To have your own business now. The desire to make money novice entrepreneurs often stronger than the desire to create a unique product or fight in overheated market.
Proper niche selection is one of the components of a successful start of the business. It is a difficult task requiring analysis of the current situation and relying on the experience of other businessmen. How to choose a niche in which certainly will earn? What are the criteria while choosing the most important? We talk in this article.
Success niche with a steady demand and lack of supply
Starting a business is to look at the markets, which are characterized by high demand and lack of quality supply at the same time.
In other words, to make a choice in favour of the developed markets without strong competition, the level of which are much lower than, for example, on the mobile payments market, where there are enough strong players.
A well known example: cheap food in Moscow is generally represented in small service points, private stalls with Shawarma, cakes and poor coffee. But there is no online offerings with quality standards and compliance with sanitary norms.
At this point the market come draft Cofix and a little later — One Price Coffee, restaurants with a very simple concept: coffee and light snacks at a fixed cost (60 rubles). They quickly spread throughout the city in places with high traffic (Cofix’s first coffee house was opened in October 2016 in the heart of Moscow in the shopping center “Okhotny Ryad”) and wiping out all the competitors due to the coordinated service system, quality standards and services, the availability of brand recognizable packaging, compliance with all sanitary norms and a really interesting concept.
From this example we can deduce the formula: “a niche in which to open a business = big demand + lack of decent sentences”. Providing the market with quality offer, all this demand you can get.
Undeveloped niche — your springboard for growth
The audience wants to get the goods and services of high quality. Therefore, when entering the market your task is to satisfy this desire. Customers will appreciate it, and you will eventually be able to take a solid share of the market.
The idea is to pick a niche market — to turn the game on its own field, may not be the largest, and then use the benefits that gives his field to any player.
An undeveloped market does not mean that there are no major players
You can enter the market where there is already a strong company, but to use a different strategy (for example, work with private and small orders instead of orders).
Some time with this strategy you will be uninteresting to large players and will be able to develop the infrastructure, build financial assets and customer base.
For example, it may be a niche “freelance” and “privateers”, where they play the role of market players that do not use conventional CRM and lacking the resources to communicate to more than one client.
For example, the Agency Creon: when we were launching the project in 2013, the market was only large agencies that undertook big projects and promotions. They could conduct up to five simultaneous clients, and to maintain a state of about 100 people.
At the same time there were companies that could not go to large agencies because they do not have even a minimal budget. Thus, in this market, has formed a demand and it was not a normal proposal. At the moment we are the only company that had its own service system, segmentation of areas.
Our feature, first, was the separation of duties of employees. If other small agencies one person to be able to focus and promotion, account and events management, and Analytics, and project management, we have such functions were divided between the relevant managers.
Secondly, we had the funds we could invest in the project and thus the availability of timely payment, which greatly accelerated the process.
Third, worthy of marketing-Keith, CRM, automation of business processes and the skills of communication. Thus, in 2013, we grew from two projects per month to more than 100 contracts over the same period.
Another example: is the current market of phones and computer equipment, the demand for them is always there. In this market there are giants such as Apple and Samsung, which offer the most extensive functionality at a very high price. But there is no player that would sell at low cost all those functions, which are all known brands.
And suddenly in 2010 there brand Xiaomi, managed to revolutionize the technology market and in just four years to circumvent in sales of smartphones, South Korean giant Samsung (15 million devices sold in April, may and June 2014 13.4 million Xiaomi vs Samsung in China during the same period).
Brand strategy is much different from the others they began to sell smartphones almost equal to the cost, and their characteristics were close to the maximum that by and large in no way inferior to the famous flagship.
In September 2018 Xiaomi in response to the presentation of the new Apple Iphone XR offered a selection of useful gadgets for the same price they ask for one new iPhone. For one price you can get the smartphone Xiaomi Mi 8, the fitness bracelet Mi Band 3, bluetooth headset and Xiaomi Mi laptop Notebook Air.
So, all the functionality and features of Xiaomi, as well as their promotion strategy has forced buyers to reconsider their attitude to the “established brands” and look at the product of a young Chinese company with no points of contempt.
Business and HYIP
It is not necessary to go to the niche in which the growing popularity of the product is generated too fast, but also fast fading away, there is a demand for your product or your service should transition to a permanent, not fall as quickly as it rose.
Be wary of HYIP-projects: they exist for long, in most cases, from one month to one year. Constantly analyze the market and try to predict what topics will fade in six months, and which will be relevant for a longer time.
So, for example, happened to the market spinners. When they first appeared in Russia, they were wildly popular, bought them, even those whom they do not need. But this excitement did not last very long, less than a year, and about spinners almost forgotten, they ceased to be a HYIP.
If you decide to open a business, you should understand that the ability to find “your” niche in the market and implanted in it the Foundation, the basis for all subsequent actions. And your key elements of success should be:
choosing a market with a low level of competition.
sensitive reaction to any changes of demand and supply in the market;
understanding of the business environment;
the ability to see today what will become clear to all until tomorrow.
Photo and cover photo: Unsplash
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