When you initially launch your venture to make money from home, it is absolutely critical that you take a hard, unbiased look at your direct competition. This will aid you in gaining the insights which will be needed. In fact, such an analysis of your competition should be one of the key parts of your business plan. Some of the areas which you should focus on when scouting your competition are analyzing their sales copy, their unique competitive advantage in the market, as well as their advertising. If you do nothing else, make sure that you do not ignore any of these three items as they are critical to your ability to gain market share.
The nice thing about spying on your competition in the early stages of your online business, is the fact that they do not yet know who you are. Therefore, you should never shy away from contacting any competitor directly, and gaining as much intelligence as possible. The truth is that most business owners greet the opportunity to talk about their business with open arms. Just keep it to yourself that you plan to cut into their market share in the near future. You want to allow your competitor to keep their guard down.
Another thing that you must do, is to get a hold of all advertising materials which are being used by your adversaries. Look closely at how they are using these materials, what they are doing well, and what they are not doing so well. If you are entering an industry in which there is a need to ship tangible products, find out how much the competition is charging its customers for shipping and handling, and come up with a plan to undercut their rates, without giving up quality of service. You have no idea how big an effect a few dollars can have on a buyer’s decision when it comes to shipping and handling. This is even more apparent when it comes to first time buyers.
A major reason why you need to assess the competition before entering a niche is to determine if you even want to enter that niche. The truth is that your potential competition may be struggling and the verge of going out of business due to a lack of demand. Many niches may not be populated enough to justify the raw expense of the business. Thus, if you can see this before investing your time and money in a particular industry, you will save yourself a world of heartache.
Contrarily, through your due diligence you may be able to identify what the competition is missing prior to entering the niche. It may be that the business has chosen to focus on a local market when they would be better served expanding internationally. In this instance, you know exactly what you need to do to earn money online in such a niche.
I always like to remind my readers that to make money from home, you have to have vision. You need to see what is possible, and how you are going to bring such possibilities to life before you even get started. Once you have your vision, you need a plan. Thereafter, you need to take action. You do not even leave the starting blocks without action. Make sure that you plan your work, then work your plan. If you have the necessary work ethic, then I have all of the faith in the world that you will make your visions come to life.