Niche is extremely important if you wish to start a business. If you have made up your mind to start a business but have not yet given a thought to niche, you are wasting your time. So how to find your niche? First of all, list down your passion or interests in which you can see yourself progressing.
Identify Area of Interest:
Already stated above but if you have not then you should make a list of about 10 interest areas right away. Business happens to be risky and difficult which is bound to test you at some point. If you have to work in a field that is not of your interest, it is likely that you will quit. You do not have to find THE perfect fit but if strongly about some aspect of running the business, do it.
Assess yourself and write down how you like to spend your leisure hours, the magazines you subscribe to and the clubs and organizations you are a member of. These can assist you in identifying your interest/passion.
Find Problems of Target Market with Means to Solve them:
When you have the 10 topics in hand you can begin to narrow down the options and if you wish to create a lucrative business for yourself, find the problems faced by the target market you wish to focus on. See what you can do to solve their problems.
You could discuss it with people from your target market. See that you ask questions that could assist you in uncovering pain points. Look up over the internet and see the discussions taking place there. Lastly, look for the different keyword combos on Google AdWords and Google Trends.
Having competitors for business is healthy and shows that you may have arrived at a profitable niche. Do detailed research and analysis of competitor sites. Make a sheet of all of those sites. Then see what you have got and could you be able to make your mark? How can you make a unique offer?
Is your Niche Profitable?
One should have a good idea of what niche you wish to enter. Even if you haven’t been able to pick down on single area, you might have narrowed it down to few ideas. You should know how much you can invest in your niche. Look for the top products of your category and if you are unable to find offers means nobody has been able to make a profit in it. A bad sign. If a number of products come up, make a list of price points so you can price your products competitively.
Test the Idea:
Now you have all the information that you need for selecting a niche. You just have to test your idea now which you can easily do by setting up a landing page for the pre-sale of your product. Traffic can be driven to it with paid advertising.
If you are unable to get pre-sales, do not worry as it doesn’t mean you are in the wrong niche. It could be due to many reasons. By implementing A/B split testing, you could largely optimize conversions.