How do you find a profitable niche for your business? What will ensure your startup success?
Not even Google can be everything to everyone. They certainly didn’t even start out in maps, autonomous vehicles, drone delivery, video, or online pay per click ads. They started with a niche, gained a profitable foothold in the world and built a massive enterprise on top of that.
No matter how grand your big vision is, and even if you hit the ground running with billions of dollars in venture capital, you can’t be too broad at the beginning. You can’t spread yourself too thin. You’ll burn your resources, fail to get traction, won’t be strong in any area, and you’ll be vulnerable to many, many competitors.
If you want your startup business to survive and thrive, you have to pick a focused niche to start with. Then build on it and expand. To get to this next level you also need a niche that is truly profitable. So, how do you find and pick one especially for those that are wondering how to start a business in a few hours?
What Niche Can You Embed Yourself In?
When figuring out how do you find a profitable niche for your business, it’s far better to be able to really embed yourself in the space you want to start in. It will give you proximity to customers. It enables you to watch and understand their problems, to speak with them, get feedback and see how they are really using the first versions of your solution.
This may be a specific geographic market like New York City or Seattle. Or it can be a much tighter niche within a specific market.
For example; in real estate, a tight niche would be luxury condos in Manhattan, which are brand new construction and start at $1M and up.
In fitness, it could be US yoga instructors with their own studios and at least 20 students enrolled. Or it could be yacht owners with vessels at least 100 feet long and who dock in South Florida.
These are examples of niches that you can go embed yourself in to understand better and build a network. In these cases, you can go to Realtor and builder events in Manhattan, visit these yoga studios as a practitioner or national events where they congregate or spend your days at waterfront restaurants and bars in Fort Lauderdale.
What Will & Won’t Change In 10 Years?
Asking these two important questions has been in the DNA of some of the most successful supersized startups when thinking about how do you find a profitable niche for your business.
Think Jeff Bezos and Amazon. Be careful of jumping into a niche just because it is hot today and has been growing for the past five years. It could be dead tomorrow.
Instead, consider what won’t change in 10 years. What will people still need and do in 10 years from now?
Then ask what is likely to change? How are new technologies creating new platforms that the tools and experiences of tomorrow will be built on? What are the most pressing problems people and other businesses are likely to have in 10 years from now?
How Big Is This Niche?
Maybe you’ve already shortlisted a few niches you are interested in exploring. How big are they? What is the size of the total addressable market in these niches?
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