11. Three tips on picking a business idea
The business ideas we’ve discussed might be easier to manage when it comes to logistics, but it doesn’t make them convenient. There are at least three things that you should bear in mind when you weigh your options, no matter what you plan to begin with.
Focusing on a niche would make marketing simpler
As with every company, marketing is the secret to your success. It’s not enough to realize that there’s an appetite for your products — you need to find out how to reach out to customers who are more likely to purchase them. You need to get the right visitors to discover your items.
Fortunately, marketing is much simpler when you appeal to a particular demographic or personality (e.g. vegans, game lovers, photographers in your city). You can create social media content that resonates with these users, or you can run advertisements that target their interests. Taking this approach actually lets you project a cohesive brand and you’re going to get a more precise understanding of who you’re referring about.
Think about how you can zero in on a particular audience for your goods and how they can be supported by the company you create. If you already have a large audience (a blog, a YouTube channel, or an Instagram account), you may also be able to find a way to base your company on the current audience.
Pricing is more than profit
Price your goods too low and shoppers will think they are of low quality. Price them too high, and some of your customers may be scared off. In any case, you’ll need to find a sweet spot that also lets you factor in the cost of buying customers and providing discounts, particularly if you’re planning to pay for ads.
For many of the business ideas we’re going to discuss in this article, you might not be shipping your inventory, but you do need to cover shipping costs. Remember the shipping costs and how variable they would be in the different countries you choose to represent.
Many online retailers are trying to make their shipping costs into their selling price so that they can provide free shipping, or at least a competitive flat rate. Others concentrate on enticing shoppers to add more products to their cart with conditional free shipping (e.g. free shipping on orders over $50) to increase their profits.
Test, learn, and develop while you’re going
The pursuit of excellence can be one of the greatest obstacles to get a company up and running. Bear in mind that there’s nothing set in stone.
Items can be exchanged in and out fairly easily (especially if you’re not stuck in stock). Your store could be revamped. You can change your rates. You could turn to a better supplier. And you can justify all of these decisions on the basis of hundreds of signals you have at your disposal (traffic, how much time people spend on your platform, ratings, abandoned carts, etc.).
If your idea just doesn’t work out the way you’ve expected, think about how you can recycle before you leave.
There are parts of your company that you can still save if you try a new product or strategy. The brand you’re investing time in the building, and the followers you’re amassing on social media, or in your email list, could be assets you reinvest in your next business idea.