If you decide to start a business, identify the niche in which you would like to start your business. There are many opportunities in the market, there are many attractive ideas, but you have to think about which business is right for you.
How to choose a niche
The first step is to decide whether you are planning to do retail or wholesale. By choosing retail, you will be selling products in small quantities directly to consumers. Wholesalers buy products from manufacturers and sell them to businesses and other distributors.
Secondly, decide how you plan to work - as a franchise or starting your own business. If you buy a franchise, you are buying the right to sell the goods or services of the parent company in a specific area. In addition to the franchise fee, royalties must also be paid. You must comply with the terms of the franchise agreement, which often accurately describes how the business is run.
An independent business, unlike a franchise business, will have to be organized and developed on its own. When you start a job, you can get the freedom to make decisions that you might not get from franchising.
Third, decide what you are going to offer - a product, a service, or both. If you are a professional in a specific field, your business can develop around the services you provide. In addition, many professionals also have the ability to sell products related to their activities. For example, a photographer can realize photographic paper, frames and cameras.
If you do not have professional skills, start your own business in the field in which you are talented. You can start a business selling information materials, teaching people certain skills. It doesn't matter which type of business you choose, you have to deal with sales anyway.
Fourth, you need to decide if you need a showcase. It may not necessarily be a store, a website will be a good showcase. To increase the number of sales, it is recommended to use both tools - to open a website and put up goods for sale in a store.
For consultants and coaches, it is enough to open a website with a description of the services. There is another option - to organize your business in such a way that your products are sold in other stores. If you choose to provide services, you can provide them at home. The range of possible occupations is wide - from cleaning the premises to landscaping the adjacent areas.
Fifth, you need to choose an industry. It's good to start a business in a niche that you not only like, but in which you have work experience.
Further steps
After you've tested your idea against the five points listed above, make a list of businesses that meet your criteria. It is worth removing those from this list that you cannot do, for example, due to high capital intensity or low profit.
After you define your business, do some market research. This will help you figure out which business can bring the most profit. This is exactly what you should do.
