and how you can position your business to become a new niche. More on this soon.