What niche do you fill?One thing I've learned over the years is that it's better not to be everything to everyone. Can you imagine going to the world's largest fast food restaurant for lobster one day and then hot dogs the next.
Even if that business decided to expand into those offerings, the amount of extra cash required to carry that inventory for the opportunity to sell would probably not be cost effective. The reason is the number of food offerings and the chance that no one might buy that item before it spoils. That means if it doesn't sell within a period of time then they need to throw it away as waste (or if you prefer the term then spoilage).
The same principal applies to your business. You may not want to tie up your cash to offer everything. If you have a niche to your business then you may be able to perform that service or sell your product at a better price point while still maintaining your desired profit margin. It would also be easier for clients to feel comfortable that you know your niche as well or better than your competitors. People like knowing it is what you do every day and you are not learning on their dime.
I am a CPA in San Antonio and I service the needs of small business and individuals in San Antonio and surrounding areas.
Richard J. Garcia | 04/01/2010