Find Your Niche, Find Your Customers

Lessons from day care centers

Day care is a textbook example of an industry where entrepreneurial small businesses rule the field. These small operations, often run out of private homes, can be exciting and profitable ventures. Kris Murray, CEO and founder of Child Care Marketing Solutions, has a lot of lessons that can apply to many other small businesses. Her main suggestion for getting new customers: conduct thorough market research and find your niche.

"Set yourself up for success initially by specializing," Murray recommends. Your initial research can involve just some simple footwork. For example, what kinds of parents live in your area? If you live in a college town with a lot of young intellectuals or university professors with families, it might make sense to open a "child development center," with a learning environment. If your neighborhood has a major blue-collar industry, consider opening a day care center with earlier or later hours to accommodate common work shifts.

Researching and visiting other like businesses in your area is also an essential part of your research. "It might sound like a scary task, but it's really not," Murray says, "It's basically just talking to people." Go to other centers in your area — or send a friend — and inquire about rates, sizes, and specializations. Finding out how full the other childcare centers are can be a good clue, as well. For example, if they have a long wait list, chances are better that there's room for your business in the market.

These market research and specializing tips can help any small business discover where their potential customers are hiding. By paying attention to your market and thinking about what your customers are looking for, you can create a strong business that fills a need in your community.