Instructor Mary Collins
November 9, 2009
This is our second assignment answering questions around starting a business particularly a niche business. Also identify niche companies in the United States today and why customers will pay more for this product.
Identify at least three challenges when setting up a business.
One challenge would be getting startup money or capital in today’s economy even with the bank bail outs it is extremely difficult to get approval for a loan. With consumer spending down getting investors to risk money at this time will be nearly impossible. I think proving you have a quality product that has a guaranteed market will be key for your success. Second challenge will be defining a niche product that doesn’t already exist. This will take research locally and globally to insure you have a demand for your product. The third challenge is competition you aware of and ready for your competitor. In today’s tough economy there are so many business closing because its competitor is beating them at price and everything.
Define what a “niche” product is. Give at least three examples of niche products.
A product that is manufactured and marked for specialized purpose is a niche product. One niche product is Burts Bees this all natural line of beauty care and is growing rapidly with 25 years behind its belt. Burts Bees was started in 1984 with selling candles made of bees. In 2007 with Burts bees’s sales topped 250 million. In 2009 Burts Bees was voted second greenest US Brand. This is a product that I have actually concerned using due to the natural ingredients in there shampoo and conditioner. It is extremely difficult to locate a product that offers such ingredients that you can pick up at the local stores with out having to order online. Another niche product is the most popular Iphone yes this is a cell phone but much more. Customers stand in line waiting for
References: Kelly & McGowen, 2010, Business , Page 70 http://www.nintendo.com/wii/what, Nintendo of America Inc. Headquarters http://www.businessweek.com/innovate/content/nov2006/id20061129_019355.htm, 2009, The McGraw-Hill Companies Inc.