How to choose a niche for business
Successful business management is largely dependent on the scope of activities in which a particular entrepreneur operates. To achieve planned results and maximize profits, you need to know how to choose a niche for a business. The correctness of this choice depends on:
job satisfaction (the greatest joy is the possibility of development in an interesting field of activity);
the level of financial well-being (you can earn a decent reward only if the prospects and profitability of the chosen direction);
the term of work within a specific type of activity (lack of conditions for effective business leads to financial losses and the need to change the chosen sphere).
Criteria for evaluation
Before choosing a niche for a business, you need to evaluate it by the following parameters:
the level of self-interest in working in this area (productive work at the first stage is possible only if one’s own maximum involvement is involved);
potential profitability (the lack of material benefits will lead in a short time to a loss-making enterprise);
correspondence of personal experience and knowledge to the chosen niche (without the necessary basic information, it is difficult to carry out a competent construction of all business processes);
the possibility of creating a unique offer (for the dynamic development of business, the products offered to customers should differ from similar options in certain parameters);
payback period (the longer the business reaches the level of self-sufficiency, the more additional financial investments are required);
the amount of start-up capital (each business sector assumes its own level of costs necessary for a good start; for example, the services sector usually requires less investment than production);
complexity of technical implementation (organization of work in any niche is an individual process, the simplicity of which directly depends on the chosen direction; for example, high-tech developments require appropriate facilities, equipment and qualified specialists, and often provide a telephone and a computer to provide consulting or mediation services);
the presence of a team (an entrepreneur focused on long-term work, when choosing his niche, should take into account the need to select appropriate professionals, as well as consider the possibility of further delegation of authority);
competitiveness (it is necessary that the business created has certain advantages that allow it to outperform the competition);
demand (the chosen niche should be interesting to the target audience).
To understand how to choose a niche for a business that can bring maximum profit, you need to pay attention to the preparatory work. Its main stages are:
selection of several dozen options;
analytical selection of the most attractive and profitable niches;
involvement in the assessment of the real prospects of acquaintances with experience in business or conducting a survey through social networks;
eliminating options that have not received support from friends or survey participants in social networks;
determining the popularity of a niche in terms of the number of queries in search engines (for example, using the word-picking service of Yandex on wordstat.yandex.ru);
test announcements of their activities through ad sites, company directories, social networks, etc.
In the process of determining your niche, you need to allocate time to analyze the competitiveness of the chosen direction. The budget solution to this issue is to independently monitor the market using the Internet. Assessment of the chosen niche regarding the ability to exceed the existing offers in something suggests:
work with specialized regional forums (to ascertain the assessment of competing firms from the target audience of a specific geographic area);
analysis of competitors’ sites (to understand their business specifics, competitive advantages, as well as the principles of self-presentation as part of the announcement of activities through web resources);
use of social networks (to search for productive ideas and analyze the level of satisfaction with similar proposals).
The areas of activity that are always in demand and interesting to potential customers include the following categories:
beauty and health (cosmetology, hairdressing, work on the image, fitness, means for losing weight);
children (early development, various types of education, raising children);
finance (intermediary services, consulting, lending).