Niche identification is finding a product or service you wanted to sell in a target market. A simple way to identify niche is answering the questions what do you like?. Then answer the question what can I do to help others like me who like what I like? What do you like ? I like arts and crafts. What can I do to help others like me who like what I like ? I can provide Origami Instructions and Diagrams. From those 2 answers you can workout the below conclusion. Origami is my......
Continue Reading
The initial investment is also known as a start-up cost. This is the amount you need to start your business. This is a sum of all costs involving setting up all the essentials for your business such as rent advance, office supplies, website & domain name costs, etc. This is the money you will need to have before the first day your business becomes operational and live. Types of costs Costs can be classified based on the nature of the cost. The cost can be one time or periodic, direct or indirect, essentials......
Continue Reading
A niche is a specialized part of the market where you should dominate sale and market share. For example, if you like pets then pet collar can be your specific market niche. If you think pet accessories is your niche then you are being very general and can lose focus. Identifying your niche must start with specific item and then you must start working your way up till general items. For example, sell dog collars until you dominate sales and market share then start offering dog clothes. After selling dog clothes for a......
Continue Reading
Fixed cost Fixed cost value does not change and has a predictable value. Most of the cost you see in a contract are fixed cost. For example, the rent advance in a rental agreement is a fixed cost. Another example of a fixed cost would be the signup bonus mentioned in a CEO’s offer letter. Monthly rent, monthly utility bill, wages, etc are fixed costs because these are predictable and does not change based on usage. Fixed costs include ongoing costs such as utilities, wages, monthly software licensing, etc. Variable cost This is......
Continue Reading
Essential cost Essential cost is the cost that is mandatory to conduct business. For example, if you are a chief doctor in a group practice setup then your annual professional registration fees become an essential cost. Without paying the professional registration fees you are not eligible to practice medicine. Hence this becomes an essential cost. If you are a cab driver then your car insurance premium is an essential cost. If you are a plumber working as an independent contractor under your own business name then liability insurance premiums paid every month to......
Continue Reading
Direct cost Direct costs are expenses that a company can easily associate to a specific item such as a product, department or project. This item could be a software or a piece of equipment or raw materials or it could be even a product (department or project) specific labour. The direct cost for an item will help you with profitable product pricing. The direct cost will give you an idea of how much you must charge for your products and services. For example, you are charging 20 pounds for a microfiber cloth for......
Continue Reading
One-time cost This cost is the cost you pay only once. Rent advance, paying your CEO a signup bonus, incorporating a company, equipment rental security deposit, one-time equipment purchase are examples of one-time cost. Ways to reduce one-time cost in business If one-time cost is higher for your business then you can split this over the forthcoming months. For example, you could negotiate signup bonus disbursement for your CEO along with his monthly paycheck. Another example is you could take a personal loan to pay for rent advance such that the amount will......
Continue Reading
Before you invest time and energy into selling something you need to check to see if there is a market for what you are planning to sell. Market research is where you gather as much as possible information about your target customers and their preference. You are going to see if what you are planning to sell will have the expected reception in the market from prospective buyers. Test your business idea Try to sell your products to friends and family or a small group of people in a very controlled environment. Testing......
Continue Reading