3 Steps to Finding A Profitable Niche For Your Online Business ...

3 Steps to Finding A Profitable Niche For Your Online Business

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When you start a business and say it’s for everybody it will be for nobody. That’s why you need to define your niche quickly.

Talking to a small group of people and being able to help that small group gives you and your business an edge in the marketplace.

Defining your profitable niche does not have to be stressful or complicated. The number 1 mindset you need to have when you’re just starting your business is that you don’t have to marry your niche you can date a niche for 3-6 months and if it doesn’t work you can tweak your niche or change it completely.

But first let’s talk about what a niche is?

What is a Niche?

A niche is a mix of 3 things:

  1. The PEOPLE you serve [WHO]
  2. The situationally-specific PROBLEM you help them solve [WHAT]
  3. Your special branded SIGNATURE SYSTEM [HOW]

So that’s WHO you work with, WHAT you do for them and HOW you do it for them.  

profitable niche

The Importance of Finding a Niche

It’s essential that you put the time and effort into really focusing on finding your niche.

The biggest mistake a newbie online entrepreneur can make is to skip over this step.

You make your life harder by not knowing what to talk about, who you’re talking to, not creating products and services that will sell and not being able to create a marketing message that connects.

You waste your time and leave money on the table by not defining your niche right from the start.

When you have a defined niche you can build your reputation in one niche and that reputation can take you anywhere. Your clients will seek you out when you focus on solving their problems.

What You Need To Know Before Finding Your Profitable Niche

Before creating your niche there are 2 things you need to know.

1: How You Bring Value

When you know what you’re good at and how you can be most helpful to people, you’ll not only be able to clearly tell people what you do but also quickly qualify who you can help.

So, if you’re a great communicator with lots of confidence, you can become a Communications Coach helping people who struggle with communication to become better communicators and build better personal or business relationships.

Or you could become a Confidence Coach, helping people to build their confidence through developing their communication skill.

The key takeaway is that when you know what you bring to the table you can communicate it to others in a way that attracts your tribe to you.

2: Know What You Love

If you build a business on what you hate you won’t get far. And what’s the point of that, you might as well stay at the day job you hate. 

Whatever niche you choose you should love doing it, love hanging with the people in your tribe and love helping them. 

So start to think about the people you like working with, the skills you have that you enjoy using and the markets you’ve worked in that you enjoyed.

Finding Your Profitable Niche Made Simple

Once you are clear on the above you just need to work through the next 3 steps to finding your profitable niche in a simple way.

1: Choosing a Profitable Market

Your first step is to choose an overarching market. Some of the most profitable markets are:

  • Health & Wellness
  • Finance & Wealth 
  • Business & Entrepreneurship
  • Dating & Relationships

Choose one based on what you’re good at and what you love then move onto the next step.

2: Identifying & Brainstorming

This stage is about identifying your tribe and ideal client. Your tribe is a specific group of people you want to work with, for instance, “female entrepreneurs”. 

Your ideal client would be one specific person within your tribe. So that would be Jane, aged 28, College graduate, working a corporate job as a Business Consultant while building her business in the evenings and weekends.

So within a tribe, there will be several ideal clients that you could help. This stage is about identifying and brainstorming all the types of tribes within your chosen market and the different ideal clients within the tribes.

Then narrow it down to the one tribe and ideal client you want to work with.

3: Testing Profitability

The final and most important piece of information you need to choose your niche is if there are problems to solve and if there are enough people looking to have the problem solved in your chosen niche.

You want to know the following:

  • What problems does your niche need to be solved?
  • How big is your niche?
  • Are your ideal clients willing to pay to solve the problem?

It’s time to see what people are asking for help with. 

The quickest way to find out what people want is to jump into a few Facebook groups within your chosen market. Where your tribe hangs out.

Then search the following terms to see what people are saying;

  • “need help”
  • “newbie”
  • “question about”
  • “desperate for”

Then use tools like Google Trends and Ubersuggest to see how many people are looking for solutions within your niche.

You’ll soon start to see a pattern of what people need your help with.

Now You Know, What’s Next……

You’ve done the research. Found what people want. Know what you can bring to the table. You’ve found the perfect niche. But how do you put it all together, to let the world know who you help?

You’ll use this valuable information to now create your simple and clear marketing message then start connecting with your niche wherever they hang out online & off.

When it comes to building a profitable business you’re excited about, you need to focus on your niche.

Once you know your niche, you’ll be able to create valuable content, produce great products and services your tribe will love. All because you are focusing on one specific area they need help with.

Your focus isn’t just about marketing yourself in that niche but about really knowing that niche, becoming an expert. The go-to expert that others in your niche recognise and want to work with.

Now that you have your niche narrowed down, it’s time to move on to the next important stage. Connecting with your tribe and creating products and services they’ll love.

If you’re looking to get started with any of these steps, check out the Build Your Business Vault – where you’ll find templates, worksheets and checklists that will help you with discovering your niche!

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