What is a Niche?
Before we dig to the good stuff let’s briefly cover what is a niche market? While many people pronounce this term differently it’s meaning should be understood the same by every entrepreneur. Simply put a niche market is target audience within a larger market. For example, with internet marketing, SEO would be a subset market, and SEO services for lawyers would be my niche market.
Many times we are led to believe that appealing to a bigger share of the market will provide more revenue opportunities. Maybe on paper this makes sense, but if you cater to everyone you cater to no one.
Take this example:
If you’re a lawyer looking for SEO services would you go to company A that offers SEO services for small – large businesses, or company B that specializes in SEO for lawyers? You would most likely resonate better with company B since it’s speaking to you, and not everyone else.
Finding your passion
Note: Depending on which stage you are, feel free to skip the steps that you may have already completed
So you have a basic understanding on what a niche is, but what does it mean to find your business niche? For starters you have to know where you want to go. Think of it this way if you’re driving around town without a destination how will you know when arrive? The answer is you never! You’ll probably drive until you run out of gas (not good), or move further away from what’s important to you.
Before you read any further look around for the nearest sheet of blank paper. What you want to do is write down a list of what you “think” you’re passionate about. I say “think” because everyone is at a different level when it comes to knowing themselves. Ironically we spend the most time with ourselves, but sometimes it’s our friends/family who know us best. Go ahead and come up with a minimum of 2-5 different passions you have within you.
- I love working with people face to face
- I find myself always reading about fashion
- Motivating people fires me up
You don’t necessarily have to niche down here. You’ll just want to jot down your ideas on what you’re passionate about.
What’s your vision?
After writing your list down it’s time to find your vision.
I want to build financial independence. Ideally I’d like to be location independent working with people across the word. I’d love to speak in front of an audience many times throughout the year.
Note: Another way to think about this exercise is like creating your vision board. Sometimes it may be easier to use pictures than words to paint the lifestyle you want to create for yourself.
Putting it all together
You now have your vision, and a list of your passions. It’s time to connect the dots! Ask yourself for each item on your list how well it aligns to your vision. I like to grade these items by colors (yellow (somewhat), Green (Definitely), and Red (No way). What you’re doing here is narrowing down your options to not just what fires you up, but also what aligns well with the lifestyle you desire. Ideally you’ll want to end up with one choice, but if not don’t sweat it.
If you have 2-3 items that you can’t decide on you can try the following:
For each item on your list pretend you’re explaining it to a friend or loved on. Think of this exercise as rehearsing your “elevator pitch”. Once you’ve complete each item ask yourself the following questions:
- Do I find it difficult to explain?
- Does it excite me?
Sometimes what we think we’re passionate doesn’t resonate with the way we speak about it. So if you catch yourself fumbling on an item, then maybe you should consider dropping it off your list.
Finding your passion is one of the most important steps you can take when launching your business. Failing to skip this step make cause you to quit your business venture in the future. Simply put if you’re not happy in your business this will make it extremely difficult to succeed. Don’t create another “9-5” for yourself.
Know your “WHY’
Knowing your WHY is just as important as finding your passion. What drives you? Why are you deciding to launch your business? You have to know these questions by heart. You might have to sit down on this one if you don’t already know. Think back when you were a kid. Chances are you had the answer since then, and you eventually became distracted with everyday life.
Entrepreneurship isn’t easy. Far from it, and why statistics say that 8/10 businesses fail. Once you know your why you’ll have the courage to get back up when you make mistakes along the way.
Hopefully by this point you’ve truly narrowed down to one thing that fires you up. We can now proceed to the good stuff 🙂
In this exercise you will transform your passion into a profitable market.
Perform the following:
- On Google type “Amazon kindle bestsellers”.
- Once you’re in the Amazon website click “Kindle e-books”.
- Depending on your niche select a category
i.e. If my Passion was nutrition I would select “Health Fitness & Dieting”.
You’ll notice that there are sub-categories under this section. What you’ll want to do is keep getting specific until you can’t any longer. Keep in mind that you will try narrowing down to what best aligns to your passion. In my Health example I eventually landed in the following category: Health Fitness & Dieting > Exercise & Fitness > Weight Training.
Now we’re getting specific! The next step involves browsing the top 10-20 books. The goal here is to find trends. In my Health example I’ve notice that the major trends are “Lean Muscle, and “Muscle Strength”. Cool!
Congratulations! You’ve successfully found a profitable niche.
Note:This will vary for everyone depending on a niche, but the concept remains the same. For example, different niches will contain 1-3 sub categories.
Finding a niche is by no means an easy process. If you followed through this whole article hopefully you’ve found a niche that you’re passionate about. The best part of using this approach is that you know your niche is profitable because it’s selling like hot pancakes on Amazon.
If you feel like you haven’t found a niche that you’re passionate about don’t worry! You can re-attempt the exercises above to see if it will help, but I recommend that you just get started.
I remember a few years back I was confident that the perfect business idea would eventually come to me. After realizing that it wouldn’t I launched 2 business ideas that flopped. The best part of these 2 business failures was the valuable experience that I gained. I gained new perspectives that I wouldn’t have gotten if I had waited for the “perfect” business idea.
Action is key.
I hope this article has helped you find a business niche that you’re passionate about.
Please share in the comments below what niche you’ll start your business in.
I wish you much success!