On the other hand, if others are making money at it but you have developed superior marketing skills (and you’ll know the difference if you take the marketing courses), then you’ll know that you can enter this market with an advantage and you’ll do very well.
Show proof that there is money in the market you are thinking about. Submit a screenshot to your teacher. (You can use Ctrl + PrtSc [PC] or Apple + Shift + 4 [Mac] to capture your screen and save it into a Word document.)
Full marks will be given for successful submission of screenshot that shows there is money in the market for your stated product or service.
Next we have to see if there is money in the market for your specific idea. First temporarily turn off your Ad Blocker and then go to www.Google.com and type in your area of interest. We might consider the search phrase “beauty products”. Along the right side, and at the top, we see all these people paying money to Google to place an ad there. People will only place ads there if the ads pay for themselves. There are a lot of ads there so there’s a lot of money.
You might be tempted to think that you should compete in an area where there is no competition. This is generally a mistake. If people are interested in a product or service, there will be competitors. Finding a niche without competition should make you very wary about trying to start a business there.
I have a very, very smart friend who did just that. He has run several companies successfully in the past and has made millions of dollars. A few years ago he went into a new industry and hired a company to canvas the neighborhood and see if people might be interested in his new service.
The response was an overwhelming yes. They loved the idea. However, when he opened his business, these same people who said they were interested didn’t come. It was difficult for him to determine the reason why people didn’t come. Maybe it was his location. Maybe his service was too expensive. Maybe his timing was wrong.
If people aren’t willing to pay you for what you’re offering, then you don’t have a business. If you don’t see other people selling a similar item or service, you might get lucky, but please beware: Either the lack of competition is because there’s not enough need to support the idea or, just like my friend, you might be ahead of your time.
Section 5: Research
Step 5: Profit Potential
Step 5: Is there money in the market?