Just like choosing between a business or job is important, selecting a niche also matters. it can be a life-changing decision. Many business failures are a result of selecting the wrong niche. Here we will provide suggestions and tips to help you understand the best way to proceed.
Some businesses need small investments while others need big investments. Some businesses only help you pay bills and some can make you rich. Some ventures require only a few hours a week while some need 10 hours a day or much more. It’s important to think about each aspect before making a decision. Let’s take a look at the key factors one by one.
1. Interest –Being truly interested in the selected field will be a big plus for your business. Interest shows that you are passionate about it, are eager to gain more knowledge, and will always work to make it better. For example, Remember? Sometimes we solved math problems in our dreams when we were in school, So interest in math may have led many to choose engineering as our career. Same applied online, If we are truly interested in the niche we select, we are able to provide better solutions in that field. That’s why a lot of people say that, in order to get success, you must choose something that you are interested in and passionate about. When we lose interest in a business venture, it is usually because we are doing something we’re not really excited about. Therefore, interest is key for long-term business success.
2. Know Your Strengths and Weaknesses – Remember that you are not expert in everything. For instance, you may or may not be good at writing, designing, planning, marketing, relationship management, etc. Knowing your key strengths as well as your limitations will help you choose the right niche. Additionally, it will help you understand for which parts of your business you will need to hire people, which will also affect your budget.
3. Demand – Most of us like to choose a niche with high demand. There are a number of free tools online to help you with this. To check keyword searches, for instance, you can use Google’s Keyword Tool. Also, you can use Google Trends or check online magazines or newspapers to find out what is trending and in demand.
4. Competition – High-demand niches usually mean high competition. Good research comes into play here to help you select a high-demand niche with less competition. The Google Keyword Tool External also gives you an idea about competitors in that field. These days, however, it’s very hard to find a high-demand niche with little competition. Below are a couple of alternatives to compete within high-demand niches.
If, for example, you wanted to compete within the weight loss niche, it may difficult to compete with large websites since it seems like every third person in the world is after the weight loss niche. To overcome this, choose a part of that niche. For example, instead of just choosing “weight loss,” choose “hcg for weight loss” or “swimming for weight loss.” You can get a number of smaller niches that way with much less competition.
There are a number of sub-niches with minimal available information. If you succeed in identifying these areas, you will have a good start for building a competitive business.
The best part of these alternatives is that, after awhile, there is a chance to get good positioning for keywords within the main niche (like “weight loss” in our example above). Also by this you can work on your interested niche, No need to leave it due to high Competition.
5. Time you can invest – It is also important to know if you are starting an online business as a full-time or part-time gig. While some businesses need a full day of work, others may only need two hours a day. For instance, if you are starting an e-commerce business and you can invest full time, then you can select a business in which you have inventory since you’d have the time to ship products and provide quick support. If, however, you can only dedicate one or two hours a day, then you should go with an affiliate website to avoid the hassles of shipping and support. This is only one aspect to consider; there are many other things that depend on the time you can invest. Always choose your online venture based on your time availability.
6. Good Monetization Methods – Yes, sometimes it happens; we choose a niche with little to no room for much monetization. You must research your niche and determine if there are good earning options, such as having multiple products (virtual or tangible) or having average CPC (Cost per Click) in adsense ads, etc. Another important factor is choosing a product-related niche with average prices that are affordable to most people. While high-priced products usually attract fewer buyers, low-priced products result in less commission. Choose a product niche with affordable prices to get more sales.
Yes, I know it may be difficult to choose a niche that meets all the factors mentioned above. However, dedicate the proper amount of time to filtering your niche instead of just making a quick decision. Always remember that thoroughly planning for your business will strongly increase your chances of success.