The best time to decide to become an entrepreneur is always — now. At least, that’s the sentiment behind the recent tide of new entrepreneurs who decided that it’s much better to start their own business than look for employment elsewhere. If you’re a person looking to start their very first business, congratulations are in order. And so are good luck wishes.
Even at the best of times, starting a new business is a task that’s neither easy nor devoid of risk. A lot of it has to do with things that are out of your control, like the current state of the economy. But there’s more than plenty that’s up to you. And it starts with finding a good niche where your business will operate.
The Value of Research
You can find a lot of business ideas simply by reading articles online. You can find out, for example, that joining an existing franchise is one of the good ideas for people looking to make their first step in the world of business.
Doing online research is a great way to get a sense of where your niche might be. However, you shouldn’t be afraid of digging deeper and looking for trends that will point you towards lucrative opportunities.
The research will also help you understand the state of the market for every idea you think you could develop into a business. For example, learning about scrap car prices can help you determine whether it’s a good idea to start scouring your area for dinged up cars you can resell to scrapyards. As you can see, research is something you should be doing every step of the way.
Find a Problem
One of thetricks of successful entrepreneurship is in finding problems and developing products or services that address the problem. If you’ve ever watched an infomercial, you’ll understand this in a heartbeat. Infomercials usually begin by listing problems before introducing a product that solves them. That’s a widely used marketing technique, and it works for business development as well.
Your best bet as a novice entrepreneur would be to find a strong need in your target market and offer a way of fulfilling it. The only problem with this is that, while you’re doing it, there are probably thousands of people who are also looking at the same needs and finding ways to fulfill them. There might also already be businesses that are on the task, so you better be prepared to come up with innovative solutions.
Offer Supporting or Related Services or Products
It’s not always easy to get into a niche market. It’s even harder at the point when it’s the most lucrative — when it’s expanding. As someone who is new to entrepreneurship, you would compete against people who have more experience and resources. However, you can still profit from booming markets without going head-to-head with more established players.
If you’d look at a list of booming industries, you’d probably notice that most of them could use with supporting or related services. Most of them could use someone who works in industry-specific marketing. They might also need help with transportation and logistics. Some would need raw materials, or someone to supply them with specific parts or related products. When you offersupporting and related products and services, you’re still in the business of need fulfillment. It’s just that you fulfill the needs of businesses, not the end user.
Getting the Gears into Motion
When you find a business idea that seems good, the real research begins. As mentioned before, you need to find out how profitable your idea is. You’ll need to size up the market, look for the major and minor players, and figure out what you can do better than them.
If you come up to a wall, don’t be afraid to pivot. Your idea might still be worth pursuing after some minor tweaks. Try to think laterally and look for uncommon ways to do common things. Some of them are bound to work better than what’s already established. If you have a firm grasp on the niche where you want to operate, you will probably notice more than one problem you could solve. Try to pick the solution that will meet your business goals the best.
The fact that you are looking at a niche market will not guarantee the success of your first business endeavor. Niche markets can be crowded and have a high barrier to entry. However, when you do your research well and identify problems you can solve and needs you can fulfill with innovative solutions, you take the crucial step for developing your first successful business.