How to choose a niche to earn?
When we think about opening our own business or online store, when we want to run our own blog or put a product on the marketplace, we think about how to choose a niche to earn.
The market in the economy is a set of economic relations between the seller and the buyer, which are based on a regular exchange on a voluntary basis.
Most often, the market is segmented into categories of goods: consumer goods, industrial goods, auxiliary goods and services, etc. There are other classifications: by place of production, seasonality, origin, significance, etc.
Accordingly, a market niche is a narrow market area with its own range of consumers. The most successful businessman will be the one who finds a low-competitive niche with high demand. The choice affects the profitability, the life of the project, its competitiveness.
How to choose a business niche for an entrepreneur
Start by choosing ideas. Identify your strengths, analyze what you excel at and what you enjoy doing. Is there an area in which you are an expert? Try to remember what problems a certain audience has and how they can be solved. Analyze trends and pay attention to those that already exist abroad, but which have not been available recently. So, for example, the company Candlesbox appeared – a boutique of fragrances for the home.
A good way to find out if there is demand for something is to check Yandex Wordstat and Google Trends. For example, you want to sell designer perfumes in St. Petersburg. Make a request "Author’s perfume in St. Petersburg + buy" and see how many people were interested in this. Another tool: social networks. How many businesses are related to the product you want to sell?
Make a list of 5-10 possible niches. Consider the nuances: do you already have a team for the project or need to assemble it, how solvent the audience will be, how clear the work algorithm itself is to you.
- Rising markets: when demand exceeds supply. This is the best moment to start.
- Poorly developed niches: This has been especially true in the service industry lately.
Think of a unique selling proposition and test several niches. Not everything can be predicted from charts and the number of queries in search engines.
Examples of promising niches: food delivery, online courses, development of business automation services.
How a businessman to choose a niche for an online store
First, let’s define what niches are in general:
- Trending involves the sale of goods for which there is a very high demand. On the one hand, this is an opportunity for a quick start. On the other hand, a business can “get old" before you have time to sell or reorient everything. For example, antistress toys are quite popular. Then, for a while, the demand for spinners increased, then slimes, and so on. If you have chosen a trending niche, you will have to follow the trends and be able to quickly change the range.
- Seasonal and non-seasonal. In the first case, there is demand for a group of goods only for a certain period of time, in the second – all year round. For skates and skis we go closer to winter, for a swimsuit – in summer. Unlike these groups, office supplies, cosmetics, products are in constant demand. You can select several categories of seasonal products and change the assortment. For example, boots appear in shoe stores by the summer, and sandals by the winter.
- Visible niches include obvious things: they surround us, we often use them. Phone or computer, dishes or furniture, etc. Invisible niches: these are parts, consumables, etc. There is less demand for them, but less competition.
- Broad or Narrow: The more potential buyers you have, the wider your audience. For example, a cinema “for those who love films” and “cinema for comedy lovers – the first niche is much wider than the second. When choosing a narrow niche, remember that it is more difficult to find your audience in narrow niches.
First, when choosing a niche for an online store, you need to take into account the cost of the goods: the lower it is, the easier it is to sell it. It is easier to part with 300 rubles than with 3,000, and so on. On the other hand, it may turn out that it is more profitable and faster to sell one expensive product than thirty cheap ones.
Secondly, pay attention to the dimensions of the goods: it depends on how difficult and expensive it will be to deliver it. In addition, try to choose niches with the possibility of upselling and repeat sales. For example, if you sell history courses, you can sell the dictionary extra. Then you will release a new course, for example, conversational English, and the old client will return to you.
How to choose a niche for a blog
“How to choose a niche for a blog” is another way to ask what a blog is about. If there is no clear understanding of the topic, a blog, whether it is a website or a page on a social network, turns into a platform with discussions and sketchy thoughts of the author. Here are a few steps to help make niche selection easier:
- Determine the topics you are interested in and the audience you would like to write for. Think about the books you read, conversations with friends, your hobbies and accomplishments. Many people are afraid to take on a topic in which someone understands better than they do. This is a mistake: if someone is even a step behind you in something, you can write about it.
- Analyze the keywords and top sites for the topic you plan to use. Pay attention to what products and services are on the sites, what content is posted on them, what could be done better.
- Think about how long the chosen topic will be popular. It takes at least a year for a blog to become popular, so avoid topics like “World Cup 2022” and the like. If it’s an innovation that’s been happening in the last few months, look for something more robust.
- Is the theme growing in popularity? If so, then the chart in Google Trends should be ascending. Analyze different periods of time: if the graph for the last year looks flat, the popularity of the last few years is likely to be declining.