1. Identify your skills, areas of interest, and what you are truly passionate about. Many of the most successful companies in the world today are run by people who are remarkably enthusiastic about their business. It’s no use starting a business just for the cash or money, you would soon find yourself exhausted and worn out when the big challenges arrive as you don’t have any interest towards your business to keep you going. In other words, the more passionate you are about your business, the more effort and energy you would put into your work, which produces better quality results.
2. Check the demand/ search volume for the area of interest which you intend to go into. Starting a business without checking whether there is a demand in the market would be like trying out your luck- you end up losing money and wasting your efforts if you lose the gamble. So, make sure that you conduct proper market research and ensure that there is sufficient search volume/ demand in the market for your product.
3. Find a more specific/ targeted market within your broad area of interest. Now you have already confirmed that there is sufficient demand in the area of interest you intend to start a business in, so you have to start narrowing down to find a more targeted market to sell to. It’s no use starting a business based on your broad area of interest as the competition would be way too humungous and you would have difficulty surviving. So, find a market that is more specific so that it would be easier to dominate it and get your products across to the customers. Examples of targeted niches include: football tactics for beginners (football), bird watching advice for the elderly (bird watching), and training your Chihuahua to fetch newspapers (dog training)!
4. Look at the potential profitability of your target market. Check whether your market is profitable enough for you to start a business in. Even though there may be demand in your niche market, but people may not exactly be willing to pay for products if what they are looking for are mainly free information. So, you do not want to start a business only to find out that your “hungry” market is actually looking for free solutions to their problems. A tip to check the profitability of your market would be to check the number of advertisers in your niche. If there are a significant number of advertisers, it means that your niche has real profits to be made, hence allowing these advertisers to continually pay for ad costs. Also ensure that there are enough keywords in you niche for you advertise, so that your PPC cost will be kept as low as possible and thus increase your profit margins.
5. Make sure that your niche is not overly competitive. Creating a business in a market flooded with millions of other competitors would only give you a hard time. Hence, check out the competition before you jump into starting a business. Make sure that you market is not overly saturated by similar products you intend to promote, and that there is still space for you to join the group and come up with a unique advantage that allows you to dominate the market. Lesser competition also means that you would have a higher chance of ranking in the first page of search engine results, and thus boost your traffic volume.
6. Analyze and study your competition to beat them at their game. Take a look at the top few sites that are marketing similar products as what you intend to sell. Study it carefully and tap into their strengths and weaknesses. Come up with a unique selling advantage that attacks all their weaknesses and market your product around that area of improvement. This would help you dominate the market as you are selling your product based on customer frustrations around your competitors’ products.
7. Invest in a proper software that gives you detailed figures about the niche and analyses the future costs and profit potential of staying in that market. The 6 steps shown above would help you get a rough overview and understanding of your market, but they are definitely not enough if you want to get the solid numbers so that you can comfortably build your business without worrying about whether it will fail. The only way to do that would be invest in a proper program that gives you these hard facts for you to take into consideration. Such software can easily be found in the market for less than a hundred dollars, and are definitely a worth investment if you want to make stable online profits in the long term.