When you want to start a business and the thing that is holding you back is the market niche, it can be tricky. You can list down all your interests and passions but sometimes even after doing so, you would feel as if you haven’t hit upon the singular thing you were meant to do.
Don’t stress out, it’s better to get up and running than to wait around, in this way you can test out ideas, enter the market sooner and learn from your successes and failures. With this knowledge, you could use them to move forward with new ideas if your first business doesn’t take off.
These five steps can help you to gather more data to find your niche.
1. Identify your interests and passions.
Make a list of 10 topical interests and passion areas – If you already have a list, then you’re good to go!
Business isn’t easy you need to keep that in mind and at some point, it will test you. If you’re working in an area that you don’t care about, your odds of quitting will greatly increase.
You do not need to find a perfect fit, but if you are passionate about some aspects of running the business then stick with it. If you don’t care about the topic, you may not be able to find the drive to persevere.
You can use the tips below to help you determine what your interests and passions are:
- How do you like to spend your free time?
- What do you look forward to doing when you aren’t doing it?
- What magazines do you subscribe to and what topics do you like to learn about most?
- What clubs or organizations do you belong to?
2. Identify problems you can solve.
Start narrowing down your options from the list you’ve made earlier. To create a profitable business, you first need to find problems your target customers are experiencing. Here are several things you can do to identify problems in specific niches:
- Have one-on-one conversations or idea-extraction sessions with your target market. Create a plan or format of questions that helps you uncover important points.
- Peruse forums. Gather forums related to your niche, study the discussions that are taking place. What questions are people asking and what problems do they have? Those are main key points you can use when you are working on your niche.
- Research keywords. By doing so you can uncover popular search terms related to pain point, explore this with different keyword combinations on Google Trends and Google AdWords‘.
3. Research your competition.
When there are competitions rising isn’t necessarily a bad thing. It may actually be showing you that you’ve found a profitable niche. You could start a new spreadsheet and start logging all of the competing sites you can find, then it would be easier to figure out whether there’s still an opportunity to stand out in the crowd. Maybe there is a way to differentiate yourself from the others by creating unique offers, you could use the list below as a guide to enter a niche and be successful, even if there are already other sites serving it:
- Low-quality content. If your competition in a niche where other business owners are not creating high-quality and detailed contents for the audience, it’ll be easy to outrank them, create higher-quality contents!
- Lack of transparency. Many online entrepreneurs have disrupted the entire industries by creating an authentic and transparent presence in a niche but in other sites are faceless and overly corporate.
- Lack of paid competition. If you have found a keyword that has little competition and paid to advertise but has a relatively high search volume, there is an opportunity for you to upset the market.
You should have a pretty good idea f what niche you’re going to get into now, whether it’s one niche or several niches don’t worry, you’ve likely found a few ideas you feel pretty good about. Now you need to get an idea of how much money you have the potential to make in your niche, so browse top products in your category, if there are no offers, that’s not a good sign, it could mean that nobody has been able to monetize the niche.
If your search does turn up a decent number of products even a little bit, you’re in luck. Jot down notes of the price points so you can price your own products in a competitive manner. Keep in mind that you don’t have to start your business with a product offering of your own, you can partner up with advertisers and site owners.
5. Test your idea.
You are now armed with all the information you need to choose a niche, the only thing left to do is test your idea! You could set up a landing page for the pre-sale of products you’re developing, you can also drive traffic to this page with paid advertising at the same time.
If you don’t get pre-sales, that doesn’t mean that you aren’t in a viable niche, maybe your messaging isn’t quite right or you haven’t found the right offer yet. Try finding out if there is anything stopping your target market from taking action.
You may want to learn how to create a blog to generate more traffic to your site and boost your revenue and scale up! Do keep in mind that there isn’t necessarily a perfect process for finding a niche, but if you get stuck in the planning phase, you’ll never get around to starting.
If you come across a business idea you can invest yourself into, take the plunge! The learning and growth that comes from working towards the goal will be far greater than the rewards of just planning.
What are you waiting for? Start taking notes and get moving!