With rising inflation, lack of job opportunites and an economy that is still recovering, more people looking to start businesses to augment their income from other sources. Due to the paucity of funds, most propective entrepreneurs cannot afford to make a mistake when choosing what business to do. If they fail, there might be no funds for another try.
To pick a money-making venture requires carrying out due diligence and a host of other things as shared by Nathan Resnick, the CEO of Sourcify.
People are paying for other products in your niche.
One simple way to gauge whether your business has any potential marketability is to find out what people are already buying. Google Trends is an excellent resource for discovering which topics and products are receiving the greatest level of interest.
Examining trends for a product category over time will provide clear insights as to whether interest is waxing or waning for your niche idea. The more market research you perform, the easier it will be to identify your target audience.
It solves a real problem.
Successful, scaleable businesses try to solve a problem that consumers face on a daily basis. The more integrated (and seemingly insurmountable) a problem is in your customers’ lives, the more vital your solution quickly becomes. Not all problems are created equal, though.
You’ve already made a sale.
It can be hard to gauge whether your product or service will be a success when still working a 9-to-5 job. But, this doesn’t mean you can’t test out your idea on the side. Providing freelance work through Upwork can help you determine if there’s an actual demand for your business services.
Selling homemade items through an Etsy shop will help you find a market for your products. Attempting to make real sales as a side hustle before going all-in on your business will give you a much clearer sense of direction.
You understand the costs.
It goes without saying that some business ideas take a lot more financial effort to get up and running than others. A freelance blogger who works from home won’t have nearly the same type of overhead expenses as a custom furniture manufacturer. It is essential that you understand the costs of your business before launching your product or service.
Your expenses should directly influence your price point and plans for growth. If you don’t have a clear strategy for earning more than it will cost to run your business, you should probably keep your idea on the back-burner.
It stands out from the crowd.
Cookie-cutter ideas rarely become a major success.
Money-making business opportunities have key points of differentiation that set them apart from other companies in their niche. This doesn’t mean you have to completely reinvent the wheel with your product or service. Instead, you need to find what you do better than the competition.
While a truly unique product will certainly stand out, so too will a much lower price point or higher-quality manufacturing. A unique selling proposition should emphasize your brand personality while appealing to your ideal customer. If you can easily identify what makes you unique, your business is much more likely to be a success.
There are never any guarantees when trying to start your own business but that doesn’t mean you have to go in completely blind.