It’s tough coming up with online business ideas, much less the best online business idea for you.
How many business ideas do you have?
Probably a lot.
But even if you’re at a loss for ideas, you still want to know if the ideas you do have, or are about to have, are profitable ones, right?
So how do you know?
Here are the things that will help you decide if an online business idea is right for you and if it will be a profitable one.
The Best Online Business Idea Come From Looking at the Market Demand
How much demand really exists for your business idea?
The only way to really find this out is to use a reliable keyword tool.
As an example, let’s say you’re interested in selling designer handbags. To find out how much demand there is, let’s go to Google’s keyword tool and simply type in ‘designer handbags’.
The results show us that the term itself gets over 400,000 searches a month. That’s substantial, so there’s potential, but because there are so many searches a month, the idea is popular, meaning you can be fairly sure that the competition is high as well.
For this reason, you will want to drill your idea down so that you can reach more of a ‘niche’ market. So ask yourself ‘what about designer handbags’? If you go back to your keyword research tool you can qualify your idea.
For example, you can drill down your idea with any one of the following:
- Italian designer handbags
- Used designer handbags
- Authentic designer handbags
- Rent designer handbags
- Vintage designer handbags
- French designer handbags
These are smaller niche areas but they will capture a more focused area of the larger market. The farther down you can drill in your niche, the more focused your audience will be and the more sales you will make
That’s because the less you can confuse your audience by offering them things they aren’t specifically interested in, the better you will be able to deliver precisely what they want.
A Profitable Online Business Idea Can Be Determined By The Competition
To make your life easier, and your business more successful, you’ll need to begin analyzing the competition. That means knowing who your competitors are.
But don’t let the competition discourage you. As you move forward with your online business you’ll learn that competition is a good thing and you’ll be able to actually use them to your advantage
For now, simply use your keywords and your keyword tool for keyword competition analysis. This is how you will evaluate who your competition is and how well they are doing.
Consider Time Verses Money when Choosing Business Ideas
In the end it really comes down to time verses money, meaning you’ll have to seriously consider how long it will take you to reach your financial goals.
Take a long hard look at how much money it will take you to start and grow your business and realistically how long can you wait before you become profitable.
Do you have money on hand or will you need to find a way to raise the funds? Consider your budget and how you’re going to live until you become profitable with your business.
On average, if done right, an online business website can begin to make money as early as a few months. For others it could take a year or more.
The Best Online Business Ideas Are Realistic?
Finally, think about how this business will conform to your lifestyle.
For instance, how much time can you devote to a business? What will the demands of your business be?
A mom of 3 young children may have more free time with a passive income business model such as affiliate marketing as opposed to a more active model of an ecommerce website. So choosing an internet business model that suits your lifestyle will be key.
The Best Online Business Idea Stems from True Passion and Interest
Be honest with yourself on how passionate and interested you really are with a business idea.
Don’t look at a business idea with dollar sign eyes. Just because it sounds like a money making idea doesn’t mean it will be profitable for you. Stop and think about how you might view the idea in 2 or 5 years from now.
A case in point was a gentleman I encountered a few years ago. He jumped on the energy bandwagon and created a business around energy efficient fuel thinking it would be a big money maker for him. After just 2 years he gave up because he actually got tired of the politics and the controversy over the topic.
It sounded like a good money maker, but his heart wasn’t in it.
Market demand, competition, passion and being realistic are all trade marks for finding the best online business idea for your personal and business goals. But as I mentioned it’s not always an easy task.
If you’re still struggling with ideas, here’s an awesome online business ideas resource comprised of individuals making at least $100 a day online.