Perhaps one of the biggest challenges for aspiring entrepreneurs is figuring out what type of market you want to enter. Too small of a share of the market (or market share) and you run the risk of never breaking even.
If it’s too large, then you might end up being lost in a sea of competitors. Additionally, knowing if your startup should exist as brick and mortar, online, or both can also be a headache as well.
However, not to fret as we’ve compiled a list of a few types of markets to enter if you’re considering launching a startup.
Fashion
We all have a friend that’s tried to start a t-shirt or clothing company. Most likely, the firm started out as something aspirational, but eventually folded or became a side hobby.
This is because most fashion brands require a hefty amount of lifting at first. Remembering that once your fashion brand is established, fashion can also be one of the most lucrative startups you could have gets you past that initial set-up.
Where the bulk of startup costs come in with starting a fashion brand is supplying the first line of inventory as well as production. If you’re designing the clothes yourself, then time and labor come at a loss at first, but can quickly be made up by setting a competitive price point in comparison to the market.
Additionally, while buying inventory in bulk can be an advantageous way of saving money off the bat, be wary of it as it can also mean you’re stuck with boxes upon boxes of clothes that didn’t sell.
The best method to approach the industry is by producing short runs (2-3 items per week) that test and see what designs/products are most popular to hone in on.
As your buzz grows, you can expand into higher cost items, such as jackets and sweatshirts.
Finally, fashion is a continuous art-form (that is, it never dies), so being consistent and relevant is huge. Follow these steps, and your fashion startup can be profitable in no time.
Craft Beer
The craft beer market has exploded in the past few years. Looking at the numbers behind it, it’s easy to see why. As regulations have made it easier for these places to do business, they’re at less of a risk to take on fines (note: in some states, places that sell alcohol are also required to sell an equal amount of food and craft breweries do not always fall under this). Plus, the model is one that’s easy to replicate.
Most craft breweries start out by perfecting their staples. For example, their rendition of an IPA, Ale, or Stout that’s unique enough to stand out but isn’t as expensive to produce.
After they’ve established a reputation for these beers, then they can start building out on experimental short runs, which bring in a much higher margin while reducing waste.
Finally, the usage of craft breweries as an event space has been a popular option as well as they’re commonly pretty wide open areas.
Weddings
Slowly but surely, startups have started to infiltrate the wedding industry. And for a good reason too, weddings are an expensive venture and one that people want to make sure that they’re getting the best bang for their buck.
However, as brick and mortar, as well as tech companies, have been springing up to alleviate the cost, this market is quickly becoming one of the most lucrative for newcomers to enter.
When you break it down, there’s a lot of avenues that can be taken in trying to capitalize off of the wedding industry.
Starting from the venue at hand, to the dresses, catering, flowers, transportation, and entertainment, there’s a whole laundry list of necessary expenses to make your special day one to remember.
If you plan to enter this market, make sure that you make your service is honed in on serving one particular aspect of the process.
For example, if you’re a transportation company in a state that requires drivers be separated by a partition from passengers that are drinking, then advertise yourself as the primary wedding transporter because you keep the party going.
Overall, if your niche, then wedding season could be one of the most lucrative ventures you’ve ever seen.