Choose the right niche before start a new online business.

 

Choose the right niche before start a new online business.

 

 

 

This article will discuss how to choose the right niche to sell in your online shop or start your online business. In addition to that, you will get basic academic knowledge and theoretical knowledge about the market environment and strategic plan.

 

Market environment and strategic plan before start your online store

 

Before you start a new online business, you should think about the market environment. What is the market environment? The market environment can be divided into three points in a business.

      Internal Environment

 

     

  Those are

• Internal Environment
• Micro Environment
• Macro Environment

Internal Environment

 

The internal environment is fulfilling with the Strengths and weaknesses of our business environment. So you can change these strengths and weaknesses by yourself. As an example, you can create a Shopify store yourself alone, and It is your strength. If you have no idea money to start an online store, it will be your weakness. So what you have and you don’t have your internal environment. 

Example - Men, money, skills, machines, materials, etc.

Micro Environment

 

Micro Environment is the environment that we can’t handle by ourselves according to our decisions. But, there is a chance to change some things and make opportunities by making some agreements. As an example, we can take there is a wholesale supplier in an online marketplace. You are about to purchase many items, and you can discuss and make an agreement about the price, quantity, and time durations. 

Ex - Suppliers, Competitors, Intimidators, customers, 

Macro-environment

 

Macro-environment is the most outer environment, and you can’t handle this environment, and you have to adapt to this environment. As an example, you can’t manage the economy of a country. You have to pay dollars at any rate for your business expenditures such as web hosting bills, Store bills, etc. 

Ex – Political, Economic, Social, Technology, 

The macro and micro environments are based on Opportunities and threats. If the dollar rate is increasing, it is a threat to your online business. If an online shopping platform gives an offer for new business shop owners, that is an opportunity. 

In the above points, we have taken a basic knowledge about what you should Concern before starting your business. Now let’s start talking about Strategic Window (What and when)

Strategic Window

 

In this topic, I will talk about what type of business is trending at what times. For example, if you are going to sell Cool water or Cool soft drinks in the winter, you will probably fail. As another example, If you are going to sell Hand sanitizers, Face masks or Face visors when there is a global pandemic, you have a significant opportunity to sell your items. This is why we should think about the above points. 

Now let’s talk all above by taking an example.

 

Imagine someone is going to sell Handcrafts online. He has skills to make hand-crafts, and two, three employees work as hand craft makers. So, the talent and those employees are the strengths of this person. But when he is going to pay for an online selling platform, there is no considerable money to spend for this at the start. This is his weakness, and he can fulfill his requirement by starting an entry-level package or service that charges at the end of a business. 

When he enters the online selling platform, there are thousands of hand-craft competitors from all over the globe. This situation seller can be taken as a positive thing for you. If there are thousands of hand-craft sellers, there should be millions of customers who love hand-craft. So you also have chances to sell your product. This is an opportunity for you. Some customers are going for cheap products. So at the start, you can adopt it and sell your product for lower price and collect some good reviews. 

 

Let’s see someone is going to start a new business. But this person has no idea what he should do. So he has to think about the above environments. What kind of product should I sell? What kind of customers should I target, and how much profit can I earn. Suppose someone is going to sell power tools online. It is a good trend these days, and he can make his niche that power of sale tools used for day-to-day life such as portable stoves, Small blenders, an Onion cutter, Omelet mixer, mobile desk, etc.

 

 Then he should carefully think about the price of the product. Where can he sell this for this price or can’t it? After getting the profit, can I pay shop bills and other expenditures? How much money can I keep with him?  

 

If he purchases these products t from another country and sells them to customers who live in his country, He should be concerned about the dollar rate. If the same product in the market is cheaper than your price, the customer goes for it. Maybe that cheaper item was purchased a long time ago, and the dollar rate may lower at that time. 

 

And he has to promote this product. Personally, I recommend online promoting, and the seller can make his store go viral by expanding his brain.

 

Read - Online advertising forecasting and targeting

 

By taking about the strategic window, many experiences is faced by matured businessmen. As an example, The NOKIA Company used to make smartphones and decided to use Microsoft mobile operating system as their operating system. At that time, Android mobile phones were top-rated, and people bought those phones and get used to them. Because of that, There were millions of android apps, but there were no more apps, developers for NOKIA. People were expecting android apps and many features. So the NOKIA used to sell Nokia Android phones from2017. But they are too late. When they enter the market, there is a good market leader and many market challengers and followers. So this is why you should think about what you should sell and when you sell it. 

 

This article is a brief explaining of how to choose a business niche before starting an online business. Maybe you also know more examples and experiences. Please share those with us in the comment section. 

 

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