By Pia Silva
If you’re anything like me, you’re always on the lookout for new, high-quality ideas that will make you money. That’s what being an entrepreneur means, right? Often, finding the perfect niche to work in is easier said than done.
The ability to identify those highly profitably markets is what makes or breaks an entrepreneur’s career. No pressure, of course. Don’t stress too much about finding the right niche, though. Use these tips to find that perfect market, and you’ll be set.
1. Identify The Greatest Problems Surrounding Your Life’s Passions
When searching for that money-making niche, the first place you should turn is toward your passions. What gets you fired up? What makes you excited to be alive? Before looking for something abstract, see what these things offer up in the way of entrepreneurial ideas. I’ve got a great Crash Course for answering the big questions.
As an ambitious entrepreneur, you may be motivated by high profitability, but a bank balance isn’t the only measure of wealth. Career fulfillment plays a huge role in building “true wealth.” Use my Price-to-Freedom Calculator to find your ‘key price’
Not only will you be happier working in a field you care about, but you’ll be less likely to burn out and more likely to give extra energy to your projects. That extra energy, almost always turns into extra success with your career.
Chances are, if you’ve experienced the problem, you’re not the only one. There’s likely to be a bunch of other people just waiting for an entrepreneur like you to solve this issue of them with a top-notch new product.
2. Verify Profitability Via Online Review And Customer Feedback
So you’ve found a potentially profitable problem within a market that excites you. Before moving forward full steam ahead, take to the Internet to check that other people have noticed this issue as well. There are a few specific things to look for to know if you’re moving in the right direction.
First, check if people are willing to pay for your product or services. Use Google, Amazon, Yelp, or even Upwork to gauge interest. Look at similar products in the market you plan to enter. It’s important to do your research and understand what customers are thinking.
After you’ve determined if people are willing to pay for this thing, figure out how much they’re willing to pay. Don’t make the mistake of skipping this step. Just because people are willing to pay, doesn’t always mean they’ll be willing to pay a price that covers all your expenses and leaves you with your desired profit.
Finally, look at whether or not people feel that paying for your potential product or service is worthwhile. There’s nothing worse than that feeling of regret when you pay for something that wasn’t worth it. You want to leave your customers feeling satisfied and willing to recommend your brand to their friends. Once you’ve verified all of these things, you’ll have the confidence need to take the next step.
3. Take A Deeper, More Analytical Dive Into Past And Present Trends
You don’t have to figure everything out from scratch. You can learn from the past. What does the history of your potential business look like? What’s been done? Analyze the trends and determine what the future could look like. To be a successful entrepreneur, you have to move forward with a plan.
A recent phone call with Dimitrios Mourlas, founder of HYPERELEON, really highlighted to me the importance of looking at trends to inform your decision. He’s built his business into a successful brand using by diving into the data.
Dimitrios told me, “Before HYPERELEON began, we saw the trends in the health and wellness industry. We saw increasing interest in nutrition and high-quality, health-boosting, 100% pure and natural products. It didn’t look like this health-focused trend would decline anytime soon. We found our niche and created a valuable product for our customers.”
Successful brands aren’t born accidentally. Like Dimitrios, the most successful entrepreneurs do their homework in advance. The extra effort you put into analyzing your potential market will pay off in the end. You’ll save yourself from investing your time and energy into a dud of a product.
4. Investigate Successful Businesses; Discover Points of Differentiation
You might be wondering if you can learn from your competitors as you are starting out. Of course you can! Not only can you, but you should be learning from the competition. Successful entrepreneurs are always learning from everyone and everything around them.
It’s okay to replicate aspects of what’s already been done by your competitors, but if you want to make a profit, you’ll need to prove to customers that your products or services are different. How does your product offer a solution that is different than other products? Those points of differentiation are the keys to showing that your brand matters.
While you investigate the success of other businesses, look into customer satisfaction. If there are any issues that customers feel dissatisfied with, that’s a perfect place to start when building your points of differentiation.
Finding your next money-making niche can be a challenge, but entrepreneurs aren’t typically in this game because it’s easy. It’s challenging and exciting. With a little bit of effort, you’ll be on your way to success.