Seven criteria of ideal business niche
1. «High resolution»
Here we are talking about your “resolution” in this niche, that is, your level of understanding, your experience, knowledge. For example, if you are all my adult life fond of paragliding, skydiving and other air-extreme things, it is clear that your permission in this area is great, in other words, you are “in the subject.” Accordingly, it will be much easier for you to open an online store of paragliders than an online store of dry mixes for baking.
2. “The suffering crowd»
People need your product. They want it. The statistics of Yandex (http://wordstat.yandex.ru/) many queries on this topic, download the and ask. It is very difficult to sell what people do not know yet. You can, but it is difficult, and it is better not to make such a product the basis of your first business. To create a market for something new is worth trying, only already having a fair business experience and considerable investment.
3. Large average check
You can sell 200 bags of seeds for 20 rubles and earn a penny from it, and you can sell one snowmobile and earn a lot at once. Most importantly, the amount of effort you spend will be about the same (or even more in the case of seeds), but the financial yield is fundamentally different. If you can choose from several areas – it is better to choose the one in which the margin from one purchase will be higher.
4. There are regular customers
The amount of money and effort spent on the search for a new client, many times more than the money and effort that are necessary for the implementation of his re-sale. That is why the niche where purchases are made regularly (cosmetics, clothing, books) is much nicer than the niche of one-time or rare purchases (for example, wedding dresses or custom kitchens). Also very successful niche with the so-called “subscription fee” (for example, IT-outsourcing).
5. Short deal cycle
For the first business, you should choose niches with a short transaction cycle, in which you will make a profit for a time less than or equal to 21 days. Otherwise, you run the risk of “deflate” and sit on the financial stranded long before the first money.
6. Extensive geography
“It’s easy for you, Muscovites – but how do I make money in a small town?”- often asked the inhabitants of provincial cities. To which the answer can be only one: and who prevents you from selling throughout Russia or Ukraine? Choose a suitable product that is convenient and profitable to deliver to other cities, which does not rot, does not take up much space (like toilet paper, for example) and high-margin – and go for it. The Internet knows no boundaries.
7. No reference to the season
Costumes of Santa Claus, designer boots, rubber boots in a flower – all these are wonderful businesses, but here you need to understand well that you will earn on them only in the winter. In the summer or have to look for something else, or put teeth on the shelf. Accordingly, the best niche – the one that has no seasonal declines.