The uncertainty of the global economy has forced thousands of people to the Internet in search of opportunities to generate income from home. One of the popular options many choose is the online business model.
The idea of working a few days a week from the comfort of home and being able to generate envious deposits to your bank account on a consistent basis, is a concept that many people find very attractive.
While there are those who are enjoying such conditions everyday, the reality is entirely different for the majority. They are the ones locked in a constant struggle to overcome frustration and dismal results.
But it doesn’t have to be that way for you. The principles of traditional business apply equally to an online startup, and as with any new venture, before you can work up a head of steam and gain momentum, there’s a learning curve to climb over.
In this article I share three simple tips that will help you avoid the major pitfalls that trap so many enthusiastic but ill-prepared entrepreneurs. You’ll learn how to use these tips like the three legs of a stool to support your business platform.
Tip #1 – Know Your Market
As obvious as that may seem to you, this is where most people make the first mistake. They don’t invest quality time and effort researching and understanding their market. They start out with information that is incomplete or inaccurate and everything falls apart soon afterwards.
Knowing your market is crucial to your success in selling to that market. You’ve got to go digging for information to put a face on that market and learn what it wants.
Here is an example of the kinds of questions you should be asking:
- How big is the market numerically and financially?
- What is the age range of your typical targeted individual?
- Is that individual a male, female, child, adult, or some combination of the aforementioned?
- What percentage graduated high school and/or college?
- How much money does your ideal individual earn per year?
- What are the concerns or problems facing this niche?
- Do these people have money to spend on a solution?
- Are they spending money on a solution right now?
- Are they happy with the solutions that are currently available?
The aim of this exercise is to give you a feel for how deeply you need to probe to truly understand the composition of your niche. Once you have done that, you’ll be in a better position to relate to their concerns and needs.
Tip #2 – Know Your Product
Whether you offer an affiliate product or one of your own, you should become thoroughly familiar with its features, how they function, and most importantly, how they can be used to benefit the user.
Knowing your product means knowing its strengths, its weaknesses, and how it stacks up against competitive brands.
- Is your product more reliable than the competition’s?
- Is it cheaper or more expensive than others in its class?
- Does it solve problems quicker than those currently available?
- Does it offer a benefit that no other product can match?
- How does the guarantee compare to similar items?
- What about customer service and technical support?
This information will come in handy as ammunition to combat your competition in the marketplace.
The final tip puts the icing on the cake and shows how to apply the lessons from tips #1 and #2 to gain a marketing edge and stake your claim in your niche.
Tip #3 – Know How to Market Your Product
Once you truly understand your market and recognize the many benefits your product can deliver to that market, you can begin the process of putting the two together and start marketing your product.
The goal here is simple:
Identify a problem, weakness or need in your niche, and then show why your product provides the best remedy.
Because you are now familiar with specific details regarding your market as well as your product, you can utilize a range of marketing strategies and tactics to match them up.
You can:
- Direct an ad campaign to a sub-group of your niche, such as women or young girls.
- Highlight the cost savings benefit of a particular service you offer.
- Create a video presentation that shows how easily your software performs complicated technical tasks.
- Show how your product dramatically outperforms another brand at a fraction of the cost.
The clearer your understanding of the market/product interrelationship, the more it will feed your marketing insight, intuition and creativity. You’ll learn how to spot trends early and respond to changing conditions appropriately.
Conclusion
Information is power and using it effectively to attain your business objectives is the ultimate confidence builder and money generator.
As long as you continue to apply these fundamentals and keep the relationship balanced, your business will support your passion and vision, and help you make a lasting impact in your niche.