Updated August 2018
The thought of launching a startup often feels good, but many who do it get stuck when it’s time to determine the right niche business ideas. Are they easy to come by? Probably not. That’s why very few people succeed in finding the right niche for their business.
You could be one of them, but that’s only if you are willing to do what it takes to find one. Admittedly, this can be an overwhelming experience.
Whereas many of us can’t just seem to arrive at an idea that seems good enough to act on, there’s another sizeable section who harbor dozens of ideas; the only problem being that it has never occurred to them how they can pin down the right one.
Now, whichever side you are on, one important thing we all need is a solid foundation, and today, we reveal the actions you should take to arrive at a proper business niche.
1. Go With Your Passion
Well, this has to be the most debated aspect when it comes to finding a business niche. But you know what’s more important than that? It’s the fact that it has worked for many.
Passion is no doubt good for business because its success largely depends on that. Think of it this way. When you have a genuine passion for what you do, you will do everything in your power to succeed and avoid failure. That means you will take risks, you will be ready to learn new things, and more importantly, embrace challenges.
Passion can take different angles. You can be passionate about the product or service, or you can just have the passion directed at the idea of being a business person. For instance, the latter mostly applies when you are after solving problems with the aim of making a profit out of your solutions.
Should you worry about any of these? Definitely not. What’s really important is the passion itself. It’s what drives you.
So, go ahead and launch a business on an idea you care about deeply. If you talk about it all day, spend hours upon hours researching it, or you continuously seek experiences in it, that’s the right thing to turn into a profitable idea.
If you have several of these, narrow down your list to those you are willing to stick with no matter what. Remember, there will be a rough side of things, just as there is with every business, and genuine passion for what you do will be among the many things that will see you through it.
2. Look For Problems You Can Solve
A common mistake many failed businesses make is trying to create a solution for a problem that doesn’t exist or one they never examined closely.
Take a closer look at successful startups such as Airbnb and Uber or the major brands of our times, like Google, and you will realize they were first driven by a need to solve a particular problem. Even your local café that does home delivery for pizza tried to solve something.
The fact is, many consumers face different types of problems and are always looking out for solutions. And if there’s one, they will be more than willing to seek out those that are better and smarter.
In your effort to find proper niche market ideas, pour your focus into finding these problems and when you do, find solutions that match them perfectly.
Usually, consumers will have needs, and it’s up to you to dig deeper and set aside what you would call pressing needs. Examine the solutions available (if any) and look out for ways to make yours better.
If you’ve never sat down with or listened to what consumers complain about or go through every day, this is the perfect time to do that. You can start with online forums. Here people talk about a range of things and the discussions mostly revolve around looking out for solutions. A good example is Quora.
Search engines are also another place where people spent time searching for solutions to their different problems. As you will see later, there are ways you can leverage this opportunity and end up with unique niche business ideas that could turn into profitable ventures.
3. Invest in Proper Research
Research is quite a dense topic but we’ll try our best to simplify it. Let’s begin with the competition. We can all admit that looking at those you intend to compete with in your niche can oftentimes lead to frustration, yet here’s where plenty of opportunities abound.
Even though it’s an option, running away should come nowhere near your top solutions. Instead, take time to study your competitors and try to dig up ways to set yourself apart. Look out for their weaknesses, analyze what they offer, and also study customer feedback. Once you have answers, come up with an idea that can address all that.
Another aspect of research is seeking to know and understand the details about what’s involved in the business niches you intend to choose from. This can involve things such as knowing who your prospective customers are, their needs or challenges, your competition, pricing models, and so on.
What you gather will assist you in knowing which niche ideas can work and which ones won’t.
You also have to remember that you stand a better chance of succeeding in anything if you are an expert in it. This, therefore, calls for research and even going further to explore every opportunity available to study your niche. In the event you come across potential issues that seem persistent and hard to wish away, stay away.
However, if you find an idea realistically viable, take the chance and execute it.
Lastly, take your market research online and maximize the available keyword research tools. The keywords you use is going to determine how many visitors you get to your website.
Choose the wrong keywords and it can take years to get visibility online. The easiest way to start your keyword research is to use Long Tail Pro’s keyword tool to find suggested keywords. You just enter in a keyword you want to rank for and it provides several similar keywords that you can target and let’s you know how competitive it will be to get in front of your audience.
Here’s a video on how to use Long Tail Pro for your keyword research:
4. Go Where The Money Is
At the end of the day, your goal is to make profits, which means whichever idea you will end up with has to have the potential to make money. In technical terms, this is referred to as financial viability.
When you have a list of ideas and not sure which one to pick, this is an aspect you should really pay attention to. You can go about this in several ways.
First off, if there’s competition, it means there’s something to gain, and in most cases, the gains are always enough for those who do the proper thing. On the other hand, if no other business exists in your niche, chances are high it’s not profitable unless the niche is incredibly unique, has never been explored before, and there’s demand for it.
Remember what we mentioned earlier about researching your competitor? Great. If you ever decide to pick a niche in a competitive market, put into consideration the aspects we mentioned.
Keep in mind that it’s still okay not to start a business with a product that’s never been offered before. Sometimes, adding a little creativity to an existing product is all you need to rise above your competition.
Also, if you have satisfactory answers to these three questions, it means your idea stands a better chance of being profitable. They include:
- Is your idea a solution to a problem facing the your intended target market?
- Will people offer money in exchange for your solution?
- Are there enough people to buy your product?
As an aspiring business owner, you have a higher chance of success when you limit yourself to a niche. Going too broad has its limitations, the least of which being that it may take you longer to rise to the status of your competitors and that your chances of succeeding could be a little narrower if you are a small business.
Choosing a niche will, however, boost your chances of success, first, because it’s a little easier to describe what you do or offer to your customers, and secondly, due to the fact it makes it easy to target a niche that is likely ready to make a purchase decision.
What’s more, we’ve even made it easier for you to find your niche business ideas. By opting to go with your passion, looking for problems to solve, investing in proper research, and focusing on where the money is, you will cleverly narrow down your search to a niche market idea that is sure to work for you.
And once the viability of the selected niche is confirmed, don’t hesitate to start planning and executing it.