Find Your Business Niche In 5 Easy Steps
So, you have made the decision to become an entrepreneur and the only thing holding you back is the idea of what business to start. It could be because you have too many ideas in your head and you cannot settle for one, or maybe you do not have any idea at all but you are convinced the entrepreneurial road is your path. The selection process is tricky and mentally exhausting but with the right kind of guidance, it can be really easy. If you're struggling to decide which niche best suits you, the post will do you a lot of good.
1. What Do You Like?
People thrive when they are given jobs that they are genuinely interested in and are very passionate about. Identify what jobs give you the most joy. Make a list of ten or more topical interests ( seriously, make the list. Now!) .
Running a business is not easy, it will test you more times than you can count. If you must be tested however, it would be best for you to be tested in a field where you face every challenge with a smile. Your love for that field becomes your motivation. If you are working in an area you don't like, your first test may just be the last straw.
Nevertheless, you don't need to find the perfect fit. If you are passionate about a particular area, or an aspect, your odds of sticking with it are greater.
How do you know what you like? It's easy
Scouting your competitors and understanding your competitioinn shows you what you are up against and how t about gaining your edge over them. In truth, the presence of competition is not as bad as most people make it out to be, I daresay it's a good thing because it shows that you have found a profitable niche. Thorough analysis of competition is a necessity as it helps to know if there is still an opportunity for you to stand out from the crowd, to be unique and to know if there is something else left to offer.
There are many signs that can predict if you will be successful in your chosen field. Here are a few
Problem solving is the second main objective of an entrepreneur ( the first is to make money) and as such plays a major role in determining which niche best suits you. To create a relevant money making business, you have to first find a problem and find a way to solve this problem then make money with the solution ( except you are an NGO, in which case you are permitted to give it out for free).
You can find out where and what type of problems exist by having conversations with your target market or reading forums, posts, discussion and questions in your target niche.
4. How Profitable Is Your Niche?
In the end, it really comes down to this. The aim of a business is to make profit . If you have narrowed down you top ten list and found something you really like in it, determining the profitability of that niche should be your next step.
Research the leading products in your niche. If you can't find any offers, it's a bad omen as it might mean that no one has been able to make money from that niche
If your research shows a number of products, not too much but just enough, don't let go of that niche. Find out the prevalent prices in that category so that you can price yours in a competitive manner.
5. Lastly, Practical!
So you have read a lot, researched and lot and gained a lot of information too. The next step is to test your idea ( because money can't be made from unused information) . At this point, you should probably start small; from your family, to your street, to the next street, to the state, to the country, and if you are lucky, the world.
Try not to get discouraged if your test sales are not going as planned, it may notean your niche is not profitable. Maybe you aren't sending out the right message or you are not advertising right.
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| image credit : gembaacademy.com |
1. What Do You Like?
People thrive when they are given jobs that they are genuinely interested in and are very passionate about. Identify what jobs give you the most joy. Make a list of ten or more topical interests ( seriously, make the list. Now!) .
Running a business is not easy, it will test you more times than you can count. If you must be tested however, it would be best for you to be tested in a field where you face every challenge with a smile. Your love for that field becomes your motivation. If you are working in an area you don't like, your first test may just be the last straw.
Nevertheless, you don't need to find the perfect fit. If you are passionate about a particular area, or an aspect, your odds of sticking with it are greater.
How do you know what you like? It's easy
- How do you spend your free time? What do you look forward to doing when you're not doing it?
- What clubs or organizations do you belong to?
- What topics do you like to learn and discuss the most about?
Scouting your competitors and understanding your competitioinn shows you what you are up against and how t about gaining your edge over them. In truth, the presence of competition is not as bad as most people make it out to be, I daresay it's a good thing because it shows that you have found a profitable niche. Thorough analysis of competition is a necessity as it helps to know if there is still an opportunity for you to stand out from the crowd, to be unique and to know if there is something else left to offer.
There are many signs that can predict if you will be successful in your chosen field. Here are a few
- Dearth of quality in competitor content : This is the first pointer. If the available competition lacks tangible value and can't provide quality, your goal as an entrepreneur in that niche should be to provide better services than what is available.
- Absence of clarity and transparency : In a world where it is becoming increasingly easy to communicate with people who are thousands of miles away, the need to be clear and transparent in lieu of remaining faceless and overly corporate is gradually increasing. Online entrepreneurs should endeavor to create a genuine and transparent presence in a niche where most others have chosen to do the opposite.
Problem solving is the second main objective of an entrepreneur ( the first is to make money) and as such plays a major role in determining which niche best suits you. To create a relevant money making business, you have to first find a problem and find a way to solve this problem then make money with the solution ( except you are an NGO, in which case you are permitted to give it out for free).
You can find out where and what type of problems exist by having conversations with your target market or reading forums, posts, discussion and questions in your target niche.
4. How Profitable Is Your Niche?
In the end, it really comes down to this. The aim of a business is to make profit . If you have narrowed down you top ten list and found something you really like in it, determining the profitability of that niche should be your next step.
Research the leading products in your niche. If you can't find any offers, it's a bad omen as it might mean that no one has been able to make money from that niche
If your research shows a number of products, not too much but just enough, don't let go of that niche. Find out the prevalent prices in that category so that you can price yours in a competitive manner.
5. Lastly, Practical!
So you have read a lot, researched and lot and gained a lot of information too. The next step is to test your idea ( because money can't be made from unused information) . At this point, you should probably start small; from your family, to your street, to the next street, to the state, to the country, and if you are lucky, the world.
Try not to get discouraged if your test sales are not going as planned, it may notean your niche is not profitable. Maybe you aren't sending out the right message or you are not advertising right.
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