Selling to as many customers as possible sounds like the obvious growth strategy, but it’s often the wrong one. Lindokuhle Magubane built a genuinely profitable business by doing the opposite: narrowing his focus until almost no one else could compete with him.
A smaller market can be more profitable, not less
Magubane’s earth-moving equipment maintenance company, Expandable Projects, started by serving a wide range of construction and mining clients. It became more profitable once he narrowed to specialising specifically in Volvo equipment. A highly defined target market consistently pays more for specialised expertise, the same reason a cardiologist charges more than a general practitioner, and large competitors targeting the mass market inevitably leave gaps that focused niche businesses can fill.
Know your customer better than anyone else can
Larger companies often overlook the specific frustrations of a narrow customer segment. Meeting those specific needs, rather than chasing volume, builds the kind of loyalty that keeps clients coming back and positions a niche business as the credible go-to option in its space.
Know your market, and keep evolving within it
Operating in a less competitive space doesn’t excuse complacency. Understanding exactly what separates your business from any competition, and staying open to experimentation within your niche, is what keeps a specialised business relevant as it grows.
Support programmes can accelerate a niche business
Magubane credits structured business development support, accessing skills training, peer networks, brand development and a business mentor, for helping him diversify his offering and grow his team, ultimately securing a five-year subcontracting agreement.
Frequently asked questions
Is a niche market strategy less profitable than targeting a broad customer base?
Often the opposite. A highly defined target market will typically pay a premium for specialised expertise that a generalist competitor can’t match.
What’s the biggest risk of operating in a niche market?
Complacency. A less competitive space doesn’t mean you can stop refining what separates your business from any potential competition.
Is external business support worth pursuing for an established niche business?
Structured programmes offering mentorship, peer networks and skills training can meaningfully accelerate growth, even for a business that’s already found its niche.
Depth over breadth
A genuinely specialised business, one that knows its narrow market better than anyone else, can out-earn and outlast competitors chasing a much wider customer base. Depth, not breadth, is often the more defensible strategy.
Further reading: How to Create a Customer Profile | Companies and Intellectual Property Commission for official business registration requirements
Originally published in August 2019. Updated September 2026 to refresh this niche-business case study. The underlying lesson on specialisation over volume remains durable.
