Frequently Asked Questions About Niche Business
Determining your business niche is a critical decision for any business.
What business niche is easiest to enter when starting from scratch?
The one where the number of franchises is growing. Within this approach, the entrepreneur gets the opportunity to work under an already established brand and has access to its equipment and technologies.
When purchasing a franchise, two payments are usually required:
lump sum - a one-time payment granting the right to use a trademark;
Royalty is a regular payment made to the franchise owner on a monthly basis to support the business.
Should you start your business in popular niches?
It is not recommended to enter afghanistan phone data niches where demand for a product grows too rapidly, but also quickly fades. It is important that interest in your product or service becomes long-term. Beware of hype projects, which usually have a short lifespan - from a month to a year. Constantly conduct market analysis and try to predict which trends can quickly become obsolete, and which will remain relevant for a long time.
What method will be useful for choosing a business niche?
The concept of “red and blue oceans” was developed in the book “Blue Ocean Strategy” by Chan Kim and Renee Mauborgne. Red oceans represent traditional business niches where all the terms, players, and target audiences are known. In these areas, there is intense competition, and even with significant demand, profitability remains in question. Examples of blue oceans include Uber, which has disrupted the ride-hailing market, as well as capsule hotels and self-service car washes, which are reimagining established concepts without offering fundamentally new products. Determining a market niche is a critical decision for any business.
A successful choice can ensure profitability and long-term development, while a wrong step can lead to serious losses and dissatisfaction.