Choosing the right online business niche is crucial for its success. However, finding the perfect niche can be a challenging task due to conflicting opinions on what makes a niche lucrative.
The first step in setting up a profitable online business in 2023 is to define the particular point(niche) you want to position in, what people consider as a niche varies depending on their understanding and expertise.
A niche is a particular section of the market in which new business leverage to avoid saturation, for example, when we consider how many websites/blogs/articles are on wristwatches. The results show an increase in daily rise since the end of the 2020 coronavirus pandemic unlike the smartwatch
One distinct way to serve a purposeful customer to the fullest is, to begin with an online business niche in 2023, irrespective of location. Increasing competition in the online space can be avoided when we have a niche that’s profitable, sustainable and has low competition.
In this article, we will discuss how to find a profitable online business niche in 2023.
Why is an Online Business Niche Important in 2023?
Before we dive into the specifics of finding an online business niche, let’s understand what a niche is and why it’s crucial for the success of an online business.
What is a Niche?
A niche is a specific segment of a market size that caters to the needs of a particular group of people. In other words, it is a small fragment with unique requirements and preferences which allows for market concentration thus yielding profit.
An online business niche can be a product, service, or a combination of both, it remains one of the unique traits of the top 10 businesses in the world such as Amazon starting as a website selling books etc
A niche can be likened to each subject in each smaller set of the Venn diagram of men shown above
In this diagram, trying to sell men’s fashion could toss you up and down with no definite direction. However, the major ideal step to follow is to
First, select an area, then another smaller subject in that area and sell. Once you are good at that you can add another similar subject in that area which can be better illustrated as niching up or down,
- niching up is expanding your niche in a way that you collaborate/complement with other similar businesses, this is better illustrated when a brand started first by selling men’s wristwatches and later joined cufflinks to it
- niching down is downsizing your business operation in a way to focus or concentrate on a smaller group of people, this is when a brand started selling wristwatches but the need or demand for wristwatch batteries and bands causes him to leave wristwatches and start selling wristwatches batteries
I hope you understand the definition of a niche, let’s explore the importance
The Important of an Online Business Niche?
In the online space, competition is fierce. With millions of businesses vying for attention, it’s crucial to stand out from the crowd. This is where a niche comes in.
i. By focusing on a specific segment of the market, you can create a unique value proposition that sets you apart from the competition (leverage ahead of your competitors)
ii. It allows you to define and build a community of interested customers who are passionate about your product or service.
iii. It ensures easy access to becoming an authority (expert) faster and conveniently without wasting time and effort
How to Find an Online Business Niche in 2023
There are different ways to find a niche for your online business. We will discuss two effective methods in detail.
Competitor Research
One way to find a niche is to look at your competitors, they are way ahead of us and analysing them can help us get more information on the market dynamics, Your competitors cut across different channels
- social media platforms
- complementary services and offers
- website traffic
Social media platforms
There are several social media platforms such as Facebook, Instagram, LinkedIn etc, to carry out competitor research via social media. Here are what to do:
- Go to the homepage of the various social media platforms, search for your niche
- Various results from individuals, pages, groups, and communities will come out,
- Different forms of content will be among the results such as articles, graphics, videos etc
- Curate and analyze the top post that appeals to your niche appropriately
Website Information
Competitor research is not limited to social media, another is the website information which can be news articles, blogs, websites etc. To carry out this kind of research, follow through this process:
- Go to google.com
- type in your niche via the search button
- It will bring out a variety of results
- From the result, determine how many?
- Analyze the first 3 pages on Google. What are they about in terms of content, page views and frequency of posts?
This is a preliminary way to search for your competitors through Google, an advanced way is discussed subsequently
Use Google Tools as a Proxy to check Commercial Value
Another way to find a niche is by using Google tools, Google is an important key to our profit on the internet because it houses and addresses about 80% of the whole human race’s queries. One way to quiz out the quantitative and qualitative results is through
- Google ads
- Google Trends
- Other similar Tools
- Google Ads
Under Tools and Settings of the Google ads, a specific tool called Keyword Planner can be used to discover keywords, search volume and forecast. You can exploit this tool to discover a list of potential keywords that set apart your competitor,
- Visit Google Ads
- Sign in with your Gmail address or start the registration,
- Go to the tools and settings section,
- On the drop-down section, click the keyword planner
- On the keyword planner, you can leverage it with the keywords in your niche or competitors’ website link
- Whatever choice is selected, a proper result sheet containing average monthly searches, three-month change, and competition score(low. high), top of the page bid (low/high range)
- this can be downloaded into spreadsheets for subsequent analysis
2. Google Trends
This is another tool that expands our competitor research relative to location-based, it gives a detailed insight into the respective location we can explore as well as a comparison between keywords. Follow the steps below
- Go to Google trends
- Insert the major keyword related to your niche
- A proper breakdown will be shown relative to the location, states, regions
3. Other Similar Tools
There are several related tools to explore aside the Google tools, examples include
- Ubersuggest
- Ahrefs
- Seorush
- Surfer Seo
To find niches with high traffic value, you can use a tool like Content Explorerunder this tools. It helps with a searchable database of billions of content pages just by setting a website traffic value filter with a minimum value of 1000 and you can determine websites and niches which are commercially feasible
Three (3) Common Problems Faced While Choosing an Online Business Niche
- Passion vs. Profit
One group of people will say to pursue something you are passionate about, or else you will fail. The other group will say to follow the money because passion isn’t going to pay the bills. The truth is both points are valid. While passion can help drive your business, it may not always lead to profitability. On the other hand, focusing solely on profit may not be sustainable in the long run. The solution is to find a balance between passion and profit. You should look for a niche that aligns with your interests and has the potential to generate revenue.
2. Low vs. High Competition
One party swears that low-competition niches are the only way to go because you can get traffic faster, and you won’t have to compete against behemoths with bottomless wallets. The other side says that you have to go for high-competition niches; otherwise, you’re limiting your earnings potential. The solution is to find a niche that has a balance of competition.
3. Micro vs Broad Niche
Selecting between a micro and broad niche can be challenging especially when you consider various products or services you stand to gain or lose, however here is a scenario that illustrates micro and broad niche
Consider yourself a beginner with little or no expertise or skills and you are to consider between Laptops backpacks (as a micro niche) and bags (as a broad niche), It might seem very lucrative to begin bags because there are several products to consider such as handbags, shoulder bags, waist bags, wallet, phone bags, lunch bags etc and in the real sense laptop backpacks seem very limited
This is a big challenge to beginners but here is what I want you to know, several big companies we know today began with a micro niche to streamline their operations, minimize overhead costs and identify their customers. A micro niche ensures efficiency more than density.
5 steps to the profitability of an Online Business Niche?
There are thousands of niches out there that you can choose. Unfortunately, not all niches are profitable, and not all will appeal to you. However, here’s how you can find a profitable niche for your online business and get on the path to success.
1. Identify Your Passion and Expertise
The first step in finding a niche is to identify your passion and expertise. This can be anything that you enjoy doing or have expertise in. For example, if you’re passionate about fitness and have a background in personal training, you could start an online business that offers fitness coaching or sells fitness equipment.
Tips for Identifying Your Passion and Expertise
- Make a list of your hobbies and interests
- Identify your professional expertise
- Consider the problems you can solve
- Write down every thought/idea that comes to mind
- Think about the industries that are growing
2. Research Your Competition
Once you have identified your passion and expertise, it’s time to research your competition. Look at the competition/existing businesses in your niche and see how they are performing. A good example will be to enter the keyword (topic) in Google search, and the first page of results is your competitions
This will give you an idea of the demand for your product or service and the level of competition you’ll face.
Tips for Researching Your Competition
- Use Google search to find businesses in your niche
- Check out their websites and social media profiles
- Look at their pricing and offerings
- Read customer reviews to understand their strengths and weaknesses
3. Analyze Market Trends
Market trends can provide valuable insights into the potential success of your online business. Analyzing market trends will give you an idea of the demand for your product or service and the overall growth potential of your niche.
Tips for Analyzing Market Trends
- Use Google Trends to identify rising trends in your niche
- Read industry reports and publications
- Follow industry influencers and thought leaders
- Attend industry events and conferences
4. Use Keyword Research
Keyword research is an essential tool for finding a profitable niche for an online business. By using keyword research tools, you can
Tips for Using Keyword Research
- Use Google Keyword Planner to find popular keywords in your niche
- Look for long-tail keywords that have low competition
- Identify the keywords that your target audience is searching for
- Use keyword research to optimize your website and content for search engines
5. Understand Your Target Audience
Understanding your target audience is crucial for finding a profitable niche for your online business. You need to know who your potential customers are, what they are looking for, and how you can fulfil their needs.
Tips for Understanding Your Target Audience
- Conduct surveys and focus groups to gather information about your target audience
- Analyze customer data and feedback to understand their preferences and pain points
- Create buyer personas to identify the characteristics and behaviours of your ideal customer
- Use social media and online forums to engage with your target audience and gather feedback
Look at the five top topics that you research and make your decision. You want to make sure that you choose a niche that will be both viable and profitable, based on your keyword research, as well as one that interests you. If you aren’t interested in the niche you choose, chances are you won’t last very long in the business.
Once you’ve chosen a niche market, you can start to create the products you want to sell and identify and build your audience.
In conclusion, choosing a profitable online business niche requires research, analysis, and careful consideration.
To be profitable in any online business, it’s imperative you choose the right niche which requires a combination of personal and business decisions.
It is also essential to strike a balance between personal interests and business profitability. To find the right niche, you must pay attention to everything discussed in this article as it can increase your chances of success in your online business.
What makes an online business profitable? Kindly comment below and how do you hope to move from today
3 comments