World is changing rapidly, creating a huge array of opportunities and business ventures that you can invest. The purpose of this article is to highlight many of the areas that you should consider when developing a successful project.
Selecting a profitable niche
The entire lifespan of the project depends on the project idea that you have in your mind. When you come up with a brilliant idea, that doesn't mean that you are ready to start! There are a couple of other things that you need to research about your idea.
1. Draft your idea
If you just came up with your business idea, start thinking about the big picture of your idea. Think of the areas that your business idea can link with and the areas that your business idea poorly or is at a risk of linking. Think of the ways that you can earn profit from this idea if it is a profitable venture.
For example say Alex come up with an idea to create a social network for the scouts. Now, Alex start thinking about how far this idea can go. He has following in his mind.
- There are a lot of scouts in the entire country in different schools. I could provide my social network to all of them
- I can help them to create the scouting events and allow full event covering through my project.
- Scouts can share their blogs, photos and expeditions with the world through this project.
- I can charge for paid advertising for scout’s related items, event covering through the project.
2. Create your big picture
After you have drafted your project idea, the next step is to identify what kind of a project idea is that you are having.
Now you need to clearly identify your project with respect to the following areas.
- The scope/business area of your project.
- The general target audience of your project.
- A rough idea of the project usage/cost.
- How the project makes profits?
For our virtual example, Alex gathers following information
- Business area of the scout network are the schools, scouting societies, scout equipment providers, scouting locations
- The general target audience becomes the scouts, scout leaders and teachers, principals, businessmen
- Since Alex hope to provide this to his country, he found out that there are annually 500,000 school wide scouts and around 200,000 businesses and institutes are linked to the scout network.
- Alex thinks of monetizing the project by advertising, sales commissions and by providing event hosting.
After this analysis you will understand the size and complexity of your project. Important thing to note is that you can not gather these information all of a sudden and will require time. It is also a good idea to discuss with someone well known with the business area about the business idea.
3. Deeply research about your project
This is a very important part in your project. Without a proper research, your project will end-up with no profits or could create you loss over time.
Now that you have the big picture of your project. It is time to research about the project.
- Strictly define your target audience
- Research on the marketing trends of the project
- Research about the competitors
You need to identify the target audience for your project very well. This should be very specific. Research about the age groups, gender distribution, the habits, problems, current way of doing things in your target audience,
For example : Alex identifies that 80% of the target audience are the school aged males and females with a smart phone. Alex also finds out that the remaining 20% are over the age 30, business minded and guiding people.
You also need to research about the marketing trends of the target audience. Tools like Google Trends will help you find the market trends with comparison tools and much more.
For example: While research Alex identifies that the target audience is mostly interested in the Camping and there are abuse cases, First aid area are getting more search volumes over time
Competitor Analysis is a must to do analysis if you are doing a successful project. You need to research about how your competitor deliver the services, what weak points they have and the success stories of these competitors.
For example: Alex finds out that there are several social networks that helps scouts to share and connect but none of them are specifically targeting scouts. He also finds that there are online businesses that sell scout products. There are scouting websites for individual scouting societies in schools.
On the next article, we will discuss on how to further analyze the business idea by doing questionnaires and surveys.