Most internet home business entrereneurs fail when they start their internet business because they make one large error.
Entrepreneurs find a product to sell on the internet before researching the market potential (also their profit potential)
Before deciding on a product to sell on the internet, successful internet entrepreneurs need to find an underserved niche market.
Once they think they have a profitable business idea for their niche market, market research must be done to ensure this is really the case.
So if you want to avoid the deadly mistake that causes the majority of Internet startups to fail, follow these three essential steps.
Step #1: Make a list of your interests and passions
Internet home business entrepreneurs are more likely to succeed if they base their business on something they have experience on or expertise in.
After all, if you're not passionate about what you're doing, you simply won't find it as enjoyable -- and you'll be less motivated to stick with your business and do the work necessary to grow and improve it. So before you even begin to find an untapped niche of hungry customers, you should brainstorm your interests and passions... and let them guide you!
Unique skills and interests can come in a surprising variety of forms. For example, knowing how to pass the exam required to become a firefighter is a skill on which you could base a business. So is quilting, or collecting model trains, or kicking a bad habit like smoking or biting your nails. But a lot of people find it difficult to think of their own unique expertise.
You should sit down and create a list of all of your jobs, hobbies, interests, volunteer work and any challenging situations you have overcome in your life. You will see this is a good place to start...don't be modest!
Pick out the areas where your particular interests lie. Once you have this narrowed down to a few different areas you will be ready to do your market research.
Step #2: Find a niche
Think small if you want to find big profit when starting your internet home business.
Specialized, underserved niche markets can be a source of large profit streams online.
An online niche market is a group of people who are looking to solve a common problem and not finding many or any useful results.
People do not usually go online to buy (at least right away), but to find answers to a problem.
The basis for your successful internet home business will be when you find the group of people who are looking to solve the same problem without much luck. This will be your "hidden treasure".
But you've got to think small. If you start with a large, general market, you'll likely find it saturated with competition.
So be patient and explore all the possible avenues. You've got to drill down, down, and down again -- until you finally strike gold!
How will you this kind of market?
You can find out exactly what people are searching for online by using a simple tool, such as BeBiz. Are people searching for your potential product and not finding it? You may have just found your niche!
By starting your internet home business this way you will know there is a pocket of eager customers who need your product...even before you spend any time or money creating the actual product! You next need to validate your market before rushing off to create the next hot product.
Step #3: Validating your market
To validate your market you need to confirm it has profit potential. Can you actually make money from it?
To find out, ask yourself these four key questions:
1. Can you easily reach and define the market you are validating? Most potential market groups will have a place they congregate on the internet. Use places such as forums, discussions boards, club sites and online groups to analyze exactly who your potential customer is.
You will have a much better idea if your market will be likely to buy from you once you know who they are.
2. Is the market big enough to be profitable, but small enough that there aren't many competitors?
If you find there are lots of well established, well funded and well supplied competitors in your market...get out! You want to find a small pond but it needs enough fish to make your efforts profitable. If there are too many competitors keep looking for a more precise and smaller market.
3. Are your customers willing to spend their money with you?
You need to know if these people actually buy stuff... so it's a good sign if there's some competition already selling products to the market. You'll have a much harder job selling to people if there are too many free products or free sites available.
4. Are they passionate enough about the problem they're trying to solve that they're willing to spend money on your product?
You want a potential market that is so passionate about their interest that they eat, sleep and breath it. They will want ALL the information they can get on the subject.
Think about video gamers or antique collectors... their obsessive passion is a big reason those markets are so profitable!
Final thoughts
You need to follow these 3 steps when starting an internet home business. You will be able to create a business you are passionate about if you find a niche market based on your experiences. You can be confident your internet business will be profitable if you validate your market BEFORE you create a product.
This is a simple, but proven formula...it will set you on the road to success with your internet home business.
Entrepreneurs find a product to sell on the internet before researching the market potential (also their profit potential)
Before deciding on a product to sell on the internet, successful internet entrepreneurs need to find an underserved niche market.
Once they think they have a profitable business idea for their niche market, market research must be done to ensure this is really the case.
So if you want to avoid the deadly mistake that causes the majority of Internet startups to fail, follow these three essential steps.
Step #1: Make a list of your interests and passions
Internet home business entrepreneurs are more likely to succeed if they base their business on something they have experience on or expertise in.
After all, if you're not passionate about what you're doing, you simply won't find it as enjoyable -- and you'll be less motivated to stick with your business and do the work necessary to grow and improve it. So before you even begin to find an untapped niche of hungry customers, you should brainstorm your interests and passions... and let them guide you!
Unique skills and interests can come in a surprising variety of forms. For example, knowing how to pass the exam required to become a firefighter is a skill on which you could base a business. So is quilting, or collecting model trains, or kicking a bad habit like smoking or biting your nails. But a lot of people find it difficult to think of their own unique expertise.
You should sit down and create a list of all of your jobs, hobbies, interests, volunteer work and any challenging situations you have overcome in your life. You will see this is a good place to start...don't be modest!
Pick out the areas where your particular interests lie. Once you have this narrowed down to a few different areas you will be ready to do your market research.
Step #2: Find a niche
Think small if you want to find big profit when starting your internet home business.
Specialized, underserved niche markets can be a source of large profit streams online.
An online niche market is a group of people who are looking to solve a common problem and not finding many or any useful results.
People do not usually go online to buy (at least right away), but to find answers to a problem.
The basis for your successful internet home business will be when you find the group of people who are looking to solve the same problem without much luck. This will be your "hidden treasure".
But you've got to think small. If you start with a large, general market, you'll likely find it saturated with competition.
So be patient and explore all the possible avenues. You've got to drill down, down, and down again -- until you finally strike gold!
How will you this kind of market?
You can find out exactly what people are searching for online by using a simple tool, such as BeBiz. Are people searching for your potential product and not finding it? You may have just found your niche!
By starting your internet home business this way you will know there is a pocket of eager customers who need your product...even before you spend any time or money creating the actual product! You next need to validate your market before rushing off to create the next hot product.
Step #3: Validating your market
To validate your market you need to confirm it has profit potential. Can you actually make money from it?
To find out, ask yourself these four key questions:
1. Can you easily reach and define the market you are validating? Most potential market groups will have a place they congregate on the internet. Use places such as forums, discussions boards, club sites and online groups to analyze exactly who your potential customer is.
You will have a much better idea if your market will be likely to buy from you once you know who they are.
2. Is the market big enough to be profitable, but small enough that there aren't many competitors?
If you find there are lots of well established, well funded and well supplied competitors in your market...get out! You want to find a small pond but it needs enough fish to make your efforts profitable. If there are too many competitors keep looking for a more precise and smaller market.
3. Are your customers willing to spend their money with you?
You need to know if these people actually buy stuff... so it's a good sign if there's some competition already selling products to the market. You'll have a much harder job selling to people if there are too many free products or free sites available.
4. Are they passionate enough about the problem they're trying to solve that they're willing to spend money on your product?
You want a potential market that is so passionate about their interest that they eat, sleep and breath it. They will want ALL the information they can get on the subject.
Think about video gamers or antique collectors... their obsessive passion is a big reason those markets are so profitable!
Final thoughts
You need to follow these 3 steps when starting an internet home business. You will be able to create a business you are passionate about if you find a niche market based on your experiences. You can be confident your internet business will be profitable if you validate your market BEFORE you create a product.
This is a simple, but proven formula...it will set you on the road to success with your internet home business.
About the Author:
Derek Gehl, CEO of The Internet Marketing Center teaches over 1.8 million Internet home business owners per month on how to create incomes of $100,000 to $2.5 MILLION or more per year online.
No comments:
Post a Comment