Why You Need to Do Your Own Market Research
Now, at this point you may be asking, do I know if they’re profitable?
You don’t. You don’t.
Not unless you’ve got a good friend in the business. It’s the same thing as the pizza business. If you walk in cold, to the pizza joint, and you ask to speak with the proprietor, and you say hey I’m thinking about opening up a pizza shop next door. How many pies you selling on Friday night? He’s going to look at you like you’re crazy, and he’s going to boot you out of his building.
But, if you happen to be friends with the proprietor, and you say “John, I’ve been watching you for the last few years, and I appreciate and respect you. But, you seem to be doing all right.”
John says, “You know buddy, I am, I’m doing okay.”
And I say “You know, I’m thinking about maybe opening up a pizza joint. Don’t worry John, I’m not going to put it across the street. And you can maybe give me some advice, and you know, I’ll put it all the way on the other side of town so it doesn’t bother you at all. John, would it be okay with you if I opened up a pizza joint on the other side of town?”
And John says “Yeah.”
And I say, “John, could we sit down, and you kind of tell me what some of the numbers are? Maybe I’ve just got dollar signs in my eyes. Could you tell me what you’re spending on your workers, and how much you’re spending on dough, and actually, how many pies you’re selling.” Then he might tell you.
Here’s the thing, unless you’ve got a friend at Amazon, and that probably wouldn’t be ethical. Or, you’ve got a friend who’s got his own infomercial. Or you’ve got a friend that sells something in a particular niche. Folks, you’re not going to get the insider data. It’s just not there. You’re not going to get the insider data. And, believing that you can know how profitable something is before you get started is a fallacy.
Everything I’ve just given you is going to help you to determine, ascertain whether there’s a need, and whether there are things being sold in the particular niche in which you are interested.