In our experience in the online or e-commerce business sector, we have spoken to many people who want to begin to trade online. One of the biggest failings of people wanting to succeed in this area is their failure to work out a detailed plan of how to go about it. Any planning must start with a clear understanding of the market to target.
The first thing to do must always be to start with the market that you wish to target and then "work back" in terms of what needs to be done to put in place the necessary machine to make it work. By machine we mean the means of bringing whatever it is you eventually decide t sell to the means of putting it in front of your potential customers.
What market should you decide to prospect in?
The best advice here is to remember the credo of many big companies in the marketplace. That is to "follow the money" Look for the areas where people are spending money especially in difficult economic times. This does not mean looking only in those areas where people are shopping only for bargains. In reality this can be very counterproductive as these areas are populated by customers who are very price sensitive.
Instead look for areas where people spend their money to make themselves better in recessionary times. Look for areas where people follow a passion or very strong interest. When times are hard, people want to be relieved from the day to day gloom. People will still spend money on their pets. In fact there is a growing trend to own pets in both the U.S. And the U.K. Recent statistics show that people still want to get married. Many people who are unemployed will still pursue their hobbies. A useful exercise is to actually walk down any high street on a Saturday and see what types of shop are busy.
Whilst there, take a look at any shop selling magazines or periodicals. As many people will initially buy a magazine on a topic that interests them or a new hobby they are thinking of taking up. What types of magazine are these shops devoting expensive shelf space to. Ask your local newsagent what types of magazine are popular at the moment. Talk to friends and neighbours and ask them how they have changed their shopping habits. This and other types of research is worth its weight in gold - quite literally.
Peter Robson is an accountant with over 30 years experience in the small company sector. With his business partner, Debbie Crossley he runs a company helping people set up and run e-commerce businesses. For more information go to http://www.yournichebusiness.co.uk/
