Read This to Chose The Best Niche for a Business

The Simplest and Most Concrete Method for Choosing a Niche for a Business

Evgeny Shleenkov, founder and CEO of the Bumblebee Center for Entrepreneurship Development, co-founder of the construction company Eurodom, owner of the coffee company DiMaestri, business coach and business consultant, wrote a column for us about choosing a niche.
Choosing a Niche is the First Step in Business Development

The most common question I hear from beginning businessmen is: “What is the most profitable (better, more interesting) thing to do?” This is the same as asking: “And what profession to choose to be rich (happy, prosperous, and so on)?”. There is no universal tool for choosing a niche for a business. This is a personal decision and a personal path for everyone.

However, I understand where these questions come from: today there is so much information that it is impossible to understand what is still missing in this prosperous and goods-filled world. And if you take the field of online sales, then at first glance it seems that the network has everything.

What we just do not offer, and what kind of colorful sites do not lure. And how in all this diversity not to become one of the millions? Once again, there is no magic pill. Business is an organism and how he will behave in your particular situation is difficult to say. But there is analytics, experience, and a set of knowledge that will help make a balanced and, most importantly, informed decision.

A niche is the foundation of any business. As the sailors say: whatever you call a ship, it will sail. So it is here: the choice of a business niche often determines its success. People spend a lot of money and effort in advertising and marketing, and as a result, they don’t get the right response. And the reason is the wrong niche.

Because if consumers are not ready to buy your product today, no colorful website and newsletter will help. They just don’t need it today and that’s it. Therefore, at the very beginning, seriously approach the issue of choosing a niche.

Remember, your chosen niche must meet three main criteria:

1. The Product Benefits

In this case, the product is a more extended concept, it can be either a product or a service. Today, we are increasingly moving away from selling physical things to solving problems or fulfilling people’s desires for their own money in the best way. Today it’s not enough just to buy cheaper, sell more expensive. The market is so crowded with goods that it’s almost impossible to value.

Dumping will ruin your business. And your goal should not be only the desire to sell, but to realize exactly the right thing or service and those who really need it. Price has long been an advantage. Your main task is to understand the benefits that you sell, what it gives people. There is a wonderful film on this subject – “Pursuit of Happiness”.

The main character is desperately trying to sell medical equipment that people simply do not need. Or it’s necessary, but not to those whom he called. The story ended well, by the way. However, in real life, such errors lead to big losses and disappointments.

2. The Product Must Cause Emotions

Our brain consists of two hemispheres: the left and right. The first is responsible for logic, the second is for emotions. In the first case, you can convince your customers to make a purchase, by comparison, USP, a story about the benefits, expert opinions, and so on. People, in this case, evaluate you and your product, compare with competitors, find the pros and cons. In the second case, you cause emotions. A person sees your product and wants to purchase it. There is no reason or they are too abstract: I want everything because it’s cool. Women often buy clothes and shoes based on the left hemisphere.

Therefore, we often hear similar phrases: “I saw this dress and realized that it was mine,” “These shoes are from that magazine.” A friend of mine who drives the last Bentley once told me: “Those who never buy it are the best people to understand this car. I knew absolutely nothing about this model, I just needed one look to understand that I want this car. ” The price here is very secondary. If you really liked a thing, you will not ask the price.

3. You are an expert in a Selected Niche

The rule of thumb is to understand what you are selling. If you still do not know the selected product well, study. Today, you don’t even need to get up from the table: there are a lot of training videos on the network about everything. Otherwise, your incompetence will be calculated immediately.

The consumer is not a fool, he just does not want to spend his money, so you will just have a flurry of questions, half of which you simply do not expect. You should not only know your product, but also the chosen niche, the features of competitors, all possible alternatives, technical capabilities, history, and so on. It is impossible to know everything. However, if you decide on your job, be exacting first of all to yourself. Amateurs can be seen immediately and this greatly reduces the level of trust.
Also, the following points are very important:

4. Do not Purchase Goods in Advance

A very common mistake among novice businessmen is a large investment. If you think your product is a bomb and everyone wants to buy it tomorrow, do a test. Make an announcement on Avito and see what the response will be. Or ask friends and acquaintances, it would be interesting for them to buy this product. The McDonald brothers once worked for hire (yes, and that was once with them).

They realized that the time spent on lunch could be used to good effect. Instead of visiting the restaurant, they began to take a quick snack with them – a bun and a patty. As a result, lunch was reduced by 40 minutes, at which time they made calls. As a result, performance improved. After the first prize, colleagues themselves began to be interested in the recipe for success. So they came up with the idea of ​​”fast food”.

Later there was the first restaurant and waiters on roller skates. Ideas for business are prompted by life itself. And if you are sure that the new Chinese phones will definitely blow up the market, try to collect at least the first twenty prepaid orders and only then make a purchase. Otherwise, it may turn out that no one needs the phones right now since the new Samsung has come out and will only have to dump.

5. Solve life sSituations. Do not try to “steam”

A very important point is the ethics of your communication with the buyer. Do not try to sell your service at all costs. Go from the opposite – why can they turn to you for it. Pay attention to the most famous brands. They do not sell themselves, they sell the idea. Of course, Apple is the clearest example when selling technology turns into a lifestyle sale. Today this whole philosophy, fashion trend, unquenchable classic.

All together and in one small phone or laptop. They sell us technology that can make our lives easier, and communications fast. We choose a convenient, and most importantly functional design. And of course, the left hemisphere turns on! Such an integrated approach to the sale of its products has made the company a leader!

6. Learn The Trends, Catch the wave

There is another concept – this is fashion. The phenomenon is very controversial and ambiguous, and also transient. Sometimes the lifetime of one trend is only one or two months. But competent salespeople make millions on this. Today the trend is environmental friendliness. Green won and filled with the postscript – eco, and bio – all around. Today we see eco-coats, eco-cars, eco-food. People stopped eating meat, which led to the appearance of countless bio-markets both in reality and online.

Another trend is local marketing: local food, local designers, local hand-made markets, and so on. In fact, today you can easily make money on anything made by yourself. On New Year’s Eve – it can be handmade garlands, by March 8 – bouquets of vegetables, in the summer – designer smoothies from celery and oak bark.

Imagine, try it yourself, do not be afraid to create things with your own hands: the more it looks like a hand-made one, the faster and more expensive you sell. Be in the trend and do not remember, everything has its own term. Especially in the modern world.

7. Use analytics

Before you buy a product or open your online school for anything, study the market. Recently, novice businessmen are based on Yandex Direct. The method is good, but not always true. Remember, a search query is not a sale. Very often, the performance of a famous person on TV or bright advertising generates a surge in requests for a particular product.

For example, you are offered to buy a car for only 300,000. And you enter a model in the search engine and compare prices. It becomes interesting to you how much this car costs up to. As a result, there are thousands of requests for this car, but this is only a temporary activity and not the fact that the car is at the peak of sales. I would recommend watching analytics on coupon sites.

If you go into past promotions, you can see at what time and what services were sold. Really sold, you know. A search query is simply a search for information; it is far from always a purchase. See real analytics, where you can clearly see what kind of product and how many people bought it. Only in this case can we talk about the demand for a particular product.

Take your time to earn. Emotions only harm business. Be extremely careful and prudent. Today you can sell everything, even air from the Himalayas. There would be a desire and there would be a demand.

Therefore, before running to conclude an agreement with suppliers, test what you want to sell, conduct an in-depth analysis, and be sure that you already have the right number of orders for the successful implementation of the first batch. Take your time and believe in yourself and your product. Good luck

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