Finding a niche for a new business can be intimidating. At this point, it is easy to get confused if you have lots of talents or feel lost if you don’t have many skills. This guide is for those who want to build an online business but aren’t sure where to start. It is also for those who already run a profitable online business but lack the passion to sustain it.
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In this post, you walk through 5 steps for finding a niche that is both lucrative and exciting.
Identify Your Interests and skills
This is a great way to start digging to discover your niche. It is crucial to choose a niche that you love so that you can stick with it come rain or shine.
Make a list of all the things you love that can be potentially monetised.
You don’t have to find a perfect fit. As long as you love something about that niche, you will stick with it.
To aid you in making this list, here is a prompt you can use.
- Think of all the platforms such as blog posts and Youtube channels where you love to spend your time. What topics do you love learning about?
- How do you love spending your free time?
- What forums, organisations or clubs do you belong to?
The next thing you should do is to identify those things you are knowledgeable about. Your ultimate goal should be finding a sweet spot between your passion and your skills. It is often easier to succeed in something that you enjoy and have expertise in than in something that lacks one of these qualities.
Use the “Medical Doctor Strategy”
While taking the generalist route is not a good long-term strategy, it is an ideal way to get clarity when you’re just starting out without a niche. I call this the “Medical Doctor strategy” because doctors start out as general practitioners before specialising in a particular field of Medicine such as Gynecology, Neurology, or Dermatology.
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Since this is supposed to be a temporary strategy, it is important to experiment as fast as you can until you find your niche. Even if this takes two or three years, always stick to your goal of niching down. For instance, if you’re a social media manager, you can try freelancing for different industries until you find one you like.
Research on the Profitability Of Your Niche
Passion for a niche can only take you so far. You also have to ensure you can make a profit from that niche to enable you to create a lucrative business. To determine this, do some basic keyword research.
This step is now easier than ever thanks to tools like Google Keyword Planner and KWFinder. Plugin some keywords related to your niche and take note of the words and phrases that show up. You can narrow down these results by monthly search volume, competition level, and suggested bid.
This will help you discover if there is a profitable market for your niche and the level of competition of the keywords.
Test Your Niche
Once you’ve done some research and experimented, the only thing left to do is to test the niche. One simple way to do this is to create a landing page that promotes a free product you’re developing.
Next, drive traffic to this page using paid advertising. Even if you don’t get a lot of conversions on your page, the issue may have nothing to do with your niche but with the way your landing page copy comes across. The message may be vague or you may not have found the right offer yet.
By testing your idea, you gain insights into the factors affecting your conversions and know what to change.
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