This age old question applies to those would be entrepreneurs who want to start a home business. How does it apply? Let me give you some examples. I have many people who attend my home business workshops and they want to make a business out of the crafts they produce. They are very talented and all their friends tell them they should start a business. They sell their products at craft shows, so they come to me to find out how to start a business.
Another attendee to my workshop spent over $18,000 making prototypes of his products. Electrical outlet plates that light up when the power goes out. Other versions are for blind people. When the doorbell rings, a mini speaker in these outlets announce which doorbell is ringing, front or side door. Another outlet is for deaf people. The outlets flash a different color to show which doorbell is ringing.
Both attendees made the same mistake. They created a product and then looked for a market. There is a lot of competition for crafts, so what makes yours unique? What is your USP? Your Unique Selling Proposition!
The gentlemen with the electrical products, tried to sell his products to the big companies like General Electric. He couldn’t even get in the door. No one wanted to talk to him.
The secret is to find what people want or what they need and then give them what they want at at an affordable price and with excellent service. Find the need and fill it! You have to do the research up front, before you design a product or service. You might even find a niche market within the bigger market you want to serve.
Corey Rudyl, one of the most successful online marketers ever found a niche market in Ferrari emblems. Some Ferrari owners were frustrated, because kids were stealing their hood ornaments and wheel cover ornaments to use for belt buckles. The Ferrari horse emblem was a status symbol and cost a lot of money to replace. He found a manufacturer in Italy that made them at a low cost. Corey made a deal with the company and soon had a niche market replacing these emblems at half the dealer’s cost. It became a $100,000 a year niche market.
You may not ever determine which came first, the chicken or the egg, but you had better remember that market research must come first when deciding where to invest your time and money in starting a business.
Dave Romanwww.homeusinessguru.netdave@homebusinessguru.net
Dave Roman has published a home business newsletter for 25 plus years. It is the oldest newsletter of its kind. He also teaches local workshops called "Fire Your Boss - Work at Home" at local colleges, using 7 little known create techniques to create business ideas.
There is also an ebook that goes with the class that is available separately.