Find a niche for your business

The biggest challenge any business will face is competition. It doesn’t’ matter if your business is online or not, competition could easily cause your business to go down. Because of competition, you are forced to lower your prices to the point that you do not post any profits. Competing could be an option but if you’re against a giant who can easily cut costs, your chances of success could be virtually next to nothing.

A good option for small business, especially online is to find a niche. A niche could be a specialty on a specific industry which will differentiate you from other companies. Although you work in the same industry; you focus on a single aspect so that you can corner specific buyers. For example, your online business is on selling DVDs but instead of selling DVDs from different genre, you only focus on horror movies. You can even be more specific such as focusing on independent horror films. Because of your focus on this type of movies, fans of the specific genre will visit your store since you provide more titles on that category.

A niche could easily work in an online setting since your online store is not only open to local customers. Your online store is virtually available to billions of internet users worldwide. If you can ship your products internationally, you should be able to use the niche to your advantage. A small consistent sale through niche products is better than no sale at all because of stiff competition.