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Characteristic and That's Worth Marketing To
Characteristic and That's Worth Marketing To
Make a list of things you do best and the skills implicit in each of them.
Look for patterns that reveal your style or approach to resolving problems.
Your niche should arise naturally from your interests and experience. For example, if you spent 10 years
working in a consulting firm, but also spent 10 years working for a small, family-owned business, you may
decide to start a consulting business that specializes in small, family-owned companies.
3. Describe the customer's worldview. When you look at the world from your prospective customers'
perspective, you can identify their needs or wants. The best way to do this is to talk to prospective customers
and identify their main concerns.
4. Synthesize. At this stage, your niche should begin to take shape as your ideas and the client's needs and
wants coalesce to create something new. A good niche has five qualities:
1.
It takes you where you want to go--in other words, it conforms to your long-term vision.
2.
3.
4.
5.
It evolves, allowing you to develop different profit centers and still retain the core business, thus
ensuring long-term success.
5. Evaluate. Now it's time to evaluate your proposed product or service against the five criteria in Step 4.
Perhaps you'll find that the niche you had in mind requires more business travel than you're ready for. That
means it doesn't fulfill one of the above criteria--it won't take you where you want to go. So scrap it, and move
on to the next idea.
6. Test. Once you have a match between niche and product, test-market it. This can be done by offering
samples, such as a free mini-seminar or a sample copy of your newsletter.
7. Go for it! It's time to implement your idea. For many entrepreneurs, this is the most difficult stage. But fear
not: If you did your homework, entering the market will be a calculated risk, not just a gamble.
Franchising:
Franchising is the practice of using another firm's successful business model. The
word 'franchise' is of Anglo-French derivation - fromfranc - meaning free, and is used
both as a noun and as a (transitive) verb.[1] For the franchisor, the franchise is an
alternative to building 'chain stores' to distribute goods that avoids the investments and
liability of a chain. The franchisor's success depends on the success of the franchisees.
The franchisee is said to have a greater incentive than a direct employee because he or
she has a direct stake in the business.
Essentially, and in terms of distribution, the franchisor is a supplier who allows an
operator, or a franchisee, to use the supplier's trademark and distribute the supplier's
goods. In return, the operator pays the supplier a fee.[2]
Thirty three countries, including the United States, and Australia, have laws that
explicitly regulate franchising, with the majority of all other countries having laws which
have a direct or indirect impact on franchising.[3]
Advantages of Franchising
1) Lower Failure Rate - When you buy a franchise, you are buying an established concept that
has been successful. Statistics show that franchisees stand a much better chance of success
than people who start independent businesses; independent businesses stand a 70 to 80
percent chance of NOT surviving the first few critical years while franchisees have an 80 percent
chance of surviving (Michael M. Coltman, Franchising in Canada: Pros and Cons, Self-Counsel
Press).
2) Help with Start Up and Beyond - You get a lot of help starting your business and running it
afterwards. Many franchises are, in fact, turnkey operations. When you buy a franchise, you get
all the equipment, supplies and instruction or training needed to start the business. In many
cases, you also get ongoing training, and help with management and marketing. Your franchise
will reap the benefit of the parent company's national marketing campaigns, for instance.
3) Buying Power - Your franchise will benefit from the collective buying power of the parent
company as the franchisor can afford to buy in bulk and pass the savings along to franchisees.
Inventory and supplies will cost less than if you were running an independent company.
4) Star Power Many well-known franchises have national brand-name recognition. Buying a
franchise can be like buying a business with built-in customers.
5) Profits - A franchise business can be immensely profitable. (Think of Macdonalds and Tim
Hortons, for instance.)