Start by making a list of possible niches for your business. Brainstorm interests that you already participate in, hobbies that you wouldn’t mind turning into a business, specialties or training that you already have, and previous work experience that could potentially turn into a business.
Next, choose the top five ideas that you are most interested in turning into a business. Running a business takes a lot of time and commitment, so you want to pick a topic that you are passionate about. If you don’t enjoy the niche, you won’t be as motivated to work hard to make it a success.
Once you have a shortlist of ideas, it’s time to research them to see which one has the best potential to turn into a profitable online business.
- Google search. Research the popularity potential of each idea. You want to look for a topic that is popular enough online and in search engines that you know plenty of customers will find you. Do a Google search of keywords related to your niche. Look for a robust search results page: websites dedicated to the topic, articles written about the topic, blogs, products, and other online businesses in that niche. Competition is a good thing: it means there is a market interested and ready to buy. If you don’t find many results for your topic, there probably aren’t many potential customers online.
- Keyword search. Use a keyword resource, such as Google AdWords Keyword Planner or Answer the Public, to search for the keywords you already looked up. You want to find popular search terms that lots of people are already searching for. If you see above 10,000 searches per month for your “main” keyword and 50,000 total for the other related but more specific keywords, that indicates a strong niche for your online business.
- Look offline. Visit your local bookstore or magazine stand. If there are publications that cover your niche, there is probably profit potential in that market. You can also look for digital publications related to that niche or industry, which are both good for research and potential sites where you can establish your expertise and market your business.
- Check affiliates .Search affiliate marketing sites like Clickbank for products related to your niche. If there are many products available, that means a ready market.
- Social media. Look at social media platforms like Instagram to see what hashtags and content related to your niche are popular and how many people follow or use them. This will give you an idea of how large the audience for that topic is.
Once you have finished your research, you should have a good idea of which niche will be the most profitable for your business. And as a bonus, you should also have ideas for products you can sell, what type of customers are interested in your niche, keywords you can use for search engine optimization, and how to start growing your social media presence.
Having this information, along with a clear niche and purpose for your business, will make the process of launching and growing your audience quicker, smoother, and more profitable.