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Creating A Profitable Niche Business

November 4, 2013

Business Advice for Women Entrepreneurs and Small Businesses

nichebusiness

My cousin opened a quaint coffeehouse two and a half years ago. For a number of reasons including lack of staff, being overworked and not earning enough profits, he closed the café to focus on his other profession. With the coffeehouse vacant for a year and customers yearning for him to reopen the business because they loved the atmosphere and food, he resurrected the café a month ago.

When I asked him how the business was going since reopening he said, “Fantastic! We have better weekly sales than we ever had before.” Intrigued, I asked him why he thought the restaurant was more successful this time around. His response inspired me to create this blog post with his answers. I think some of his procedures can help other entrepreneurs’ businesses today:

• We realized we were losing money being open from 7 a.m. – 7 p.m., 7 days a week. We created a limited service time based on when we knew we would have the best revenue flow. We are now open Wednesday, Thursday and Friday from 11 a.m. – 9 p.m. and make more money in those three days than we ever did before. Tip: Analyze when your business is bringing in the most money – what time of year, what week, what day, what time and trim your hours to service your client’s buying patterns if you need to save money. Make sure to advertise your new times to your customers too.

• We also limited our menu to produce easier, higher profit margin choices to make the business more profitable from the start. By spending less money on ingredients and saving time by deleting menu items that didn’t sell has brought more revenue to the business at a faster pace. Tip: Understand the profit margin on everything you produce. Discover ways to provide high quality services or products at a lower price to increase your profit margins.

• We are excited to be in a niche market now within our community. We made sure our customers knew our café would be different than others – opened during limited times but serving the same fantastic food and warm atmosphere as before. Our customers flock to our store knowing we are open a limited period. Tip: If you are in a large market, think of ways to create a unique niche that serves your customers and you. Make sure to market your company properly and to communicate what makes you unique frequently.

It isn’t quantity that always produces the most profitable business; it can be the special niche of the enterprise that makes it much more lucrative.

KikkosKoffeeHouse If you are in Rome, New York and looking for a great cafe, stop by Kikkos KoffeeHouse on Turin, Road. You can find them on Urban Spoon! Tell them Tracy sent you.

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3 Comments leave one →
  1. November 4, 2013 12:02 pm

    Tracy – this is exactly why I reopened Infused! People kept asking, so we did it. Now, because we are off the beaten path, we need to figure out how to get the people to 37 Fennell Street!! This story gave me a much needed boost!

    Like

  2. November 4, 2013 12:08 pm

    Elaine: I am always glad when the business advice I share through our blog and at events helps other women! I am glad you re-opened! When I visit Skaneateles next, I’ll stop by to say hello! Keep in mind WomenTIES has 17 PR tools we give to our members. It might be something to help you in 2014. Best of luck! Tracy

    Like

  3. November 5, 2013 3:08 pm

    I wondered what happened to Kikko’s! I’m happy to hear the back story, and will definitely be stopping in soon!

    Like

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