If you’re stuck in finding out the best way to start an online business then the best place to begin is learning how to find a profitable niche market.
Why is finding a niche market so important? And what is a niche market anyway?
Quite simply a niche market is a smaller field of interest within a broader market or field of competition. So, by reducing your field of competition you can increase your chances of marketing success. But even though many people understand this basic principle, in business, especially for new entrepreneurs, so many people make the mistake of not reducing their competition by marketing too broadly. Discovering how to find a profitable niche can fix that.
The first thing about finding a profitable niche that needs to be understood mostly is that it takes a lot to make it work. But the even though a well-targeted niche will take lots of effort to make it work it is still most likely to be the surest way to succeed in online business. And the reason for that is that while it doesn’t remove the challenges of a highly competitive market it at least reduces them.
So in starting up your own online business you may as well get into something that you love. That’s why almost every blog written on How to find a profitable niche will start out by telling you to first look at what your personal interests and passions are. The practical reasons for this are that you will certainly already have a lot of skill and experience in those things that you are most interested in.
However if you are like me then you will probably read that last line while thinking ‘Yeah…but….how do I know if my own passions are marketable?
Find how to market your personal interests
And that leads straight into the next vital step, which I will get to in a minute. But take note not to gloss over this first step! This first step in reviewing your passions and personal interests will make up the bedrock of How you will most effectively discover and develop your breakthrough marketing niche.
A couple of very helpful points that I have discovered in my personal online business development journey stand out.
- Write down a list of your key personal interests.
- Reflect on what strengths you have with each of these interests.
- Then research what are the market trends in each of those areas of interest.
Researching market trends
A great tool to use for this is found in Google Trends. By entering in a range of keywords around the field of your personal interest you can quickly get a picture about what the historical search volume is for your selected keywords over the last few weeks, months or even the past couple of decades. Ideally you would want to find a niche keyword that has a demonstrates a steady increase over time. But even when you may not identify any significant increase in search trends it would pay to compare it with what you know about the niche market yourself. Or even better through other peoples experience…but more on that later.
There are a number of different tools and options for researching keywords. But the Google Keyword Planner tool is one of the most accessible and useful free versions. Just note that to access the Google Ads Keyword planner tool you will need to first have opened a Google Account.
Take note of the pros and cons for selecting keyword niche with High competition and high cost-per-click (CPC) range. When entering into a niche with high competition then it is typically harder to rank for and capture traffic from. But on the other hand an upside to marketing in a High competition niche is that there is clearly evidence that the niche you are working in already has an established and proven market.
Whether you follow a niche with high or low competition – they are practically two sides of the same coin. In either case it most commonly requires a moderate to significant level of investment in time or money. If you go for a highly competitive niche you will need to invest accordingly. If you go for an undeveloped niche with little to no competition then you will need to invest heavily in uncovering/discovering that market.
Learn from the experience of others
One of the simplest ways to learn from the experience of others is to observe your competitors marketing struture. You can do this by following their social media practices. Look up their website and write down what platforms they engage with (Twitter, Facebook, Pinterest, etc.) You’ll quickly get a picture of how successful their social media engagements are simply by reviewing how many followers they have.
SEMRush is a great tool to use for reviewing the advertising practices and website rankings of your competitors too.
Connecting with Mentors and an accountability team
Although this has been the last point raised on how to find your niche in this post, in my mind, it actually comes in a close second to the priority of the first step (finding your passion). There are several key reasons for this.
Getting connected with an accountability team helps keep you on track. This is great for keeping your focus where it should be. The problem for many start-out online business entrepreneurs is that it is very difficult to keep a focus on where best to apply your resources. After all it is easy to get lost in all of the possibilities available through internet marketing and business development. And a support community can work in some ways to help keep you accountable. But furthermore a great online business support community can help start-out entrepreneurs not only in gaining the confidence and skills for building their business; it can also be a great source for generating fresh ideas for growing the business.
The Power of Community
When seeking out a helpful online business support community it would help to read the following: What are the Characteristics of a great Online Community.
Getting connected with a group of leaders that have already succeeded in building their own online business/es helps you focus forward and helps you step up to that next level. Jim Rohn is often quoted for the observation that states: “you are the average of your five closest associates”.
Getting connected with Mentors is like getting on board with a coach. Now coaches are not necessarily required for all sports or fields. But the benefits of working with a coach have helped lift the performance of most top performers in any field. That is especially the case if you are venturing into something that you do not have much experience in.
And in starting an online business having a coach or Mentor can make all the difference in getting the confidence to take the necessary steps to succeed. It can also help you access new angles and possible business development and marketing approaches. All in all, by connecting with a business development coach or mentor will help shorten your learning curve.
‘But what if my interest or marketing niche is oversatturated’
It’s a valid question to have but with a little more understanding for the dynamics of niche marketing competition you can help set these concerns aside. Oversaturation of a market or niche occurs when there are too many competitors in a given field or niche. This is what many marketers refer to as a red ocean scenario.
A red ocean strategy is what most marketers follow. And when I previously wrote about how to avoid getting stuck in a red ocean (aka blood-bath of competition) I talked about looking for a new niche altogether.
But there is another way that doesn’t require reinventing the wheel. That can be done by uncovering sub-niche markets within a broader niche market field. The key point to finding a sub-niche is working to discover new angles, perspectives and/or needs within a particular niche market. This can be done by following some basic steps for researching your chosen niche market following discussion forums on your niche market or simply looking for ways in which your chosen niche could be better served.
Find your Voice to Find Your Profitable Niche
The prime point to consider when dealing with an oversaturated market is to make sure that your own perspective is not saturated with limitations. A couple of actions to get out of an oversaturated market niche have been raised in this post. Discovering your unique point/s of difference in marketing and how they can best serve your customers (existing or prospective) is another way to find your Blue Ocean niche. And when you find your Blue Ocean niche that generates a steady following that’s when you know you’re on to a winner in finding your profitable niche.
Solutions to an Oversaturated market:
- Look for a new niche
- Uncover sub-niche/s within your chosen niche field
- Create a new market niche
- Discover how your unique points of difference can best serve your customers
Getting trained in developing my own online marketing business has empowered me to embrace the shifting chaos of the world economy right now and set up multiple income streams. Click through on the link below to get access to my Mentor’s FREE Online Marketing Workshop series.Take Action on Finding Your Niche!