Defining a Niche Market for your Business

Business can be a pleasure if we get things right from the start. One of the keys to being a successful business owner is the ability to identify an industry gap and your niche market.   I am sure a lot of us hear about niche markets all the time, internet marketers always advice – find your niche, know your niche!  So is all the hype really worth it?  Yes it is!

In this blog, I want to demystify how you can identify a niche for your business idea or improve on what you have.

The Wide Reach of the Web

The World Wide Web is just as it name implies, a web that collects all sort of information from all over the world.  Cyberspace is versatile and reaches the most remote parts of the earth.  So how do you compete with a business in Mongolia or another in Kenya?

You Find your Niche Market

When you decide to start out in business and if you are like me, ideas might come in drones and crowd your mind with so much information. They might overwhelm you and some people even quit at this stage…yes before they start!  The solution is not to quit but to start your quest by identifying the things that interest you.

If you are interested in motorcars, you may not be able to compete with the likes of Mercedes or Ford Motors. There is a likelihood that you can offer what customers are missing from the big competitors.  Even though they eat the cookies, there are bound to be some crumbs that may fall on the ground. Just imagine if you keep collecting the crumbs every time they get a cookie. Before you know it, you may have a cookie of your own!

Analyse Your Products and/or Services

What do you want to offer?  Is it an area you are very knowledgeable about?  Or is it something you can learn?  Your product may seem like a great idea to you, but will your customers feel the same way?

For example, your product may appeal to mothers but what kind of mothers will your products appeal to, mothers of toddlers, mothers of boys, mothers of teenagers or grandmothers?

Narrow Down your Search

Once you have been able to identify your market e.g. toys for toddler boys. You need to determine the keywords that describe your market.  You can now use the best keyword search facilities to identify how many people search for what you have to offer.  You may discover that there are many people looking specifically for what you have to offer but very little competition.  If the competition is low, you may have found your market.

Revamp a Product or Service

There might be a lot of competition for your proposed product or service, but don’t give up!  There might be nothing new under the sun (According to King Solomon of the bible) but there might be better ways of doing things.  Can your product compliment an existing one? Can you offer an extension of what is currently available?   You should study your competitors and think of how you can make your business unique.

Find the Right Description

When people ask about your business, develop a well thought out description of your niche market. For instance if you are a personal trainer, never introduce yourself as ‘just a trainer’. Introduce yourself as ‘a personal trainer with over 12 years experience of providing Thighs and Abs Training, specialist area being Abs and Thighs training for mothers who have had a C-Section’.    Now you bet people will pay attention! (this may be idea for someone out there).

Identifying a niche market for your business can help it stand out from your competitors.   Before you embark on your business there are other issues you will need to factor in as well. Using a niche market strategy in isolation may not guarantee business success.  But it will compliment your other efforts as you embark on developing your business concept.

Check out my brainstorming sessions – your virtual business partner when you need one.

I wish you good success.

Temi

www.businessfirststeps.co.uk

Photos courtesy of sxc.hu Spekulator and Lockheed.

How to Find A Home Business

I want to highlight some tips to help you wade through the countless offers online and offline on how to make a fortune in no time at all.  Incredible, I know!!! My first instinct when I see those proclamations now  is ‘if it’s that easy everyone will be doing it’.  It’s nice to have an additional income to support your family needs especially in this economic climate.  A word of warning, do not be desperate enough to try anything without carrying out adequate research. 

Extra Income Comes In Handy

I got burnt many years ago by a company that offers toner for printers.  I was looking for an easy to do business to support my regular income.  I got my business cards and everything else organised to start my distributorship for the low-priced toner. The company simply stopped responding after I paid my first instalment. No response to emails (obviously you can’t call them as they don’t have a number!).  I had to cancel my credit card to ensure they stop charging me for service that was never provided. 

To avoid getting burnt like I did, the following tips should help you separate the good from the bad and the outright ugly:

Information Overload

There is so much information out there especially online, it is mind-boggling!  Offers for everything from diet pills to face cream that can make you look ‘40 years younger’.  Most of them also come with a deadline – TODAY ONLY offers!!! You can get lucky and find a business you will enjoy but you aren’t sure if it is a scam.  In order to find the right home business for you, you need to do your own research. 

Once you identify a business you will like to do, find information about them via the search engines. 

Is there any information about the company apart from the one on their website? 

Are there any customer review of their products and services?

Do the people who write the reviews actually exist?

Google is God-sent as you can find almost anything that has a web-entry online. 

Is There a Need for The Products?

Are the products legitimate products or services?

Do they meet a need?  

Do you know people who will buy them?

Is there a sample available to see, feel and touch?

What makes them difference from what is in the market? 

Are they cheaper, better, bigger or simply a lie?

Hello, anyone there!!!

Contact Information

Do they have a website? (Especially those roadside claims to wealth)

Are there valid contact details on the site? 

Is there a person at the end of the phone or an automated response?

 

Guarantee and Returns

Does the company offer any guarantees and what are their return policies?  If you are buying a service returns may not apply, but find out what they are willing to offer if you are not satisfied with the service. 

What Costs Involved? 

What costs are involved in starting up?  Make sure you go through these details with a fine-tooth comb.  Read the information and look out for the catch (if any), do not be too eager and forget to read the small print. 

When you take time to research and read through the information about your choice of business, it will help you make informed decisions. Remember it is also easier to sell things you love so in your search look for products or services you can easily offer to others.   If you are not a coffee drinker like me, I am not sure you will be able to adequately sell the benefits of coffee…except you are an exceptional salesperson. 

There is no quick fix to starting a business online, more likely a quick way to get scammed. 

Carry out due diligence as often as required for every opportunity that come your way. Remember as you get smarter, so do the scammers. I hope you find the right home business for you.

 Wishing you every success…Temi

www.businessfirststeps.co.uk/brainstorming.html

Your Business and the Affordability Factor

Extra! Extra! People are not spending as they should.  So what does that mean for the business owner, less sales? Not necessarily for all of us.  I bet some companies out there are making the recession work for them.  Even though people are not spending as they should, they still have to eat, clothe themselves and do all the basic things to survive. I still have to visit the supermarket weekly whether I like it or not because my household have to eat.

Surfing Above The Recession

So this got me thinking, how businesses can ride the current financial storm?

By providing what people need and not just want they want.

We might not all be able to afford a night out at an expensive restaurant, but a three-course meal at home at the fraction of the price might just do the job.  That is why I love the idea – M&S £10 dinner for two offer.  That means you cut out the babysitter cost too, just wait for the kids to go to bed and lay out a nice meal for you and your partner…fun times!

Can’t do the spa? A lot more people will subscribe to a body scrub that makes you feel like a million pounds at the fraction of the cost.  Gym membership too much for some? An affordable and effective home workout routine might be the way to go. These are the kind of products people will naturally subscribe to – affordable feel good factor, I call it.

Not all businesses have to downgrade their products or services in the recession.  Surely there are still the small percentage of clients that can afford the luxury goods and the usual lifestyle. If that is your niche market, good for you. You should bear in mind that there are probably a lot more businesses clamouring for the attention of the same customer.  So being able to reinvent your products and services should be at the top of your list too.

For the buyers who need to cut back on excesses, think of how your business can meet their needs at a cost they can afford.  Don’t let the recession send your business packing, get creative and develop products and services that can ride the storm.

I will love to hear how you have been able to rise above the recession storm.  Please Get in touch or add your comments.

Business First Steps wishes you every success.

Temi

www.businessfirststeps.co.uk

The List that Matters

The dawn of a new year is upon us and many are writing their aspirations and goals for the new year. As usual I have got a question for you…what really matters to you in life? 

• Is it a Successful Business?
• The Profit?
• The Acclaim?
• The Fame?
• The Experience?
• Being a Person of Influence?
• A Dominant Market Share?

 This list might be part of our Business goals for 2012, but we should not allow our drive to excel and succeed supersede the need to be there for our loved ones.  

As you write your business goals for 2012, remember to make time for those that matter in your life. I am rearranging my own priorities in 2012 too. 

Read the rest of the newsletter here

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The 4 Pillars of a Home Based Business

Starting a home based business is a good option for those who want to have a great work life balance. Care should be taken to make sure money is not poured down the drain in the name of starting a business. People preach the many pitfalls that can be avoided and the wise do take heed and tread with caution.

Is it all Doom and Gloom?

The fragile world economy features in the news everyday and so does how things are expected to get even tougher. A lot of people are anxious about how to support a decent lifestyle. For most families it is almost impossible to cover expenses on two salaries with increase in food costs, household bills and other basic needs. A home based business is a great consideration for anyone who wants to supplement their income or create flexible working hours to meet family demands, get rid of unemployment or solve other issues.

Working from home is a great way to earn some extra income and for some people their entire income comes from their home business. The best thing about this type of set-up is the low start-up costs. A home based business is not as easy as it sounds though; it requires a lot of planning with the right knowledge and skills.

Pillar 1 – If It Is Too Good To Be True It Probably Is

You probably have seen a lot of adverts online about how someone made £10,000 in one day. We will all like to strike it lucky and find that deal of a lifetime. But beware, if you are thinking of working from home, do not get sucked into these false claims of making millions in a few months. There are businesses that generate a healthy profit but think about it, if those claims were true everyone will be doing it. Consider the risks involved before you take up any offer for a home based business. Carry out adequate research about the business before you commit funds to it. Search yourself, if this is what you really want to do or if you are doing it for the love of money. Remember the love of money can only satisfy temporarily.

Pillar 2 – Start With Minimal Cost

Starting a home based business should not cost the earth. Just because you are not renting an office space, does not mean you should blow your budget on a state of the art computer system, an executive desk and a recliner chair with a built in massage service. Manage your budget effectively especially when starting off as money may not come in immediately but bills still need to be paid. Beware of the stationery habit; it can spiral out of control especially for those who work from home.

Pillar 3 – Dream Big Start Small

Don’t bite off more than you can chew when starting a business from home. Consider your working hours, family schedule, space within your home and other important factors before you commit to your customers. Do you have the space to store the raw materials for your products? Can you manage more than 10 clients a month without impinging on family time? These are some of the important factors you need to consider when you start your home based business. Remember your business reputation is at stake if you do not deliver on your promise.

Pillar 4 – Easy Maintenance

Many people who choose to work from home are probably tired of the status quo. So why complicate things even further by setting up a home based business that is too complicated to run. This opportunity should give you the chance to follow your passion and run a business too. Working from home should be a pleasure not another daunting task you hate to wake up to. You should set things on your own terms and within certain guidelines. If you intend to laze about the house and pretend to be working, you might as well stay in your current job. It takes a lot of dedicated hard work to get any business off the ground – a home based business is no exception.

All these pillars might sound like child’s play when it comes to starting a home-based business, but one wrong turn can lead to a frustrating experience. Make sure you follow your passion when starting a home based business and understand the basics of running a business. Consider the 4 pillars stated above in addition to other relevant information when starting out to help you stay on the right track and enjoy the process.

I wish you good success in your chosen endeavours….Temi. 

www.businessfirststeps.co.uk we are passionate about adding value to your passion.

Article Source: http://EzineArticles.com/?expert=Temi_Koleowo

Photos by Ifonono and Lewy2005 sxc.hu.

Analyse Your Business Plan

Hello Fellow Business Owners,

It is always a privilege to be able to write to you.  I enjoy sharing my thoughts and what I have learnt in the world of business start up and development over the weeks and months gone by. 

This week let’s talk about your business plan.  To a lot of people, this is a daunting task that requires many sleepless nights, toiling over what to write about your mission, passion and vision.  Starting and running a business requires constant analysing, planning, changing and adapting.  A business plan however informal is a good place to start your business concept.  Starting a business without a business plan is like going to a new place without a map – surely one is bound to get lost. 

Your first business plan is your perception of what you expect your business to be.  It forms the basis on which you launch out into the business world.  It might contain a lot of expectations, hypothesis and forecast.  When you start your business some of these assumptions will change, reality sets in and you now have to adjust the plan. 

Don’t be discouraged if your business doesn’t go according to plan, pat yourself on the back for crossing the biggest hurdle of starting off!!! Now you need to focus on what works and enhance it. 

Analyse the Plan

At least after the first three months of business you should review your initial business plan, take a critical look, alter what needs to be changed and set a new plan.   

Sales Forecast

What was the initial sales forecast?

 Is the business meeting up? 

If things are not working to plan, do not let it get you down.   You should look at other sources of income for your business.  What commitments can you let go of?  Think of how you can reduce your expenses whilst you work hard to increase business awareness and hopefully more sales.  

Products

If your products are not bringing the expected income for your business,  then think of what you can add to enhance these products so they no longer stand alone.  What will people need in addition to what you provide?  For instance if you have a nail bar, will your clients like a neck or head massage whilst they get their nails done?  Do you have a fast track service (at an extra cost) for those who can’t wait? 

Customers

Are you targeting the right customers?  Sometimes the people we think will buy our products are not actually those who need them.  Look closely at the people that patronise you, what are their needs, what other services do they ask for?  Studying your customers and adapting your products and services to meet their needs is the best route to customer satisfaction and repeat purchase.

There are many aspects of your business plan that needs to be reviewed after the first few months of trading.  Go through the whole plan and ask yourself what should change and what should go.  There are other aspects of the business plan that are worth your consideration and these we will address in another blog entry.  Until then, I pray you are able to rise above the current economic situation and make a success of your venture. 

BusinessFirstSteps provides business plan writing and review service to help you navigate the first steps of the business world. Have a look round our website, we will be glad to be of help. 

I wish you good success.

Temi Koleowo

What is your Business Mode of Transportation?

Hello fellow business owners,  I hope things are working out well for you this week. 

I have been doing a lot of thinking and assessing lately.  Every now and then, I get the urge to reassess my business, my vision, my achievements etc.  What has been coming to me lately is how to streamline what I do, so I can be more effective and provide a better service to my clients. Being able to critically analyse the present state of my business will enable me to choose the right mode of transportation to move my business forward.

Now I understand that many of us like to dabble into a little bit of this and that which is quite common with start-ups.  This might happen for a while as you try to find a good fit for you and your business.  But the time comes when you have to sit back and analyse the past few months of running your business.

What has been good, what has failed, what can you improve?   

These questions will help you decide on the mode of transportation you want to travel in to get to your next business destination. Whatever you do, don’t pay the fare until you are sure of where you want to go. 

Modes of Transportation

Now I have used the various modes of transportation in my business, some have worked well, and some have been a near disaster!

Aeroplanes

We all love to fly so we can arrive at our destination as early as humanly possible.  There is nothing wrong with that if you know exactly where you are going. But think of a pilot in front of a plane who is yet to master his navigation system – a recipe for disaster. There might come a time where you and your business can board or even fly a plane, just make sure you board with your pilot licence i.e. your business growth has been constant and you are ready to step up to the next business level.  . 

Trains                                                                                                                                                                                           This is another mode of transportation we can use as business owners to propel our business vision.  Trains are not as fast as planes – well if you are not on the Eurostar. This may be a better option for those who are somewhat sure of the direction in which their business needs to travel.   There are tracks laid out ahead of you (better understanding of your business), so navigation is a lot easier. Get on this mode of transportation knowing that the stations and stops are far in between (established competitors don’t disembark often).  You may not get as many chances to make amends quick enough, so you must be able to match business demands with supply.  

Bus: With buses, you know as long as you pay the right fare, you will get a reasonable good ride and a cheaper mode of transportation too!  You may not find a seat immediately but as people get off (competitors exit), there are more chances of you been able to sit down.  The same applies to business start-ups – when you get on the entrepreneurial bus, initially the journey starts slowly, and then you can speed up as you encounter bus lanes – these are dedicated routes for your industry.  

The bus may seem rather rowdy initially but if you persevere, you could get a good seat for you and your business (once you know your target market).  But don’t get too comfortable though, due to the frequency of the stops, people will be getting on and off the bus.  Some of these people (competitors) are going to the same destination as you.  You must think of ways to keep your seat on that bus until you are ready to get off and get on a train. 

A good business idea has the potential to grow as long as the owner takes small steady steps in the right direction.  Do not be hasty to get on an aeroplane straight away, travel on a bus to get a good feel of what you business is about. As you do that, enjoy the ride!

Till next time, I wish you good success.

Temi. 

www.businessfirststeps.co.uk