Finding the right niche is crucial. All the efforts, time and money that you invest in your online business can be wasted all because you picked the wrong niche when starting.
So today I’m going to show you 3 steps that you can follow to find a profitable niche market so you can actually grow a successful online business.
Step 1: Find your niche
Here are a few ways to find your niche:
Way #1: Find your niche by choosing something you are passionate about. You’ve probably heard this a thousand time but building a business around your passion(s) can be an easy and logical way to find your niche.
eg: You’re passionate about snorkeling => choose the snorkeling niche
You love writing => choose the copywriting niche
Way #2: Find your niche based on the requests you get. If people often ask you for a specific advice or service…it probably means that you have some skills or knowledge that you can monetize. That’s how you can figure out what niche to tap into.
eg: Some friends ask you sometimes to help them with their video editing => choose the video editing niche
Way #3: Find your niche by choosing something you want to learn. We all have things we’d like to learn or to be better at. Maybe you want to learn to draw or to code… Well guess what? You can use this desire to find your niche.
If you want to learn to draw for example, you can choose the drawing niche and build a blog and community around it.
Now you are probably wondering:
“But how can I start a business in a niche that I don’t know anything about?”
Great question. Well you don’t necessarily need to be an expert to start a business… I explain everything here: Start an Online Business without any Skill or Knowledge
Step 2: Conduct market research
Once you’ve found your niche market, you have to conduct market research. This step is very important. The market research will allow you to know:
- The existing demand in your niche
- The profitability of your niche
- The competitiveness of your niche
These information will then help you make a choice of whether you should build a business in this niche or not.
Let’s take a look at a few ways to conduct market research.
Keyword planner is a little tool that allows you to know the volume of searches that a keyword get. So for example if you type in “How to draw cartoons” in Keyword planner, you will be able to see that there are 27,100 searches/month for that keyword.
Keyword planner is useful to get a rough idea of how big your niche is. It also allows you to know whether there is actually an existing demand. If “How to draw cartoons” get 27,100 searches/month, it means that there are thousands of people out there who want to learn to draw cartoons, which indicates that there is an existing demand.
Let’s see exactly how you can use Keyword planner to both know the size of your niche market and make sure that there is an existing demand.
Step 1: Go to Google Adwords and click on Sign in (or create an account if you don’t have one, it’s free)
Step 2: Click on “Search for new keywords using a phrase, website or category”
Step 3: Search for keywords that are related to your niche. So for example if you’ve chosen the drawing niche, you must search for keywords like: “How to draw” ”Drawing for beginners”…
Step 4: Click on “Keyword options” then “Only show ideas closely related to my search terms” save this option and finally hit “Get ideas”
Step 5: Click on Keyword ideas
Then if you scroll down, you will see other keywords that are related to your niche. To figure out the size of your niche market and make sure that there is an existing demand, you need to look at the first two columns, Keyword and avg. monthly searches.
If you find that most keyword ideas get thousands of monthly searches or a even a few hundreds, it means that there is an existing demand.
Let’s take another example. Let’s say that you’ve chosen the Malagueñas dance niche, and that you type in Malagueñas in Keyword planner, you will get the following result:
When that happens, it means that the search volume for this keyword is very low, and that there is almost no demand in this niche.
If you find yourself in this situation, it probably means that your niche is too narrow and that you have to make more research to find a broader niche.
For the Malagueñas dance niche for example, I would turn this narrow niche into something broader like Flamenco dance. When doing so, I would notice that there is an existing demand in this niche.
So Keyword planner is the perfect tool to find out whether there is an existing demand in your niche.
Now let’s take a look at your niche competition.
There is actually a small trick that you can use with Google search to figure out whether your niche is competitive.
The Google search hack
To find out whether your niche is competitive make a few Google research and add “allintitle:” before your keyword.
If for most keywords, you see that the number of results is above 5,000 it means that your niche is very competitive. If you get an average of 500 to 5,000 results, the competition is moderate. If it’s less than 500 then it’s really easy to rank and get visible very quickly in that niche.
Let me show you the step-by-step process with the drawing niche.
Step 1: Make a list of keywords
First you need to make a list of keywords
- “How to draw cartoons”,
- “Drawing for beginners”
- “Draw like a professional”
Of course the more keyword you search, the better your market analysis will be.
Step 2: Do a keyword research using allintitle:
“How to draw cartoons” gets 50,100 results, which means that this keyword is very competitive.
Let’s do another keyword research
“Drawing for beginners” gets 19,000 results, that’s still very competitive.
Let’s try with “Draw like a professional”
884 results, this one is less competitive.
If I keep doing these keyword researches and notice that for every keyword I search, I get on average more than 5,000 results (even for keywords that have more than 4 words), I can assume that my niche is competitive.
Step 3: Take a decision
After conducting your market research, you’ll find yourself in one of the following situations:
- Your niche has no demand (or a little)
- Your niche has an existing demand and no/little competition
- Your niche has an existing demand and a lot of competition
Let’s see what you need to do in each situation
Your niche has no demand (or a little)
If there is little or no demand in your niche, it means that your niche is too narrow and that you need to find something broader. In other words you need to go back to your niche research and find a broader niche.
eg: You found the Malagueñas dance niche and realized after the market research that the niche is too narrow. You decide to choose something broader like flamenco because there is actually a demand for it.
Your niche has an existing demand and no/little competition
The niches that have an existing demand but no competition are the best ones. If you find one, go for it!
Your niche has an existing demand and a lot of competition
Many people tend to think that picking a highly competitive niche is a bad move because it’s hard to build a successful business when the market is crowded… Sure, it’s harder but it doesn’t mean that you must avoid competitive niches at all cost. If you manage to differentiate yourself from the competition in a meaningful way that resonates with your market, you’ll succeed. Even if there are billions of companies in your niche, if you are different and bring value, you will stand out and be successful, period.