It was a warm, quiet winter afternoon as I walked along the beach. At the headland there was a typical collection of rock pools. Lots of pools, some with more water than others, and some surging with the tidal wash. As I looked more closely I noticed the inhabitants – a purple anemone or two on the sidewall, sea snails moving slowly along the crevices, and other small creatures swimming around.

Over recent times I have spoken with a number of people who are in the early stages of building their businesses or launching a new concept. As I peered into the rock pools, I was struck by the similarities between these two environments.

In each situation it’s a matter of survival. Existing in a changing environment, trying to grow. In each case there are also larger factors at work, outside of the control of any individual, which can have a huge impact on the likelihood of success.

For a business to succeed it is essential to have a very clear understanding of the environment in which it operates. Business operators must know which rock pool they are in and who the other inhabitants are. It is critical to gain an understanding of their own uniqueness and their own role. This means having a clear focus on the niche you fill in the market you have chosen.

Knowing your niche is important for two reasons. Firstly it allows you to clearly communicate your role to others within your environment. This may be to customers, suppliers, financial backers, a potential partner etc.

Secondly, it empowers you to make relevant decisions about running your business. Critical factors such as marketing can be addressed in light of the role you have defined. Priorities can be determined – and managed – to progress the business towards its objectives.

Often potential customers must be consulted to gain an understanding of how a new idea or product will be perceived. These perceptions can then be taken into account when developing an overall approach to marketing the business. If you (or your product) are new to your chosen niche, there will be learning required by both you and your customers.

And just as sea creatures must cope with the tidal wash in a rock pool, business people must manage in the face of evolving market influences that are regularly changing and exerting pressure on their business.

By understanding your market niche you can retain your focus and prosper from the tide of change.

Stuart Ayling runs Marketing Nous, an Australasian marketing consultancy that specialises in marketing for service businesses. He helps clients to improve their marketing tactics, attract more clients, and increase revenue. For additional marketing resources, including Stuart’s popular monthly newsletter, visit his web site at www.marketingnous.com.au