BusinessCoachingJune 25, 20220

Validate Your Idea through Competition Research

Every industry has fierce competition, which makes running a business more challenging. As a result, you must research and get to know your competition in order to validate the ideas you choose.

One of the primary advantages of a digital business is that it is not restricted by geographical limits or harsh local rules, making it incredibly simple to start. However, the disadvantage is that it does not make business management any easier.

Here’s why

Supply and Demand!

The demand and supply concept governs any business. Supply will increase in lockstep with demand, and vice versa. This means that if there is enough demand and your organization is capable of meeting it, you may supply and profit. On the other hand, accommodating supply makes no sense if demand for what you deliver is insufficient. Because of the strong demand, a single diner in a neighborhood, for example, is likely to succeed. However, if a community has too many diners and not enough people to fill them, most will fail.

Similarly, in order to exist, a digital firm must have adequate demand. Businesses can coexist; but, the more they coexist, the smaller the pie becomes, and there is suddenly less for everyone. The harsh reality is that if there are a sufficient number of competitors in a niche, and some of them have acquired a sizable market share, it will be tough to infiltrate or take over a portion of it.

Examine competitors to establish the market size and whether they are currently meeting the needs of your target audience.

If others are doing what you intend to do in the same niche, your business will have a difficult time acquiring traction, let alone becoming a screaming success.

 

A Sub-Niche!

It is unlikely that the niche you choose for your online business will be completely free of competition. If there are already established businesses with sizable market shares and devoted clients or audiences, you can select a sub-niche or niche within a niche.

For example, if you target food, cuisine, or anything else in the culinary niche, you can try to explore and locate subsets that existing players have not yet analyzed. If this is not an option, you must identify your strengths and use your authority to carve out a sub-niche within the niche.

In the end, it’s all about the value you can provide to your audience and how you can help, change, or enrich their lives. You can’t compete in the same industry as your rivals.

 

Download the Spero Startup Checklist Here to assist you as a new online business owner.

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