Market

Cottage Industry

Cottage Industry Jonathan Poland

A cottage industry is a small-scale, home-based business or economic activity that is typically run by a single person or a small group of people. Cottage industries are often characterized by low levels of capital investment and the use of traditional or artisanal techniques. They often produce handmade or customized products, and may rely on local resources and raw materials.

Cottage industries have a long history, and have played an important role in many economies around the world. In some cases, cottage industries have evolved into larger, more formalized businesses, while in others they have remained small and local in nature. Examples of cottage industries can include things like knitting, woodworking, or pottery-making.

Cottage industries can offer a range of benefits, including the ability to work from home, a sense of independence and self-sufficiency, and the opportunity to create and sell unique and handmade products. However, they can also face challenges, such as limited access to markets and customers, and the need to compete with larger, more established businesses.

Here are some cottage industries:

  1. Handmade crafts: This can include things like knitting, quilting, or pottery-making.
  2. Home-based food production: This might include things like baking bread, making cheese, or preserving fruit and vegetables.
  3. Artisanal manufacturing: This could include small-scale production of things like furniture, clothing, or jewelry.
  4. Gardening or farming: Some people may run a small-scale gardening or farming operation as a cottage industry, growing produce or flowers to sell at local markets or directly to customers.
  5. Home-based services: This could include things like babysitting, pet-sitting, or providing home-based care for elderly or disabled individuals.
  6. Handyman or home repair services: Someone with skills in carpentry, plumbing, or electrical work might offer home repair or maintenance services as a cottage industry.
  7. Tutoring or teaching: Some people may offer private tutoring or teaching services, either in person or online, as a cottage industry.

Market Environment

Market Environment Jonathan Poland

The market environment refers to all of the factors that can impact a company’s strategy, decision making, and tactics. This includes both internal and external conditions that can affect a business. The market environment can include a wide range of elements, such as economic conditions, competition, technological advancements, government regulations, and social and cultural trends. By understanding the market environment, companies can make informed decisions and develop effective business strategies. The following are some common elements of market environments.

Customers
The needs, perceptions and mood of your customers including:

  • Brand Awareness
  • Brand Image
  • Brand Recognition
  • Customer Motivation
  • Customer Needs
  • Customer Perceptions
  • Pain Points
  • Price Sensitivity

Competitors
The threats and opportunities presented by your competitors.

  • Brand
  • Business Capabilities
  • Competitive Advantage
  • Competitive Advantage
  • Customer Experience
  • Customer Satisfaction
  • Prices
  • Relational Capital
  • Reputation
  • Strategic Intent

Internal
Your internal environment that represents your strengths and weaknesses in the market. This can be extended to include the strengths and weaknesses that you incur due to partnerships.

  • Ability to Innovate
  • Brand
  • Business Capabilities
  • Competitive Advantage
  • Competitive Advantage
  • Customer Experience
  • Customer Satisfaction
  • Efficiency
  • Overhead Costs
  • Productivity
  • Relational Capital Reputation
  • Time To Market Unit Costs

Economy
Economic conditions including areas such as credit, labor, demand, supply, stability and growth. For example, a low unemployment rate that makes it difficult for small businesses to recruit employees.

  • Business Confidence
  • Business Cycle
  • Consumer Confidence
  • Credit Market Conditions
  • Deflation
  • Demand
  • Economic Growth
  • Inflation
  • Interest Rates
  • Inventory Levels
  • Recession
  • Supply
  • Unemployment

Political
The changing laws and policies of governments and other political events such as protests and strikes. For example, a government that requires businesses to shutdown to try to reduce some risk to society.

  • Government Shutdowns
  • Industry Regulation
  • Labor Law
  • Political Events
  • Political Stability
  • Protests
  • State of Emergency
  • Strikes
  • Tariffs
  • Tax Interpretations
  • Tax Policy
  • Trade Disputes

Social
Changes to society, culture and the way that people think. For example, consumers who grow aware of an environmental problem associated with a product, service or material.

  • Attitudes
  • Consumer Behavior
  • Demographics
  • Interests
  • Opinions
  • Psychographics
  • Values

Technological
Change to technology including physical technology and information technology. For example, new materials that make it possible to vastly improve your products.

  • Abandonment of Technology
  • Adoption of Technology
  • Data
  • Digital Convergence
  • Information Security
  • Infrastructure
  • Intellectual Property
  • Materials
  • Media
  • Platforms
  • Technology Economics
  • Technology Preferences
Learn More
Needs Analysis Jonathan Poland

Needs Analysis

Needs analysis is the process of identifying the valuable requirements for a product, service, experience, process, machine, facility, or infrastructure…

What is Price Stability? Jonathan Poland

What is Price Stability?

Price stability refers to the maintenance of relatively stable prices over time. This is typically measured by the rate of…

Generic Brand Jonathan Poland

Generic Brand

A generic brand is a type of brand that does not have a distinct or unique image. Instead, it is…

Austrian Economics 101 Jonathan Poland

Austrian Economics 101

Austrian economics is a school of economic thought that originated in Austria in the late 19th century with Carl Menger,…

Business Services Jonathan Poland

Business Services

Business services are a type of service that is primarily provided to businesses and organizations, rather than to individual consumers.…

Market Entry Strategy Jonathan Poland

Market Entry Strategy

A market entry strategy is a plan for introducing products and services to a new market. This can provide an…

Nudge Theory Jonathan Poland

Nudge Theory

Nudge theory is the idea that subtle suggestions, choices, and positive reinforcement can be more effective than commands, rules, and…

Practical Thinking Jonathan Poland

Practical Thinking

Practical thinking is a type of thinking that focuses on finding timely and reasonable solutions to problems. This type of…

Customer is Always Right Jonathan Poland

Customer is Always Right

The principle that “the customer is always right” is a widely used guideline in the business world to guide customer…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Analytics Jonathan Poland

Analytics

Analytics is the practice of analyzing data in order to draw insights and inform business decisions. This can include analyzing…

Internal Controls Jonathan Poland

Internal Controls

Internal controls refer to the structures, processes, practices, reports, measurements, and systems that are implemented within an organization to support…

Data Analysis Jonathan Poland

Data Analysis

Data analysis is the process of collecting, organizing, and examining data in order to draw conclusions and make informed decisions.…

Economic Moat Jonathan Poland

Economic Moat

An economic moat is a concept in business strategy that refers to a company’s ability to maintain a competitive advantage…

What is FOMO? Jonathan Poland

What is FOMO?

Fear of missing out, also known as FOMO, is a type of motivation that is driven by a fear of…

What is Cultural Fit? Jonathan Poland

What is Cultural Fit?

Culture fit refers to the compatibility of a candidate’s attitudes and experiences with an organization’s culture. It is a hiring…

Channel Pricing Jonathan Poland

Channel Pricing

Channel pricing refers to the practice of setting different prices for a product or service depending on the sales channel…

Technological Change Jonathan Poland

Technological Change

Technological change refers to the development and adoption of new technologies and the ways in which they transform society and…

Business Development Jonathan Poland

Business Development

Business development is a multifaceted discipline that involves identifying and pursuing opportunities to grow a business. It’s a combination of…