I've talked to a lot of people who have found a promising market by coming up with a product or service that would solve a problem. But they're paralyzed about taking the next step. What if they put in the time and effort -- and possibly money -- and it flops?
There's one process they're missing. Validating your market after you've come up with a niche business idea is a crucial step you can't afford to skip.
Of course, there's no way to guarantee success, but ask yourself the four questions below. If you can check off every one, you'll know -- as much as possible -- that you're onto a winner.
1. Is there a demand for your product or service? You need to make sure there are enough potential customers out there to keep you in business.
Are people trying to solve this problem on the Internet and not finding a suitable solution? If you've done keyword research to find a niche market, you should already have a good idea about this.
Don't overestimate the numbers. Just because you think every cat owner in America needs to buy your revolutionary cat bed doesn't mean everyone will. A good number to use is 2%. If 2% of the visitors to your Web site become customers, you'll be doing well.2. Is there any competition already supplying the market? Search for your top keywords and look at the rival sites that come up. What do they sell and how do they make money?
Most sites you find won't be actual competition -- they may just have some related content or be luring traffic for the sake of advertising revenue.