How to Research a Potential Online Business Idea

By Monique Harris

Everyday hundreds of budding Netpreneurs open their Web stores, in hopeful anticipation of making big bucks. And then in the another part of cyberspace, hundreds more are abandoning their online projects, because they believe the Internet gold rush is over.

Is the fever really over? NO! Not even close.

The problem is that most Net business owners neglect to fully investigate an idea before they sink their hard-earned money and time, into it. They jump into an over-flowing pool of business opportunities and affiliate programs, without considering profitability.

In other words, lack of research is what sinks many Web sites.

So how can you avoid this problem, and find the perfect online business? Here are a few easy to follow steps for researching an online business idea:

1) Use Discussion Groups to Ask Prospects "What Hurts?"

I did this a few years ago when I decided to expand my consulting business, and the results were quite surprising.

All I did was join a few business-related discussion groups, and once I had become somewhat of a regular, I posted this question... "What is the most difficult part about doing business online?"

The responses I received were very different from what I assumed to be the greatest problems. Using this feed-back I was able to add services that turned out to be very profitable choices for me.

2) Locate Potential Competitors.

Go to your favorite search engine/directory, and type in keywords for your business. For example if you want to sell dance shoes, your search term would be 'dance shoes.'

Next, write down a list of at least 10-20 of your closest competitors Web sites. Within this list, you can include: what they sell, prices, promotional tactics, etc. This will give you a good idea of your markets climate, and what your competitors are doing.

3) Find Out How Many Marketing Outlets Exist.

Once you have the scoop on your competitors, you'll need to find out where a company like yours can advertise. If there aren't many marketing outlets, you'll have very slim opportunities to let others know about your business.

On the other hand, if there are many outlets, you know that a demand already exists, and you'll be able to readily promote your business.

To see how many outlets exist, you'll want to look for e-zines, informational Web sites, search engines and directories, geared towards your particular niche. It's a good idea to create some kind of database containing this information BEFORE you start your business, so you'll have it for future use.

Monique Harris is the author of "How to Successfully Sell Information Products Online," which features dozens of tips and ideas for creating and marketing e-books, booklets, manuals, audio/video tapes, and other brain food, on the Net. Check out her Sell Your Brain Food! Web site for more information:
http://www.roibot.com/w.cgi?IM6502_MYKS