So how do you go about it? Here’s how:
- Choose a product or service which people need rather than want
- Choose a product or service people instantly understand
- Choose a well-trodden route to market
- Have multiple routes to market
- Avoid high-ticket products or service
- Swap fixed costs for variable ones
- Ask for payment upfront
- Avoid ventures which need to reach a critical mass before they can get going
- Avoid online businesses which rely on advertising to make money
- Avoid online businesses which aim to make money purely from linking to other sites
- How to find a good idea
Look at the products and services you use. Is there something that really annoys you?
- Ask yourself, is your proposed product or service just something people want – or is it something they actually need? And if they need it, how long are they able to put off actually buying it? Just as importantly, do they understand why they need it? If they need it but don’t realize it – e.g.: dental insurance, for example, or carbon monoxide detectors – then you might still struggle to achieve sales.
- Find out more about the industry you are planning to enter – how do customers, whether individuals or businesses, generally pay for the type of products or services you will be offering? Upfront? In arrears? Or mixture of both?
- Consider how you are going to sell your product or service – online, offline, or a bit of both?