Exploration of Challenges and Niche Factors

Running head: EXPLORATION OF CHALLENGES AND NICHE FACTORS 1

Exploration of Challenges and Niche Factors

Gwendellyn Blankenship-Jones

July 22, 2010

Abstract

How well researched each of the steps in the start- up process have been, greatly affects whether the business is a success or failure. Three of the challenges startups face, include; choosing a product or service and market location: deciding on ownership arrangements: and maintaining integrity in an unethical business environment. Researching demographics and studying forms of ownership, until there is a comfortable level of certainty behind the final choices, can improve the chance for success. It may also prevent failure, brought on by preventable mistakes caused by lack of information. When defining niche products and exploring some advantages of niche markets it is evident why these types of products can be profitable and good business choices. Many companies have become very successful by targeting specific segments of a market through niche products.

Imagine starting an ice cream business without realizing that two other ice cream shops are in too close proximity. Then, the competition drives you out of business before you even have a chance at success. This may be an extreme example of the result of a hasty choice about the product, service, and location of your business, but it illustrates the potency of the first of many challenges any entrepreneur faces.

Identify at least three challenges when setting up a business. Explain why they are challenges.

Challenge One: choosing the product or service and market location.

There are billions of ideas to choose from, so, it requires serious thought and investigation. It is a challenge to consider all of the components that combine to create a successful business choice: (a) what are your interests; (b) do you have something unique or competitive to offer; (c) considering consumer demand, what do people need or want; (d) will start...