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5 Signs You’re Focusing on the Wrong Niche for Your Online Business

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Starting an online business has been a hot topic for the last few years. More and more people are trying out their luck to see if they can create something sustainable but there’s one thing that can make it infinitely harder than it should be and that is targeting the wrong niche. Focusing on the wrong niche can delay your success for years and can be expensive. Luckily, there are some signs that you can look out for to avoid that and start your online business in the right way.

Why it’s important to pick a niche for your online business

An online business needs to have the credibility to succeed. If people don’t trust the products or services you provide they aren’t going to be willing to part with the money in their wallet in exchange for them. It’s easier to gain that trust by being very knowledgeable in one thing than being a jack of all trades and a master of none.

This is why it’s important to pick a niche and revolve your business around it but as I said, just picking a niche is half the battle. Picking the right niche is what will help you achieve your goals in the shortest way possible. 

Below are 5 signs you’re focusing on the wrong niche.

1. Your niche is based on a trend 

Most people go into an online business with the idea of creating a sustainable business for the long term and if you’re in this group I’d be very wary of niches based on trends. It’s very tempting to pick a niche based on it blowing up but just as fast as it has become popular it can go back to being almost non-existent. 

An example of such a niche was hoverboards. At its peak, I have met people that made up to $20K a month just in affiliate sales and 2 years later barely make $200 a month. That doesn’t mean you can’t take advantage of these opportunities but know what you get yourself into if you do and have a long-term plan in place.

2. You’re competing with huge businesses on every corner

I don’t think it’s necessarily a disaster if there’s already an authority in your niche because there’s a lot of money to be made in being the number 2. For example, take Pepsi Cola. With all of Coca-Cola’s success, Pepsi is doing fine but this doesn’t mean you can do that in every niche that is dominated by other businesses. If you’re constantly trying new angles to appeal to your niche but your competitors keep invading those spaces and are capable of taking all the attention away from you, it might be time to look at picking another niche.

“The problem with competition is that it takes away the requirement to set your own path, to invent your own method, to find a new way.” – Seth Godin

3. You picked it solely for the money

It’s important that the niche you pick is profitable but if money is the only reason for picking a niche you’re going to have a hard time for multiple reasons. I always say the steps to creating an online business are simple but that doesn’t mean it’s easy. 

The moment money is your main goal for picking a specific niche and you don’t start earning at the pace you expect, it’s going to be easy to lose motivation. The most profitable niche are also the ones that tend to be the hardest to succeed in because people flock to these niches all thinking the same thing: “…This is where I can make the most money…”

As a result, they often run into sign #2 as a problem. What they don’t realize is that there is a lot of money to be made in the smaller niches and it’s a lot easier to obtain.

4. Most people in your niche are broke 

An online business needs to be profitable to sustain itself. Entering a niche that is known for having people that don’t have money isn’t the best idea. It often limits how much you can ask for your products and/or services and it decreases your chances of making upsells to increase your profit. This doesn’t mean you can’t make it work but it often takes the same amount of energy to target niches with people that are willing to spend more money.

5. You have to convince your niche to buy products

We often believe sales is this magical thing where if you’re an expert, you can say a few magical words and people will become obsessed with your business but this couldn’t be further from the truth. In reality, when doing sales, the majority of your leads will say no. That’s why even the largest B2C businesses still convert under 50%.

Sales is mostly showing people that are interested, enough context to make a purchase and handling objections. The moment you have to spend a lot of energy on every sale of a product that is commonly used by that particular niche, it’s time to get back to the drawing board.

How to deal with these problems

When you come to the conclusion that you picked the wrong niche the first step doesn’t necessarily have to be picking an entirely different niche. Depending on the situation, you could also narrow down your niche to a sub-space.

For example, let’s say you picked the niche personal development for your online business. In this niche, you’d be competing with people like Tony Robbins, Tim Ferriss, Patrick Bet David, etc. Not a good place to be. 

Here are some examples how to narrow down that niche: 

  • By location (Personal development in a certain city)
  • Demographic (Personal development for kids with anxiety, physically disabled people)
  • Activity (Meditation, productivity Leadership, communication )

Narrowing down a niche can open thousands of doors you normally would never think of.

Rogier Giersthove is a Digital Marketer, Blogger, Podcaster, and the founder of realdigitalsuccess.com a website that helps people with creating an online business, website marketing, and provides people with a realistic look at what it takes to make money online. He has been featured on Social Animal, the I AM CEO podcast, and Mostly Blogging.

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Entrepreneurs

How Entrepreneurs Are Harnessing LLCs to Launch Successful Startups

LLCs have unique advantages for starting up and growing a successful business

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why you should set up an LLC

In my entrepreneurial journey, I’ve learned that LLCs have unique advantages for starting up and growing a successful business. But, before delving into the advantages, it’s essential to grasp the fundamentals of what an LLC is and how it operates. 

What is an LLC?

An LLC is a hybrid business entity that combines the liability protection of a corporation with the pass-through taxation of a partnership or sole proprietorship. This unique blend provides entrepreneurs with the best of both worlds: personal asset protection and simplified taxation.

One of the most significant advantages of an LLC is its limited liability feature. This means that as the owner, my personal assets are shielded from any liabilities or debts incurred by the business.

In the event of lawsuits or financial obligations, only the assets of the LLC are at risk, offering me peace of mind and protecting my personal wealth.

Advantages of Forming an LLC

Flexibility in Management and Structure

Another aspect of the LLC that appealed to me was its flexibility in management and structure. Unlike corporations, which have rigid hierarchies and formalities, LLCs allow for a more relaxed approach to governance. As the founder, I have the freedom to structure the company in a way that suits the needs and goals of my startup.

For instance, LLCs can choose to be managed by their members (owners) or appoint a manager to oversee operations. This flexibility enables me to maintain full control of the business or delegate management responsibilities to trusted individuals while retaining ownership.

Additionally, LLCs are not bound by strict meeting requirements or extensive record-keeping obligations, reducing administrative burdens and allowing me to focus on building and growing the business.

Pass-Through Taxation and Financial Efficiency

One of the most attractive features of an LLC, particularly for startups, is its pass-through taxation. Unlike corporations, which are subject to double taxation (taxation at both the corporate and individual levels), LLCs pass profits and losses directly to their members’ personal tax returns.

This tax efficiency not only simplifies the filing process but also allows for greater flexibility in managing cash flow and reinvesting profits back into the business. As an entrepreneur, minimizing tax liabilities and maximizing financial efficiency are critical components of long-term success, and the pass-through taxation feature of an LLC aligns perfectly with these objectives.

Enhanced Credibility and Professionalism

Establishing an LLC can also enhance the credibility and professionalism of a startup. Unlike sole proprietorships or general partnerships, which may be perceived as informal or less legitimate, an LLC provides a formal business structure that instills confidence in customers, investors, and partners.

By operating under the umbrella of an LLC, I can present my startup as a reputable and established entity, which can open doors to opportunities such as securing financing, attracting top talent, and forging strategic partnerships.

This enhanced credibility can be a significant advantage, particularly in competitive industries or when seeking to differentiate my startup in the market.

Protection of Intellectual Property and Brand Assets

For startups built around innovative ideas or unique intellectual property, protecting these assets is paramount. An LLC offers an additional layer of protection for intellectual property and brand assets, safeguarding them from infringement or unauthorized use.

By registering trademarks, copyrights, or patents under the name of the LLC, I can establish legal ownership and enforce my rights more effectively in the event of disputes or infringement claims. This protection not only preserves the value of my intellectual property but also enhances the overall stability and longevity of the startup.

Steps to Form an LLC

Let us now look at the general steps to form an LLC for your business:

Step 1: Choose a Name for Your LLC

Selecting a unique and distinguishable name is the first step in forming an LLC. Ensure that the name you choose complies with the rules set by your state’s LLC division. Typically, the name must end with “Limited Liability Company,” “LLC,” or an abbreviation of these terms.

Additionally, the name should not infringe on the trademarks of existing businesses.

Step 2: Designate a Registered Agent

A registered agent is an individual or entity appointed to receive legal documents, such as lawsuits or subpoenas, on behalf of the LLC. The registered agent must have a physical address within the state where the LLC is formed.

For instance, if you are forming an LLC in Texas, ensure that your registered agent has a physical address in Texas.

This role is crucial for ensuring that the LLC remains compliant with legal requirements and maintains good standing.

Step 3: File Articles of Organization

The Articles of Organization, also known as a Certificate of Formation or Certificate of Organization in some states, is a document that formally establishes the LLC. You’ll need to submit this document to the appropriate state agency, usually the Secretary of State or Division of Corporations.

The articles typically include basic information such as the LLC’s name, address, registered agent details, and the purpose of the business.

Step 4: Create an Operating Agreement

While not always a legal requirement, drafting an operating agreement is highly recommended for LLCs. This document outlines the ownership structure, management roles, voting rights, profit-sharing arrangements, and other important aspects of the LLC’s operations.

Even if you’re the sole owner of the LLC, having an operating agreement in place can help clarify expectations and prevent disputes in the future.

Step 5: Obtain an Employer Identification Number (EIN)

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify your LLC for tax purposes.

Even if your LLC doesn’t have employees, obtaining an EIN is necessary for opening a business bank account, filing taxes, and conducting other financial transactions.

Step 6: Obtain Necessary Permits and Licenses

Depending on the nature of your business and its location, you may need to obtain various permits, licenses, or certifications to operate legally. These requirements can vary widely from one industry and jurisdiction to another. Common examples include business licenses, zoning permits, health permits, and professional licenses.

In my entrepreneurial journey, the decision to establish my startups as LLCs has been instrumental in mitigating risks, optimizing financial performance, and positioning my ventures for long-term success.

By harnessing the advantages of the LLC structure, I’ve been able to navigate the complexities of entrepreneurship with confidence and resilience, laying the groundwork for a bright and prosperous future.

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Entrepreneurs

Build a Strong IT Team with These Smart Hiring Tips

Without dedicated IT staff, your company may not be able to function as efficiently or effectively

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Hiring tips for tech industry

The role of IT staff in your company is not only essential but also ever-evolving. As your business grows, so does the need for qualified IT staff and more robust recruiting solutions.

After all, from maintaining and troubleshooting the computer systems that keep your business running smoothly, IT staff also help employees stay connected and productive by providing technical support at all times. (more…)

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Entrepreneurs

5 Important Legal Tips Every Entrepreneur Should Know

With a firm commitment to legal knowledge, you pave the way to grow your business sustainably

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legal tips for entrepreneurs

Embarking on the entrepreneurial path is a courageous venture that calls for a diverse skill set to achieve enduring success.

While creativity, drive, and strategic vision are paramount, integrating legal insight into your entrepreneurial toolkit can be a game-changer.

This comprehensive guide delves deeper into the five critical steps that can empower you to navigate the intricate legal landscape and propel your venture toward prosperity. (more…)

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Entrepreneurs

6 Hacks to Boost Your Productivity as a Business Owner

To improve how much you get done each day, it’s smart to establish routines and use careful planning

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productivity for business owners

Entrepreneurs are always looking for ways to get more done with the time and resources they have. Business owners can use clever productivity tricks to break these limits and make the most of their projects. (more…)

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