New Home Based Business Idea: Locate Profitable Target Market

[?] BOOKMARK This Site

OPPORTUNITIES

SURVEYS

IDEA PLAN

MARKETING

TOOLS

5 STEPS

BUSINESS BASICS

LIFESTYLE

Part 2:
For a New Home Based Business Idea: Locate A Profitable Target Market

Your new home based business idea is going to be based on the list of what excites you. Working in one of these areas will motivate you to get through the challenging times of building your business.

How to make sure your new home based business idea is profitable

Now you are going to limit the area for an idea further. This may seem strange, but it is often the overwhelming possibilities that hinder our creativity.

When you become focused, it is a lot easier to find a new home based business idea that is going to be successful.

Shift your focus outward. Is there a market? Are there people who will want to purchase off you and what are they looking for? With the internet, market research has become easy, fast and free.

MY PERSONAL VIEWPOINT
When you are working out if an idea or your existing business are profitable, you need to factor in what your expectations are.
This is different for everyone. In general, we are all looking for income, but apart from that one common goal, our expectations vary widely.
Personally, I tend to work out (crudely at first), how much time I would spend for the return, and how that then translates into an hourly rate. Is it worth it? Could I do better by getting a regular job?
Then I consider the "trade offs" if you like to call them that. These are things that I gain from working at home, even though I may be earning less (in the beginning) than if I had a job.
For example:
being home with the children before and after school
attending school events during the day
going to the gym at off-peak times
no sitting in traffic

going on holiday and still being able to operate my business
For me, these are all worthwhile things to factor into my profitability. They will be different for everyone.

However, if I am honest, there may also come a point at which you may have to accept that your business may never be profitable enough - even if you are achieving your "trade-offs".

Step 1: Check Search Traffic

Most people use the internet to search for solutions to their problems. We all do that by using keywords or key phrases.

What you want to know is how many people are searching for your key phrases. There is a great free tool for checking traffic. Go to SEO Toolset, put in your first key phrase and press ‘Calculate Activity’.

Be patient, it takes a while. Then it will show the daily search activity. Type in your other key phrases one by one and in the end you will have a list of your key phrases and how large the search traffic is.

Anything above 500 is fantastic. If you get less than 100, it is worth discarding this area.

Note: Your results could be skewed if your market does not use the internet as extensively. Use common sense.

One or two of your passions will probably have an outstanding amount of search traffic. Concentrate on those and let the others go. Remember that this is about narrowing the options down to the best and most successful new home based business idea.

Step 2: Find the Money

A further essential ingredient is that your market has money. There is no use developing a great service or products if no one is willing to spend money on them.

Use Google for a first quick test. Put your key phrase in and see how many paid advertisements appear along the top and right hand side of the results (it says Sponsored Links). If there are more than 5, it is a sign for a thriving market with businesses making money in it.

Step 3: Check your Competition

Unless you are planning to start an internet business, you need to check in your geographic area as well.

Check the yellow pages, whether many competitors are advertising. Talk to them and get a feel for how well they are going. Look at their websites, visit their shops, and see what they are offering.

Important:Do not be put off by their big ads, large offices, and professional teams. You have the chance to find a profitable niche. Remember, this is Part 2 and there is more to come before your idea is ready to be put into action.