Great post!

We are doing it and we have been actually pushing some very big fish out of the market.

This model works best when the widget volume of sales is low (not a mass produced item) and particularly in niche markets.

The key is keeping our operating costs very low and a lean operational process. We have been able to beat established competitors on price, quality, and delivery times.

Being small makes us faster on our feat and more customer centric. Keeping operating costs low is passed onto the customer giving us a competitive edge.

I do it by marketing a unique product. You can't make money making and selling something some factory is making overseas. You can only be successfull by filling a market niche.

Some feel that a very small market niche is the way to go. Too small for overseas competiton. Well, I am here to tell you there is no such thing.

What you can do is deliver value added. Sometimes the value is the service, sometimes it is a warranty. Rarely is it a smaller price, because that just tells the customer that you are a pushover, and they will want that lower price, and a lower one after that. My answer is fine...I could do that. Good fast or cheap Which two do you prefer?

The comments regarding niche markets are dead on. My manufacturing experience was that to lower the price of a product 10% you had to sacrifice up to 30% in quality. However to make the product 30% higher in quality it only cost 10% more. ( figures are variable but representative.) I manufactured and sold a product that in many cases was 50% higher in price but when the customer compared the quality from several aspects chose mine. Reasons? More material, stiffer and stronger, better finish, longer warranty, unparalleled service. I was very proud of my product and was able to relate to Robin Hood on the balance sheet without breaking any laws.

You may also find that working in various industries the opportunity to see a device or process that can be improved with a financial benefit to you and your client presents itself much more often than if you are isolated from that environment.

GA Yusef1

There are many examples of small guys going up against the big guys and winning. A couple of them are Sam Walton with Wal Mart, Herb Kelleher and Rollin King of Southwest Airlines, Walt Disney of Disney are three very notable examples.

They started out small with small ideas that at the time were revolutionary. Great people who accomplish great things are usually those who buck the system and come up with new ideas and new thinking.

Most often it is people who believe in what they do, have the persistence and hunger to carry on in spite of possible overwhelming odds that succeed. "Hunger triumphs over talent in the long run". People who are "hungry" to succeed will find a way to make an idea work. They will experience some setbacks, resistance, naysayers, etc., but in the end they win because they never quit. They may win in another area of venture other than their original idea. The important thing is that they didn't give up in face of adversity.

There are many factors involved in making a business work successfully and my Post just addressed a couple of them.

A critical area I didn't mention is to read voraciously about people who have built successfful businesses, and are doing this. Books like "Made In America" by Sam Walton, "E-Myth" by Michael Gerber, "Good to Great", or "Built to Last" by Jim Collins, etc. Go hear them speak if possible, buy audios to listen to.

Find business owners near you who have started their businesses and are operating them successfully over a period of time. Buy them lunch, pay for some time with them if need be. Come prepared with questions you want to ask. Ask the question and then be quiet, let them speak.

There is a statement that says, "methods are many, principles are few, methods may change, principles never do." The principles of success are timeless but they are applied in different business environments.

Don't forget the greatest success story of all time; Steve Jobs of Apple and Bill Gates of Microsoft.

How about Bernie Baruch? Or Wilbur Wright?

Both visionaries.

Carnegie...who felt that libraries were so important that he funded hundreds of them. Result...a near 100% literate population.

Most of what has been said provides a sound base for a building and surviving in a niche business.

Yes you might be competing with the big boys perhaps on a single product basis with lots of added value, but also a lot depends on the product range as well. Often the big boys offer a whole range of products and thus it dilutes their efforts when it comes to face-to-face sales on specific items.

We operate in a niche market, and although we compete with the big boys, and can beat them on price every time. In reality we do not get the opportunity because people have never heard of us.

We are no threat to the big boys them in terms of global sales, because we cannot offer a competing range of products or support to all their established customers. They in turn cannot afford to get involved in 'one-off specials' and sometimes pass our name to their 'awkward' customers when the situation suits them, and we work them to sort out the problem. Some of our biggest orders come from our competitors.