Here are a few tips I picked up over the last few years when choosing a market to start a business in (there are a lot of other factors to consider but here are my quick three)
So let’s get into it…
The first thing that you want to do when choosing a market is picking one that you are either A) passionate about or B) interested in.
Think about it, running a business often times takes a lot of work so you at least want to be doing something that you enjoy.
Also, there is a huge emotional attachment that happens when you choose a market you are passionate about or at least interested in.
This emotional attachment will help you push through some tough times but will also keep you accountable.
That way, you have some guilt when you don’t do something you said you were going to do – which I find to be a great motivator for some people.
The next thing you want to do is make sure your market has a history, and also still has some years in front of it before it comes crashing down.
Think of markets such as:
- Real Estate
These markets have been around so they have a proven model that works and will continue to be relevant 50 years from now.
Top Tip: Look for markets that relate to Maslow’s Hierarchy of Needs.
Not so much crypto or bitcoin (new markets with instability).
Don’t get me wrong, new markets are exciting and have some of the biggest opportunities – but also some of the biggest risks.
When you start a business, you want to make sure that you are starting on a strong foundation – rather than one on-top of a sink hole (sorry Florida).
What about competition?
Competition is a good sign that there are buyers! Also, it means that there is an opportunity for you to study the market and come up with a new and better offer than your competitors.
For example, the health and wellness market… every 6 months there is something new and improved that promises AM-A-ZA-ZING results (ahem, Keto!)
So you definitely want to look for a market that has been around but is also going to stick around.
Last but not least, you want to choose a market that has a strong passionate base of people behind it.
For example sports. People love sports!
They join leagues, discuss topics on forums, subscribe to radio shows, have a pre and post game ritual…
You want to make sure that your market has a similar situation.
I worked with a client one time in the home care market. He was passionate about his market and his market has been around for a long time, however, there weren’t a lot of people that were passionate.
It was difficult to get anything of the ground and ultimately made us change our complete game plan around.
Choosing a market that has a passionate fan base behind it also allows you to leverage the most powerful marketing tool of all…
Word of Mouth.
If you can come in with your business and stir the pot a bit, guarantee that there will be people talking about you – which increases people’s awareness of you, your engagement, and more important of all – your results.
Remember, choose a market you are at least interested in, make sure it has both a history and some longevity to it, and that there is a passionate group of people willing to support.