Choosing a business niche. All profitable business niches. How to choose a niche for business? Niche selection: signs of work not by your target audience

Choosing a niche for a business is an unexpected challenge for both an aspiring entrepreneur and people who are already doing business. Choosing a niche for a business directly affects success. If you have gone (already going) the wrong way, then get ready to constantly overcome the difficulties that will appear again and again on the way.

Therefore, approach the choice of a niche consciously: analyze, compare and understand the profitability. This is better than banging your head against the wall and trying to sell a product that no one wants.

Choosing a niche for business - misconceptions and myths

People build their own barriers in business. Invent new products, want to be unique and try to cheat the system.

Some succeed. But 99% of entrepreneurs with an "innovative" product quickly go out of business.

Less competition - more money!

A common misconception is that you should choose a niche where there is less competition. This is fundamentally the wrong approach. Just a high indicator of competition says that money is spinning in this direction.

Turn on logical thinking. Would hundreds of people mess around with a business that doesn't make money? Obviously not.

This leads to the following misconception - customers have already been sorted out. It is not true. There are always clients.
Select your target audience from billions of people and work for it. The problem is not in the number of customers, but in the right offer and a well-developed product.

The business idea must be unique

The choice of a niche for a business depends on the uniqueness of the idea - absurd! Quality of service, demanded product, quick response to market changes, well-organized marketing - these are the basics that will help you grow your business and make money.

Of course it's great if the idea is new. The catch is that it's harder to promote something new. You essentially have to create a market and instill a culture of product consumption. This requires a lot of money. This point is worth considering.

Clients contacted our agency with new ideas and… 50,000 rubles for promotion. We refused them. Since the amount is small and people simply do not request such a product on the Internet.

If you have a new idea that has been tested on other people, then it is worth entering the market through the media, plus promotional budgets for at least 1 year in advance. Or find an investor who will make financial injections into the business for a share of the company.

I like the idea, and so do others.

It's great when a person burns with an idea and is in love with a product. However, here lies the catch. A person believes in his product so much that he forgets about:

• real demand;
• marginality and transaction cycle;
• break-even point calculation;
• taking into account the market trend and analysis;
• payback period of investments in the project;
• analysis of competitors and target audience.

As a result, choosing the wrong niche for a business can lead to problems and cash gaps. The scary thing is that at the same time, the entrepreneur blames himself for the lack of an "entrepreneurial streak", for not being smart enough, etc.

Stress begins, despondency, business closures and ... going to work for hire. Although the only thing that had to be done was to analyze the niche in cold blood.

Make a list of at least 100 niches that you like and analyze each of them according to the following criteria:

• demand;
• marginality;
• transaction cycle;
• complexity;
• investment volumes for launch and payback period;
• market trend;
• the presence of successful businessmen who earn millions in this niche; on how much, on a scale of 10, do you like the niche that you are analyzing.

Pavel Ugryumov

Choosing a niche for business: obvious and non-obvious niches

Niches are divided into obvious and non-obvious. The former are attractive because they are a final and simple product.

The second - complex, which are involved in the production process of the obvious. You can choose either type. Each has advantages and disadvantages.

Obvious Niches

Obvious niches - business on the surrounding things that we see. Take a look around: furniture, cars, real estate, books, and so on. These are end products that are in mass demand.

Advantages:

• easy to understand and quickly delve into a niche;
• established market;
• easy to analyze;
• many requests.

Flaws:

• a lot of competition, therefore a high threshold for entering the market;
• it is difficult to stand out among competitors;
• high risks.

Non-obvious niches

Highly specialized lines of business that are involved in the process of creating the final product. These are components for equipment, chemical reagents, etc. That is, in ordinary life, such products are not found.

Building a business in an unobvious niche is only worth it if you are a master in this direction. For example, you have a higher education in biology, worked in a relevant industry enterprise, and then decided to open a business on this topic.

Another example is the services of a forester, who provides services for the allocation of zones for deforestation in accordance with the legislation of the Russian Federation.

Working for hire, a person received 70,000 rubles a month. He quits because the salary is not raised, but at the same time remains the best professional.

Opens a business and works with a former employer already on a contract basis. In this case, the check is no longer calculated in thousands of rubles, but in millions.

Only a person who has reached the "master" level can advance and earn money in highly specialized niches.

If you try to become only an organizer, you will encounter staff turnover and will not be able to fully control the process of providing services.

Advantages of non-obvious niches:

• much less competition, while the demand for services is quite high;
• low entry threshold;
• minimal risks;
• the possibility of self-pricing.

Flaws:

• you must be a specialist who has vast experience;
• you need to analyze the demand for a highly specialized niche very well;
• at the beginning of the journey, it is quite difficult to earn quickly and a lot.

You learned about the fact that niches are obvious and non-obvious, and got acquainted with their features. Which one to choose? You decide. The main thing is to take into account the recommendations and do a niche analysis before investing money, time and effort in the chosen direction.

Choosing a Niche for Business: Trending Directions

This type was decided to be taken out separately. Trend niches are similar to the obvious ones, but have a number of features. This is where product demand analysis plays a key role.

For example, goods from China are ideal products to sell, but only at the moment when the demand trend for them is at its peak.

This type of niche needs to be entered immediately and done quickly. The task is not to build a stable business, but to hit the jackpot and move into another trending niche.

Let's take a GPS watch as an example. At one time, they could earn millions of rubles in a short period of time.

Now the demand trend is steadily falling and if you want to enter this business, then in 90% of cases you will lose money or hit the breakeven point.

But for electric bikes and scooters, the trend is growing (2018). You can safely enter this niche. The main obstacle will only be finding a reliable supplier who will not let you down.

Advantages:

• the ability to earn quickly and a lot;
• deep knowledge of marketing is not required;
• high demand at the peak of the trend.

Flaws:

• business is not forever - as soon as the trend starts to fall from this direction, you should leave;
• risks - the supplier failed, they did not have time to sell quickly, demand fell and you are in flight;
• the case is not suitable “for the soul” - the main task is to quickly buy, quickly sell and get a margin;
• you need to closely monitor trends, the slightest mistake and you are in the red.

Choosing a niche in business - algorithm and analysis tools

Choosing a niche for a business should start with a demand analysis (this does not apply to unique ideas). In the USSR, the model of the superiority of supply over demand worked. In simple terms - "take what they give."

If you have studied modern economics, you know that demand creates supply, and not vice versa! Trying to impose a product on the market is a path to bankruptcy.

1. Demand analysis

Demand is easy to analyze. To do this, you need to go to Yandex.Wordstat and enter the request of interest on time.

To find out the demand for a purchase, add the word “buy” to the request. For example, "buy an electric scooter." Do not forget to select the region where you plan to sell goods or services.

Find out how to analyze demand in practice from the video in which our leader Pavel Ugryumov will review the Yandex.Wordstat service.

2. Analysis of competitors

Choosing a niche in business is impossible without analyzing competitors. Find out which players are on the market, how much they earn, what promotion methods they use, and what size budgets are allocated for promotion.

Imagine the following situation: you decided to repeat the success of one project, but did not analyze a competitor that receives hundreds of thousands of dollars of investment from America for promotion.

And you have 50,000 rubles to launch. What will happen? With 100% probability, you will fail, because you cannot even be at the level of your opponent.

If you analyze competitors, you will understand whether it is possible to enter the market and whether it is worth it.

Evaluate competitors according to the following algorithm:

• product line - what they sell;
• determine the best-selling product;
• unique properties of the product;
• determine the marketing strategy - what tools to promote / attract customers are used;
• find out the points of contact with the audience;
• calculate the effectiveness of advertising channels;
• check the competitors' sales algorithm (yes, we leave orders, call, buy);
• define sales channels;
• check the chain of work with the client;
• find out the availability of sales scripts;
• determine the average check, the number of applications, sales and market coverage among the analyzed competitors.

The result of competitor analysis

Based on the data received, you will understand what the state of affairs is in the market and whether you can take a piece of the pie. Also, based on the analysis of competitors, conduct a SWOT analysis that will help you stand out from competitors.

If you do not want to bother and waste time analyzing competitors, then delegate this process to our agency. Just click the button below and apply:

Choosing a niche for a business depends on the target audience. Knowing the target audience will help you understand whether you can meet the needs of customers at the level or better than your competitors.

Also, the knowledge and understanding of customers in the future will greatly simplify the promotion and development of business. TA is the foundation of the project. Understanding the pains, fears, desires and needs of the audience will ensure a flow of customers.

If you want to learn more about the target audience, then we recommend that you familiarize yourself with the course: "". To find out more, just click the button below:

* Remember! Anyone who knows the target audience has no problems in sales!

4. Estimate Marginality and Deal Cycle

The choice of a niche for a business is influenced by the marginality of the product and the transaction cycle. These two factors are closely related.

Product margin is the difference between the selling price and the product cost price. In simple terms - net profit from the sale.

Look at how profitable the margin is in the chosen niche. The higher the net profit, the better. But there are nuances with the deal cycle.

The transaction cycle is the time that passes from the moment of contact with the client until the moment of receipt of income. As a rule, the higher the margin, the longer the cycle and vice versa.

For example, a grocery store has a deal cycle of 60 seconds, but the margin is quite low. Another example is real estate. Here the margin is much higher, but the time of the transaction takes weeks or months.

Determine the margin to cycle ratio and choose the option that suits you best.

5. Determine where the soul lies

After analyzing the niche according to dry statistical data, you will get a dozen directions. To choose, we advise you to focus on knowledge and love for a niche. If you start doing a profitable, but not your favorite thing, then nothing productive will come of it.

Love business, love customers! Well, we wish you success, high checks and a lot of positive!

Article rating (5 / 2)

Sooner or later, a person faces the question: continue to work "for an uncle" or try his hand at his own business. Independent business means personal and financial independence, realization of ambitions, status. But at the same time, these are increased risks and full responsibility for the final result. The success of future entrepreneurship is largely determined by the correct choice of a business niche, which we will discuss in this article.

1. Decide on a business direction

Choosing a direction for future activity is the most important step for a novice businessman. No need to rush headlong into the first (albeit popular) idea that comes across. It is necessary to soberly assess not only the prospects of the direction, but also your own opportunities for entering the chosen sphere and developing in it. It is desirable that the niche meets at least one (and ideally all) criteria:

• The chosen direction should be pleasant. A business that you do with pleasure is more pleasant and easier to develop. Many businessmen called themselves happy just because they turned a hobby into a business. As a result, you receive both moral and material rewards.
• You need to have competence in the chosen direction. Even if your niche profile is quite competitive, good professional knowledge and skills should help you take your market share.
• The offered services and goods must be in demand. The well-known formula from classical economics “demand creates supply” is relevant at all times. Of course, there are high-risk areas in which venture companies bring fundamentally new products to the market: in fact, the reverse formula works - the manufacturer creates demand with the help of a completely new product or service. But this option is more suitable as an additional one in the presence of an existing effective business. At the initial stage, the risks must be justified.

2. We evaluate the prospects

It's good when you have a clear idea of ​​what you want to do and how to go about it. But most often, when choosing a niche for a business, throwing between different options begins. Therefore, it is better to make a short list of ideas that, in your opinion, will “shoot” in your execution. With this list in place, you can begin to evaluate each idea more carefully in terms of opportunities and threats.

First of all, you need to understand two things:

• Who is your consumer in each potential niche.
• What are the prospects for each direction.

You need to clearly understand what customer needs your business will cover. Potential consumers are money, and they need to be evaluated using various mechanisms: surveys of acquaintances, thematic forums, groups on social networks, expert opinions. It is necessary to draw up portraits of consumers for each chosen niche.

The chosen area should have development prospects. It makes no sense to invest in a direction that, although it is in demand now, has a tendency to "collapse" in the near future.

3. Weigh our options

The entry threshold is different everywhere, and this is influenced by various objective and subjective factors. When evaluating each promising niche, these factors should be taken into account, even those that at first glance may seem insignificant:

• Competition. You need to understand who your competitors are and what advantages you will give to potential customers. If the offer in a niche is excessive, and you are not ready to offer competitive advantages, then even knowledge and desire will not help you gain any significant position in the market.
• your potential. It is about internal and external potential. Evaluate not only your personal capabilities, but also the capabilities of your environment. A childhood friend can become the first supplier of components, a wife's girlfriend can become a target audience and at the same time word of mouth advertising, an influential acquaintance can become a lobbyist of interests in the chosen market.
• Start-up capital. It is important to understand the source of funding for starting a business. And if for the service sector this will not be the most significant amount, then for the manufacturing sector it is quite decent. It’s good if you have enough of your own funds, but will you be ready to donate someone else’s or borrowed money?

Careful study of all factors for each chosen niche will help to gradate and compile your personal rating of business ideas. And then it remains only not to be afraid to take the first step.

4. We count correctly

Drawing up a preliminary business plan for each idea is a rather laborious, but necessary step. It is important to understand that "the game is worth the candle" because the ultimate goal of any business is to make a profit. Doing business for the sake of the process itself is wrong and will eventually lead to financial ruin.

It is the insufficient depth of immersion and excessive optimism in the calculations at the initial stage that is the main reason for the unprofitability and bankruptcy of most novice businessmen. When calculating, you need to focus on a pessimistic forecast. Even a seemingly promising direction with many unmet customer needs is far from a guarantee of a flow of consumers in the early stages of business development. The path from a potential client to a real one is quite long, and you need to be ready to go through it “in the red”.

When drawing up a preliminary business plan, you need to calculate:

• One-time expenses at the very beginning. This may be the purchase of the necessary equipment and tools, the cost of registering an individual entrepreneur or legal entity, buying a franchise, licensing, etc. These costs are one-time and make up the bulk of the start-up costs.
• Current or monthly expenses. This includes rent of premises, salaries of employees, utility bills, bank services, tax deductions, purchase of components and other costs. You need to look at what you can save on at the beginning, and certain types of work (accounting, website maintenance) can be outsourced. At the same time, you need to have a “margin of safety” for at least three months, and preferably for six months, i.e. be prepared to finance current costs out of your own pocket.
• Income plan or revenue. This is exactly the calculation for which optimism is the main enemy. Estimate revenue prospects based on the lower bound to be ready for reality.
• Supply plan. This is not an actual problem for the service sector, but an important one for production. The production process must be provided with materials and components evenly and constantly.

A preliminary business plan is different from a full-fledged one, but it is quite enough to assess the possibility of entering the chosen business niche.

5. Making the final choice

After going through the previous 4 steps, you will see a more or less clear picture for each business idea. You have preliminary calculations, an assessment of each direction and an understanding of what needs to be done. After weighing the prospects of each idea according to the proposed methodology, at the end you will get a very real niche for your own business.

Be prepared for difficulties in the early stages and be patient: the return on investment is not a matter of one month. But the prospects that open up are worth it to start your own business.

A niche is a small but profitable segment of the market that arises in response to the unmet needs of a particular audience, not yet covered by competitors.

Profitable niches for business is a topic that is relevant for both existing companies and startups at the planning stage. The first seek to rebuild from competitors, the second to find trends that will affect their choice of business.

The bad news is that niches are unstable. And you need to keep abreast of trends in your field to create a truly unique selling proposition. Pay attention to the giants. They constantly “insure” by offering a variety of sets in assortment matrices.

The simplest example: good old Hewlett-Packard once sold equipment that simultaneously printed, scanned, and faxed. At the same time, the company offered devices that performed all these functions separately. On the other hand, it is also not worth it to “split up” and disperse over many niches or create them artificially.

The good news is that we have unprecedented control over targeting. Provided that we know the characteristics of the representative of the target niche, it is easy to find it on the network, attract and lead it through all stages of its digital funnel.

Niche Selection: 5 Stage Process for an Existing Business

Your managers can be as experienced and trained as they want, follow all the techniques, have scripts, but this will not help if the target audience is chosen incorrectly. As a result of this systemic error, further segmentation of the audience and the choice of niches within it loses all meaning.

In general, the business process of choosing a niche, the so-called nicheting, goes through several stages.

1. Analysis of the portrait of the target audience,
2. Selection of several niches within the target audience,
3. Marketing strategy development,
4. Analysis of the dynamics and cost of attracting potential customers in the selected niche.

Niche selection: signs of work not by your target audience

Niche Selection: Determining Your Target Audience

Niche Selection: Target Audience Segmentation

The main step to segmenting your target audience and choosing specific niches within it is the ABCXYZ analysis of the client base.

It allows you to first analyze the customer base by two parameters: the volume of purchases of each counterparty (group ABC) and the frequency of its purchases (group XYZ). The point of the analysis is to place the buyer in one of the volume categories (ABC) and in one of the frequency categories (XYZ).

ABC group:

• A - buys in bulk
• B - buys in average volumes
• C - buys in small volumes

Group XYZ:

• X - buys regularly
• Y - buys irregularly
• Z - bought once

First, this study will answer important questions:

• Who is your ideal customer
• Who pays you more and more
• Where should the sales force focus on?
• Which clients should you refuse to work with at all,
• And in general, do target customers enter your funnel.

Secondly, at the intersection of ABC and XYZ in certain areas, you will see exactly your customers.

Reading time: 10 minutes

We will send the material to you:

How to make the right choice of niche from scratch? This is a topical issue for all novice businessmen. The choice of a niche is very important, because it depends on how your business will develop, whether it will be profitable and promising. So, let's begin.

From this article you will learn:

1. Why is it important to choose the right niche for your business?
2. 12 approaches and 10 main steps for choosing a niche from scratch
3. What are the options to choose from?
4. The easiest way to define a niche
5. What to do if you are completely confused with the choice
6. 3 common mistakes when choosing a business niche

Why choosing the right business niche is so important

Choosing the right niche is one of the main components of success. Even if the supply is perfect, it can be dissipated in light of low demand if the direction is not chosen correctly.

The university curriculum and teaching materials in economics say: "Produce a product that was previously unknown to the market, and you will be rich." But in today's Russian economy, you will only be successful if you find a niche with high demand. It is he who is the hallmark of a correctly chosen niche, and not uniqueness, attractiveness, ethical standards.

The niche should be as narrow as possible. For example, a translator with extensive experience opens a translation agency. He will have many competitors. To occupy his niche, he must opt ​​for a narrower direction (engage in technical translations).

You need to be aware that not only the attractiveness of a niche is important, but also the high demand in it. After a long search, the businessman found a variant of a unique, interesting offer to consumers in the field in which he is a professional. And demand is low. Therefore, the procedure should be like this:

1. Choosing an interesting niche.
2. Studying the demand in it
3. Making a final decision and offering goods/services.

3 reasons why choosing a niche is not an easy decision

Difficulties in choosing a niche are due to the following reasons:

1. Doubt.

To doubt means not to believe in the ability to cope with the topic. Doubt is the norm. You need to be careful about the statements: "This topic is a sure thing." When starting a new project, it is not known what awaits the entrepreneur in a few months.

Doubt can paralyze. You will consider many niche options, hoping to find the perfect one. But, alas, there are none.

Oddly enough, in order to get rid of doubt, one must be wrong. Research and testing will help you. Research does not guarantee you success. The test will allow you to see the real situation.

1. Inaction.

If a person is inactive, he becomes a theoretician. He has a lot of knowledge and skills, but the result is zero.

There is no effective way to deal with inaction. If you do not want to change anything, then you will lie on the couch. In order to start working, you need a good incentive.

1. Theft.

Stealing is the same as sitting on a mine. Some people think that copying someone else's site is a good solution for their business. But every company is unique. Even if you opened the same beauty salon as nearby, you will have other clients, as well as profits.

Every entrepreneur is different.

Not everyone can correctly interpret Picasso's saying: "Good artists copy, great artists steal."

You can take someone else's business as an example, but let its idea pass through your own worldview. Blind copying will not work. Doing business is harder than pressing CTRL+C.

12 approaches to choosing a niche from scratch

Approach #1. Logics

A logical approach to choosing a niche suggests the need to evaluate it in terms of logic and numbers. Only calculations will make it possible to find out whether the profitability of the business will be high, what the profit will be, whether it will be possible to scale the enterprise.

Approach #2. An experience

With the help of a business, you can turn the accumulated experience into a product that is in demand on the market and receive income from its sales. Experience cannot be ignored.

Approach #3. Hobby

If you spend all your free time doing what you love, then it is better to build a business on your hobby. There is no need to be ashamed that you are making a profit for doing what you enjoy doing. You should get high on such a niche.

Approach number 4. People

Focus on the people around you when choosing a niche. View contacts on your phone, think about your friends and family in a different way, maybe one of them is the perfect match to become your partner or supplier. The starting point of your entrepreneurial activity can be a person.

Approach number 5. A family

Why is a family business a great option? What obstacles may be encountered on the way to realizing one's own potential in a family business, and how to overcome them?

If one of your family members is a businessman, then a great option is to become his partner. It is highly likely that the development of a family business will be the work of your life. Many successful companies are family owned (IKEA, Toyota, Ferrero or Auchan).

Approach number 6. barrier to entry

For any business there are barriers to entry. In the same niche, the barrier for different enterprises may be different. Your task is to find such a niche, the entry barrier to which will be insignificant for you.

Approach number 7. Market's plea

When choosing a niche, you may not notice that it is right under your nose. Friends and acquaintances ask you to do something, sell, order, take… Listen to their requests and make the right choice of niche. Perhaps, by starting to sell your product or service, you will satisfy the needs of others?

Approach number 8. Innovation

An innovative idea is not necessarily a perpetual motion machine or a new source of energy. The profitability of a niche based on innovation will be high if the author of the idea learns to earn. As a rule, scientists and creators of innovative technologies do not know how to do this.

Submit your application

Approach number 9. Model

There is no need to develop a new product from scratch. If there is already a demanded product on the market that you would also use with pleasure, then opt for it, refine it, make it more perfect and. If consumers are interested in your product / service, then be sure that you have made the right choice of niche.

Approach 10. Future

Would you like to start a videotape selling business? And why?

When choosing a niche, you need to understand what will be in demand among consumers both in the short and long term. What goods and services will not lose their relevance in a few years?

Approach number 11. benefit, pain

Look at those around you. Everyone knows what pain is. If you manage to rid people of it, eliminate the cause of their irritation, satisfy their needs, then you can gain a foothold in the market and build a customer base.

Approach number 12. Just

What if you have no reason to open a business in any of the niches? If you don't have an explanation, why is it worth doing brick production, construction, catering or upholstered furniture?

Choosing a niche from scratch: 10 main steps

Stage 1. Choosing an affordable niche in the market

You must be able to carve a niche. There is no need to reinvent the wheel at this time. Building market demand is not an easy task. If you want to introduce your product to the market, first test how competitive it is.

Stage 2. Determining your target audience

First of all, you need to decide on the market, identify the target audience segment, and then select a product or develop a new one. Your job is to become one with your customers so you don't have to guess what they want. It is impossible to make a sales forecast for products without preliminary testing.

Stage 3. Analysis of potential customers

Large fish in the pond have a better position than small fish in the sea. Do a comparative analysis of you and the customers in the focus group. The objects of analysis can be: experience, habits, hobbies, interests, the most frequently purchased goods, services.

Stage 4. Analysis of competitors

It is necessary at the very beginning of your activity. In Yandex, enter keywords for the selected products in the search bar. After analyzing the search results, make a list of the top 10 competitors. Evaluate their websites, their sales methods, order forms, delivery service. You can pre-order, etc.

Stage 5. Increasing the competitiveness of the product and choosing a niche for business

Go to the page www.wordstat.yandex.ru on the "budget forecast" tab, enter keywords and analyze the search engine's statistics on the number of impressions per month. You will be able to understand whether sales are going well or not. The "budget forecast" tab allows you to see the cost per click after entering keywords. This helps you decide on your advertising budget.

Stage 6. Development of the slogan and concept of your brand

It is necessary to fit the description of the main advantage of the product in one short phrase. For example, Apple has a concept - "Think globally", MTS - "You know what you can." On the Runet, you can familiarize yourself with various slogans and develop your own.

Stage 7. Determining the pricing policy of the niche

If the client is solvent, then the likelihood of complaints from him is minimal. He rarely asks questions and rarely returns the goods.

Step 8: Use the resale model

This is a classic. This model is the choice of most start-up entrepreneurs, especially the owners of online stores. You make bulk purchases of goods and sell them at a premium. This method is simple, but you will not earn much on it. The first profit is in the hands of a businessman a few weeks after the start. But due to strong competition, there is a rapid drop in demand.

The exceptions are cases when they conclude an agreement for the sale of products with its manufacturer. This is an official distributorship. The resale model is good if you are dealing with secondary products, that is, those that began to be produced after the main one: they do not need to be promoted. For example, it can be iPad cases.

Stage 9. Testing

The most important step. It helps to determine whether the product is competitive, whether there is a high demand for it. In addition, its implementation will allow you to understand which products should be left in the assortment basket, and which ones should be discarded.

Ask a potential customer a question: “How do you feel about buying such and such a product?”. The person will respond positively about him, and you will make an offer: "I have it, and I can sell it to you." Most likely, the person will refuse in a polite manner. But it is precisely by offering to immediately make a purchase that you will definitely be able to understand how viable the product is.

Before the Internet, testing was done by placing ads in magazines. Consumers were asked to call if they wanted to buy a particular product. Analyzing the number of calls and the reaction of potential customers, we made a decision whether to continue the production / purchase of goods or refuse it.

The Internet has made testing much easier. Now you can use tools such as Yandex Direct, Google Adwords. And the possibilities of selling through social networks are almost limitless.

Will help you:

• Studying the activities of competitors.
• Keyword testing with wordstat.
• Creation of an attractive trade offer, development of a concept, a slogan for products and a company.
• Creation of a website with a small number of pages and placement of short advertising in social networks, as well as contextual advertising.
• Liquidation of goods whose sales are not going well; analysis of products with the greatest attractiveness and investments in the most expensive of them, as well as in marketing activities, their scaling.

Step 10: Use the 100% Money Back Guarantee

This tool is very efficient. Guarantee customers 100% money back. Come up with eye-catching slogans, for example: “We will deliver the order in half an hour, otherwise we will have lunch at our expense,” etc.

What are the parameters to choose a niche from scratch

Below are the parameters that allow you to comb out a niche and choose the best option:

1. Margin- the difference between the purchase price and the selling price. If the products are inexpensive, then the margin should be at least 200-300%, not 30%. And if the goods are expensive, then a margin of 10% will be good.
2. seasonality- dependence of sales volumes on the time of year or any events. If you're new to the business, you don't need to opt for seasonal products.
3. Product dimensions. They determine the place of storage of products, the method of delivery. For beginners, it is better to choose niches in which the dimensions will not create difficulties.
4. Delivery period. If the product is running, then ideally it should be delivered within a day. If your choice fell on rare products, then the delivery time will not matter much.
5. Purchase price. Knowing it, you can calculate the amount of the initial investment. Agree that the purchase of 10 TVs will cost much more than the purchase of a batch of 100 cases for smartphones. And the profit can be the same.

There are other options as well. But these are the main assistants in choosing a promising niche from scratch. Make a table in which, for each niche, evaluate all the parameters. Options with the most pluses can be sent for testing.

The Easiest Niche Choice for a Business

All the numerous types of entrepreneurial activity are divided into 3 main groups:

• Production.
• Trade.
• Service.

Any enterprise can be attributed to one of these categories. Work in two or three directions is also not excluded. For example, a company that produces letterheads may have its own network of retail outlets for their sale and provide reporting services. Such a business organization is the most profitable, since intermediaries are excluded from the chain.

1. Production.

The riskiness of business in this area is due to its relative sluggishness. It takes a lot of money to repurpose a company, and training takes a lot of time.

The scale of the enterprise is very important: the larger the production capacity, the lower the cost of production. But with the increase in production volumes, sluggishness also grows. In this regard, there are many niches for organizing a business from scratch in production.

1. Trade.

The consumer must receive his product, so the chain "purchased-sold" attracts novice businessmen, because it seems simple to them. Currently, the density of selling organizations is so high that it is necessary to search for either a new product or new markets for an existing one.

A hint will direct your search: first, during the year, the Moscow market is saturated, after which a new product appears on the shelves of the province. And the Moscow market is one year behind the European and American ones.

1. Services.

This area is a space for creative people. When a person is full, he thinks about comfort. Any business should see customer satisfaction as its goal. This feature is most pronounced in the service sector. In our country, there are many free niches in this category of entrepreneurship.

The reason for this is the lifting of the ban on private entrepreneurship after the collapse of the USSR. Imported goods poured into the Russian market, but it was not completely filled with quality services.

Overview of promising areas of activity in 2017

In recent years, the list of popular business areas with high profitability has changed. Consider the best of them:

Mobile applications

Smartphones have long been considered a luxury, but only a necessity. Almost every company develops its own mobile application to facilitate consumer access to their products or services.

In the modern world, a person daily uses various applications to access mobile banking, taxi services.

It is quite clear that there are plenty of niches in the field of business related to the development of mobile applications. Moreover, this business is profitable.

Website adaptation for smartphones

Statistics say that more than 70% of people use the mobile Internet. That is, we can assume that the demand for mobile versions of sites will only grow in the near future. If you open a business in this area, the question of choosing a niche for a business from scratch will no longer bother you.

Lead generation

The data of sociological surveys show that more than 50% of visitors to many Internet resources come to them from social networks. That is, they are an important link in lead generation.

There are many freelancers currently working in this niche, but starting a business in it is not only feasible, but also desirable. Pay attention to this thread.

Handmade

Now there is a great demand for environmentally friendly goods and handmade products. Everyone wants to have a thing that is one of a kind or made to order, despite the fact that the cost of such goods is usually very high.

If you are a creative person, then feel free to occupy this niche. You will not have competitors in the form of large enterprises. In addition, handmade is a niche with high margins. What can be produced?

Here are the main lines of business:

• Clothing. If you have sewing skills, then you can open an atelier and sew clothes for individual orders. Its demand is high among those who follow fashion, and those whose figure is non-standard.
• Accessories. It can be exclusive leather belts, bags, wallets, purses. These things will be unique and expensive.
• Bijouterie. If you know how to work with polymer clay and are friends with sculpture, then jewelry making is a good option for you.
• Christmas decorations. Before the New Year, the demand for designer decorations for Christmas trees increases. They are very original and have a special energy.
• Dolls. Handmade dolls are of particular beauty and are of interest primarily to collectors. For their manufacture, expensive materials are used. More easy to make Tilda dolls designed for play.
• Interior items. Most people like to complement the interior of the house with unique and exclusive items. Such people become clients of handicraft production of interior items.

This is far from a complete list. Demand for any handmade product will always be high.

Services in the field of medicine

The most popular areas of this niche are manual therapy and massage. It is not uncommon for patients who are disillusioned with traditional medicine to turn to chiropractors or massage therapists.

Investments in such a business are not needed, and it is quite profitable.

In addition, private clinics or reception rooms for narrow specialists are quite popular. To open a business in this niche, significant investments will be required: you will need to hire highly qualified specialists and purchase the necessary equipment. However, this area is highly profitable, so the investment will pay off quickly.

Trade in products

There are people want even in a crisis. Therefore, the profitability of niches related to food products is obvious. If you trade in low-cost high-quality products (for example, meat or confectionery), you will not know the lack of customers.

Delivery

If you have a car, it makes sense to organize a business for the delivery of any goods. It can be products from a supermarket or ready meals from any cafe, restaurant. If you properly organize a business in this niche, you can get a good income.

Education

If you have enough knowledge and experience in a certain area, you can organize training courses. Become a tutor for students of schools, universities in any subject, open foreign language courses. A good option for psychologists and managers is to conduct training sessions.

You can write and publish books, organize seminars, advise the population on various issues.

Repair

Smart owners are in no hurry to throw away broken things and buy new ones. After all, you can repair them and use them for a few more years.

If you have experience repairing household appliances or electronics, you have enough knowledge for this, then opt for this niche. Maybe you are a specialist in reinstalling operating systems, installing various software? Organize a business in this niche direction.

The lack of the ability to repair something is not a reason to refuse to organize a business. You can rent a room and hire qualified staff.

This niche also includes services for the repair of premises. Renting an office when organizing a business in this direction is not required. The main thing is to assemble a team of workers.

If you are completely confused with the choice of a niche

3 common mistakes in choosing a niche for a business from scratch

Many novice businessmen are distinguished by their willingness to devote all their time and energy to the business. In this case, possible risks are ignored. Consider what mistakes are most likely when choosing a niche:

1. Do not rashly grasp at what you like or seem promising. A feature of the Russian economy is the lack of a guarantee that your product will be in demand if you operate at random. The business will be successful if you make the right choice of niche. Systematic, accurate knowledge of the needs of your target audience is necessary. You need to think over the sales funnel and marketing strategy taking into account digital indicators.
2. The second common mistake is choosing a niche from scratch based only on your own idea of ​​the market. Not always what you think is profitable, relevant and promising, is such. Be based on the results of the analysis and statistics.
3. Even at the first stage, the mistake of an entrepreneur is to develop a “packaging” of a business to the detriment of the strategy of its formation and development. Often, novice businessmen develop beautiful websites and landing pages, resorting to the services of the best designers, programmers and copywriters for this, although they do not have a strategy for building a profitable business.

Array ( => 24 [~ID] => 24 => 10.10.2019 18:52:28 [~TIMESTAMP_X] => 10.10.2019 18:52:28 => 1 [~MODIFIED_BY] => 1 => 10.10. 2019 18:51:03 [~DATE_CREATE] => 10/10/2019 18:51:03 => 1 [~CREATED_BY] => 1 => 6 [~IBLOCK_ID] => 6 => [~IBLOCK_SECTION_ID] => => Y [~ACTIVE] => Y => Y [~GLOBAL_ACTIVE] => Y => 500 [~SORT] => 500 => Articles by Pavel Bobylev [~NAME] => Articles by Pavel Bobylev => 11744 [~PICTURE] = > 11744 => 13 [~LEFT_MARGIN] => 13 => 14 [~RIGHT_MARGIN] => 14 => 1 [~DEPTH_LEVEL] => 1 => Pavel Bobylev [~DESCRIPTION] => Pavel Bobylev => text [~DESCRIPTION_TYPE ] => text => Articles by Pavel Bobylev Pavel Bobylev [~SEARCHABLE_CONTENT] => Articles by Pavel Bobylev Pavel Bobylev => stati-pavla-bobyleva [~CODE] => stati-pavla-bobyleva => [~XML_ID] => => [~TMP_ID] => => [~DETAIL_PICTURE] => => [~SOCNET_GROUP_ID] => => /blog/index.php?ID=6 [~LIST_PAGE_URL] => /blog/index.php?ID=6 => /blog/list.php?SECTION_ID=24 [~SECTION_PAGE_URL] => /b log/list.php?SECTION_ID=24 => blog [~IBLOCK_TYPE_ID] => blog => blog [~IBLOCK_CODE] => blog => [~IBLOCK_EXTERNAL_ID] => => [~EXTERNAL_ID] =>)

Text by Irina Nikitina

Photo by Pixabay.com

Choosing a niche for a business is one of the most difficult challenges in the life of an aspiring entrepreneur. The topic is shrouded in doubts and anxieties. We will analyze five difficulties, and you will see that they should not be afraid.

You can do better, but you don't know what

You want to start a business. For a year or even several years. You have come a long way in studying case studies, success stories, examples of business models and ideas. You read educational articles, watch business seminars and follow the success stories of people who have decided on their own business and successfully develop it.

And then you realized that you can do the same, and maybe even better. And, most importantly, you want it. You even have mentally prepared some strategies that begin with the words "And I would do this ...". This is great.

There is only one problem: the niche has not been chosen yet.

Choosing a niche for business: what stops

1. I need a million dollar idea

Innovation is a definite advantage. Truly creative ideas are valued in the market, but they are very rare. It is not clear how then everyone else builds a business.

Watch successful companies: many of them did not invent anything brilliant, but only put new meanings into a simple idea.

Don't worry about the lack of creativity. Sometimes the key to success is not originality at all, but an offer made to the client on time or meeting his needs right now.

And do not think that all the models are already taken, and the ideas have already been sorted out before you. This is not true.

Competition is not something to watch out for

2. I need a competitive niche

You monitor potential competitors, and from the headlines “We have been on the market for 10 years” and stories of successful projects, it gets dark in your eyes. Yes, they are hard to compete with. Probably, it is worth stepping back, closing the tab and starting to look for a model in which there will be no competitors. But the problem is that there is no such model.

The good news is that competition is not something to watch out for. You can learn from opponents, notice the good and bad sides, analyze the target audience. Often, high competition in the market is the key to the profitability of a niche.

3. I want to do what I love, but my hobby will not bring income.

If you think that no one is interested in your hobby but you, perhaps this is true. But what if the world just doesn't know how much your product needs? You won't know until you check.

There are many great, profitable hobby projects out there. Business must necessarily include a competent approach, great determination and a thirst for results. And you can combine all this only in a business that ignites you. If you really believe in what you are doing, then good packaging and positioning will help you.

Business is a lot of opportunities that you can't get anywhere else.

4. I want to develop in different directions, but the choice of one niche fetters me

As a child, you went to a dance ensemble, drew, learned English and wanted to sign up for wrestling, but your mother did not allow it. It has always been important for you to cover as many areas as possible. Now you have grown up, but you still want to know and be able to do as much as possible, while devoting time to your family, having hobbies and developing spiritually. It doesn’t fit in my head how this can be ensured if you choose one niche.

Think about how impossible it is to become an expert in all areas, and by spreading yourself across a bunch of different areas, you will not become a professional in anything. At the same time, the choice of a niche is not a limitation. Business is a lot of different opportunities that you can't get anywhere else. Try to start, and you will see how many-sided experience you will gain.

For a good result, you have to do a lot of unfamiliar things.

5. Before choosing a niche, you need to calculate the market

If you're serious, you'll certainly need to do audience research, trend assessments, customer needs research, and more. These are very important points, and they scare many people.

Yes, for a good result, you will have to do a lot of unfamiliar things. But these things should not scare you and serve as an excuse for procrastination. Don't bother with complicated things, just get started. In 2018, you can become a businessman simply by launching a website or blog.

How to start a business

SuperStart online course is a two-week program from Womenbz.Education to start a business from scratch.

You will find a business idea based on your competencies, choose a niche, analyze the market and competitors, evaluate your audience and create a business model.