How to check a business niche
Today we will talk about one of the most burning topics for an entrepreneur. This is relevant both for an already formed businessman and for a potential one who only dreams about how a successful start-up will start and start to row money with a shovel, only this one is not yet clear.
In this regard, Google and Yandex statistics simply burst with the number of requests for finding the best business idea, the most cash, quickly paid back, does not require initial capital, and … well, you understand.
Admit it, you would also like to find one, but we believe in the realism of your thoughts and understanding that this will not happen. But this does not prevent us from trying to pick up that niche that will be optimal for you. About it further.
Many people break bones at the stage of selection or because it was made incorrectly. Many people get stuck and start doing something, while others choose which is simpler and more distant (for example, Chinese consumer goods). Both in the first and in the second case, they are terribly jealous of those who have a cool startup the first time.
Let’s discuss right here and now how to find and how to check a business niche?
By the way, you definitely have an acquaintance who right now does not know where to start – send him a link to the article, do not be greedy.
If you do not understand how to determine the direction that will bring profit in the long term, then it will only get worse.
The fact is that it is necessary to analyze not one, but several different options (5-10), which you should have in mind. Of these, the one that is closer and simpler is already differentiated. And without having an understanding of what tools to use for this, the future businessman will remain in theory.
But there is another type
“Thank you, but I already have a deal. I do not need your advice.”
Oh, this is a terrible self-deception. By the way, you are much less fortunate than those who have nothing. They start from scratch, but those who restart their direction will have to pull the baggage from the fixed assets, staff and partners who may not be delighted.
If a manager does not think about development and restarting, then the place in the cemetery of companies is already prepared for him (a vivid example was a pager, a mobile phone became). All products live on S schedule:
Maintaining growth is the goal of constantly checking alternatives.
What you do does not affect the outcome.
Yes Yes. You can re-read the title again – it did not seem to you. We are trying so hard to study the theory, go to trainings, gain knowledge and quickly put them into practice.
But the fact is that the result is not determined by the correct actions, but by what they were aimed at.
Therefore, it is not necessary to sort out the right methods and tools. It is necessary by testing to find the object.
Unclear? Well, OK, then an example:
Ivan Laptev (the character’s name is changed, but he is real) for 8 years he could not jump over the $ 1000 bar per month. He had a small antikafe network. As he just did not pervert: he arranged advertising campaigns, went to street trading, did not spare money on social networks and even opinion leaders, promoted the site, and the result plus / minus did not change. He already began to think that he would not be a Rockefeller.
And then he changed the niche and became involved in the production of children’s play complexes and arenas. And a miracle – by investing and working on 50% of the efforts that were before, he came out for a year at 100,000 bucks and finally bought himself a sports car, which he had long dreamed of. Well, many other benefits, of course =).
There are such pets of destiny that you have enough time to try something and they succeed. This does not apply to 99% of people.
We offer to present in front of a rod of iron. It is bent to the side, and you need it to be exactly 90 degrees. If you apply an effort just enough to expose it smoothly, it will return to a twisted position as soon as you release it. In order for it to align, you will have to bend it in the opposite direction. Do you agree?
In life, everything goes according to the same principle: if you have not achieved success and experience, you will have to make more than one jerk, but go too far. Literally – to evaluate not one or two directions, but 20-30!
And here a problem arises, if it takes you several months to test one niche, then you can find “that” in old age in order to pass it on successfully to your grandchildren.
Some people manage to spend a year on this process in order to be disappointed in the end.
Therefore, it is better to follow the rule: if you are unable to receive at least one request in one day or to make a sale, this is not your direction.
Today, thanks to the Internet, we have a lot of tools in our hands that allow us to test several options a day. And while not even pay the designer and programmer.
You can do this without even having a website. Simply post an offer on Instagram or give one of the bloggers your product for free.
From paid options – buy a post or make a promo on targeting in Insta. It is not as expensive as you think.
We believe that the result is the product of the following values:
1. You should start with the fact that you pick up about 30 products that could be developed. How to choose them? Think maybe you already have something people need? Know how to photograph, organize holidays or bake cakes?
Do not get carried away with the idea of selling small things from China, we are interested in good products that are in demand and have a high margin.
Maybe someone from your friends or acquaintances produces something? Scrub the phonebook.
You can even use strangers. Just find those who can do, but do not know how to sell and earn.
Meet up with 20 people and tell them:
I can sell what you do. I will take care of the packaging, processing and delivery and will take 20% from each transaction.
So you can generate niches infinitely!
Pass the resulting list through the filters. Start with the regions, as the tractor in St. Petersburg and in Big Panicles have different values.
Next, segment in directions. For example, small and large tractors, agricultural and specialized, and so on.
What happened, should be streamlined and prioritized. Initially, we will pay attention to those that seem easier and closer to you, and so on. But there are those moments that all areas must meet.
There are a lot of aspects, but we will focus on the most important ones:
Simply put – how much will one averaged sale bring. Most often, the efforts invested in both options will be the same, but here the exhaust from a toy and a real tractor will differ enormously.
This is a key factor that shows how much you will end up with the transaction, taking into account the cost. You can sell iPhones for $ 1,000, while having a 0.5% markup, and you can train people in English at home, and only spend money on a notebook and travel, having a revenue of 90%.
A very important aspect is the time that you will need to make a sale from the moment you first meet with a client to cash in hand. If you are an inexperienced player, then it’s no good to look at niches where it takes several months from an agreement to payment. We choose a cycle not more than a month.
2. We use the remaining list to form a list of sites where the product can be advertised. They must be at least 20!
- Instagram bloggers
- Vkontakte group
- Cross-promotion campaign, etc.
3. Those niches that seem to you optimal in terms of promotion opportunities are being tested for an effective proposal. It is necessary for each of them to formulate a proposal, description, visualization (photos and videos), packaging and pricing policies (including discounts and special offers).
4. The final, with the most important and difficult step – is to organize sales. Many people are mistaken about the fact that the more applications, the more money. At first, this is true, but then it turns out that this scheme becomes inversely proportional and the volume of money supply drops with the number of applications.
Based on this, it is important to initially build the model correctly. Below we offer the most common:
- Contact-> sale (for beginners – ideal)
- Meeting-> Commercial Offer-> Advance-> Sale
- Trial lesson / free sample-> sale
- Client base-> master class-> sale
Already at this stage it will become obvious that you have a few of the 30 initial potential businesses that fit perfectly into all requirements. It remains only to make a choice and not to despair, if the first time is not burned out. At least you won’t be wondering “What to do” anymore, just cross out one item and go on to the next one. Successes!