|Written by Greg Soffe|
We have all heard the big business people of the world tell new entrepreneurs with a business startup to 'Think Big'when getting ideas for business or starting a business, any business. One would do this by harvesting investors, using life savings, selling a house etc. Usually all that ends up from this kind of exposure is an amount of unneeded risk in your life and a lot of sleepless nights. While there is generally nothing wrong with the think big approach as it can and in some cases actually does lead to vast wealth, for the first time entrepreneur that is wanting to replace a current income or stop working for "the man", the financial risk injected by these larger ventures can be too much too hard and too scary. Especially if you are supporting a young family with your first mortgage.
The one great thing the internet has to offer us is the ability to be a multinational operator from our living room armchair. The problem with that is, you are not the first person to have found this out and starting that online book store may not be the very best choice to quit your day job for. Competing with the big players directly on their terms may be able to generate you a little income but it would more likely see you back at your day job, loathed to try anything remotely businesslike again.
One of the keys to avoiding this initial think big failure is to 'think small' after all you are just starting up, you are small.
Take your base idea and break it down to its most primary components. Pick one of the components, find one that you can most readily attain and supply, that is easy to ship and store. Pick that component and break it down again, once you have done that consider selling that component alone.
For example if you were considering opening up an online cosmetic store. Cut that down to selling brand cosmetics, and then cut it down again to discontinued brand cosmetics.
Why would I want to do this I hear you ask? By putting your business into a niche market you are dramatically cutting the other online competitors you are up against. This has the result of increasing the number of people visiting your fledgling online business and in turn your sales numbers.
"Cosmetics" has about 68,900,000 competitors on the internet, where as 'discontinued brand cosmetics' only has 1,800 competitors and people searching for these items are very, very likely to buy when you have what they want.
Unfortunately any professional will tell you there is a little more to it than that. To avoid failure you will need to ally yourself closely with a good web development firm who is familiar with niche business and making your online business search engine friendly to fully capitalise on niche marketing.