What to Consider when Setting up your Own Niche Business

Job or personal business

Often the best businesses stem from a passion for a specific niche. Do you have an idea that you think would make a great business platform? Start your own business project this year and find out how a niche can turn into a successful business.

Here are a few things to consider before starting a small business. 

Product

Before you contemplate an entire business, you need to nail your niche product. Most products are already available from larger enterprises. However, sometimes these products can be hard to obtain or of poor quality, creating a perfect opportunity for you. Specialise in this gap in the market and build up enough knowledge to answer the more difficult questions. Provide quality advice and information on your business website about your niche through an FAQ section. 

People

Identify your target market and whom you are targeting your product towards. One of the best things about owning a small business is connecting with your customers. While large businesses find it impossible to communicate with every customer, smaller business can add a personal touch to their service.

Consider rewarding regular customers and personalising your service to their specific wants and needs. Talk to your target customer base and build relationships by making regular contact with them. They can give provide you with constructive criticism that will improve your product, service and business strategies!

Marketing

How will people find out about your business? You need to establish a social media presence and educate yourself on social media marketing, smart emailing, and connecting with your customer base. Research the most-used social media platform for your target demographic and utilise it. For example, millennials and Gen-Zers respond to Instagram marketing, while older individuals prefer Facebook.  

Your business’s success or failure may depend on the connections you make with potential customers and clients. 

Process

Once you have a product and customer base, you need to process the sales. Log them in a revenue system, or if you are running your business through a CMS, use that. The most important part of a deal is the delivery and making sure the customer receives the product. It is essential to use a reliable parcel courier service to deliver your parcels and ensure they get to your end customers.

Retain

If you have a high-quality product and friendly customer service team, you will likely retain a customer base. Consider opting for a product that customers will re-purchase again and again.

Ensure your customer service is friendly and well-trained to answer all enquires quickly and effectively. Customers are far more likely to return to your business if it’s easier to order from your business, and any issues can be quickly resolved.  

Surprise Increase in US Retail Spending Leads to Weaker Dollar

us dollar

Despite being the world’s most robust economy, 2020 was a trying time for the US. With more than 787,000 more Americans filing for unemployment, it came as a big surprise for investors that the forecasted growth of consumer spending of 1.1% was eclipsed by the actual spend growth of 5.3%. 

Arthur Idiatulin, a Forex Trader and Financial Practitioner for Tickmill notes that “the retail sales reading tends to underestimate growth, since in early January, American households received stimulus checks from the government, the stimulating effect of which was difficult to calculate.”

This additional pandemic relief money from the government suggests a pick-up in economic activity after being restrained by another surge in Covid-19 infections last year. The largest gain in retail sales in seven months reported by the Commerce Department on Wednesday was across the board, and ended three straight monthly decreases. The acceleration in activity at the start of 2021 was evident in other data showing strong growth in production and prices at factories last month.

While strong growth in the retail sales is a clear signal that the world’s largest economy is growing well, it does mean that the theme of yield hunting remains valid, which has negative implications for the USD.

The US economy’s performance is at the heart of the decision to buy or sell dollars. A strong economy will attract investment from all over the world due to the perceived safety and the ability to achieve an acceptable rate of return on investment. Since investors always seek out the highest yield that is predictable or “safe,” an increase in investment, particularly from abroad, creates a strong capital account and a resulting high demand for dollars. However, the stimulus checks and resultant growth in the retail sector is somewhat of a false economy. 

Currently, stock index futures in the US are trading in moderately negative area, so all in all the demand or USD today gradually weakens. EURUSD is likely to consolidate in the 1.20-1.21 channel with a probable test of the 1.21 level. Lack of progress on vaccination pace in Europe is the main obstacle to appreciation of the European currency, but as soon as the situation in this direction starts to improve, the European currency should be able to resume strengthening against the USD.

While most economists see the year off to a slow start, they expect the pace to pick up later in the year as vaccination efforts spread and the grip of Covid-19 fades.

One of the main concerns for the recovery has become inflation, however, senior Federal Reserve officials have shrugged off concerns that further fiscal stimulus might generate an unhealthy jump in inflations this year.