How small business agility, innovation and a network of professionals can lead to success in niche markets

Small businesses can often out-manoeuvre larger firms when addressing new market opportunities. Their ability to act and implement quickly are key areas of advantage.  Going one step further and building a network of supporting professionals, means you can often create an entry barrier that makes it difficult for larger firms to compete.


An inspiring story recently served as a refreshing reminder of how the odds can be stacked in favour of agile small businesses.  The key word here is agile.

Model Sounds UK was conceived and born in just three weeks and has gone from zero to a projected first year turnover of over £100,000.

Mark Thatcher, the MD of Model Sounds UK, became frustrated when he couldn’t find a solution to a problem concerning his model boat hobby.  So he patched something together himself that seemed to do a good job.  Thoughts soon extended to the sales potential as it was clear from Mark’s initial research that he’d found a gap in the market.

Mark quickly moved to set-up a functioning web site with his wife, and the Model Sounds UK business commenced trading just three weeks after the concept was developed in July 2012.

Mark started the business with less than £1000 and sold 53 units on his first trading day.  Six months later, unit sales had exceeded 800 units and channel distribution was showing promising expansion. 

This is a great illustration of small business entrepreneurship.  Larger organisations normally require new ideas to be formally approved in advance by at least one senior manager.  Such firms are locked into a planned programme of activities.  Procedures must be followed to ensure all necessary compliance and governance rules are met, otherwise their insurance cover could be compromised. The need to “manage” gets in the way.  This is why larger firms tend to be less agile.  Smaller businesses are able to be more innovative and can act faster. 

Innovation in small firms means having the right mind-set.  Successful entrepreneurs often consciously look for new ways to improve an existing product or service, or look for gaps in the market.  This conscious approach is a skill that small business owners can develop.

If you make a point of looking for market gaps or new ways to improve the items and processes you use every day, you will soon have a steady stream of ideas worthy of evaluation.  The majority will fall by the wayside.  Others will look more promising.  

As a small business owner, you will be better placed than a larger company to quickly refine an idea, build a prototype and take it to market.  It may not be a new business opportunity like the Model Sounds UK example; it might be an enhanced product offering or an improved service.  The outcome will help to differentiate your position in the market, and to do so before a larger competitor can act.

What you will want to do is make sure that you allocate tasks and processes in the most efficient manner. This will help to keep costs as low as possible and so create an entry barrier that larger firms will need to address when they finally start to react to your initial market advantage.  

So, for example, if you need to generate market awareness and leads quickly and cheaply but don’t feel your skills are in the area of blog writing or social media engagement, outsource the task to a professional at the outset.  It’s pointless developing a new idea, only for it to lose early mover advantage because you decided on a DIY promotion strategy; one that doesn’t communicate the key messages or lacks professionalism.  The same goes for technology support, logistics, parts sourcing and all other aspects of the value chain.  

By building a network of small business professionals for each of the areas that are outside your core competence, you’ll be giving your innovation a better chance of success.  Small business owners empathise with each other and will often work that bit harder to be part of a small business success story.


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