Deciding how to choose a niche for your online business poses a few difficulties.
The internet is bursting with so many opportunities that actually settling on one and making it work is one of the hardest decisions you’ll need to make in the beginning.
You may find yourself bouncing around from one idea to the next, always chasing after something that fits a ‘golden criteria’ of being insanely profitable, easy to establish yourself in and something that you have a strong and lasting interest in.
Instead of actually starting your business, you become paralyzed by indecision as you weigh up all the pros and cons of an endless stream of possibilities.
One of the most frequently asked questions when people seek advice to finally solve the problem of choosing a niche is whether it’s better to pick a niche that has a lot of revenue, or one that you’re passionate about.
Both approaches have their die hard fans, so let’s take a closer look at each camp.
The first order of business for any business is to make money.
Fail to do that, and you’ve got a hobby at best and a shortcut to bankruptcy at worst.
So when you decide on exactly what niche to focus on for your online business, choosing the one with the most money to go round is a fairly logical action.
However, the niches with the most money also tend to be saturated with heavyweights that make it incredibly expensive to compete with, unless you can somehow do something completely different.
So right off the bat, you’re facing some really difficult barriers to entry. Entering a new niche with the goal of dominating or even just making a little profit will usually require a large up-front marketing investment just to get noticed, and after that you’ll also need a product or service that your target market would prefer to that of your competitors.
However, it’s not all doom and gloom.
Many giants in a niche will often have highly attractive affiliate programs that will make your entry to the niche a little easier. Provided you can meet their prerequisites, which tend to be based on traffic volume, this can be an attractive option.
This is far from your only option.
Determination can take you, and your business a long way. The last couple of decades alone are full of new businesses emerging from the most unlikely places to oust goliath competition on nothing more than a shoestring budget, business savvy and the ability to figure out what customers and clients want before they can.
Taking the less direct route to a successful business can pay off.
Online business is constantly shifting and evolving. Succeeding in the face of such challenges means you have to be, at the very least, equal to them.
Market research, producing content, building a client base and all of the other tasks you’ll have to do take a lot of energy.
Having a deep fascination and boundless curiosity in your niche is perhaps the greatest asset you will have, as it will enable you to push through the long, difficult periods where you don’t have the luxury to take time off if you want to succeed.
If you don’t care about your work, the quality will suffer and so will your business in turn.
Choosing a niche based on your passions can also help you to literally create a niche out of nowhere. Chasing after money keeps you one step behind the innovators and early adopters who will make it big whilst you’re playing catch up.
But even with this, choosing a niche that you love but nobody else does is more befitting a vanity project than a business. If you can’t see ahead into the future to determine exactly how you’re going to transform all of your energy into a profit – the realities of day to day life will eventually bring it all crashing down around you.