I know you have this question while entering a niche or researching the internet to select a profitable niche.
Everyone has this one question mining their mind when they begin their hustle journey.
So, do you have your answer already? If not, you have come to the right place.
I am writing this blog just for you.
I know how confusing it is at the starting phase because I had the same confusion as you.
I will share how I overcame my confusion and started the journey into my niche. So you can do the same.
Why Select A Niche?
Think of a world where everyone is doing everything.
There will be no experts. There will be no innovation and creativity.
When you do all the work the same as me and everyone else, there is a limit to what all of us can do.
If you, me and everyone are doing different things, you will have time to upgrade your skill in that area and become an expert in that field.
Which, increases productivity, creativity and other elements in that domain.
Say if all are fishing for them. You all catch a fish for a day because you need a fish for a day.
If the work is split and you are fishing for everyone in a given community.
On day 1 you catch a fish for everyone while everyone does a different job.
When the days pass you have the expertise and skill to catch 5 fish for everyone in your community.
As the days pass, you fish even more and your community can trade fish with your neighbouring community for anything you want.
This is why you should have a niche. To grow your expertise by focusing on and learning a single field rather than everyone doing everything.
Why is it necessary to have a narrow niche?
You may think, is it necessary to have a niche? Can’t I supply all the demands or Can I solve all the problems?
Take a scenario of a doctor in general medicine, you provide Rs.500 to a maximum of Rs.1000 to him as fees for a consultation.
Whereas if the doctor is specialised in a certain field, say he is a neurosurgeon you consult him even if his fee is even more than Rs.10,000.
That is the power of being an expert in a niche rather than being an all-rounder.
So, now you know why selecting a narrow niche is more important than being a generalist.
When you start, go narrow as much as possible, and then you can expand your niche little by little if you want after reaching the threshold.
Can I Pick a Profitable Niche And Grow?
If you search the net for a profitable niche, there are various sources to tell this is the profitable niche, this is the niche where you can see more money and have less competition.
But have you ever considered will that work for you?
If I give you a 10 list of niches and say these are the top 10 profitable niches in 2022 and you are not good at any of the niches I have given, but good at some other thing other than this.
In this case, will you become a successful entrepreneur if you choose from the list I give or from what you are an expert at?
No, You must go with what you are good at despite being approved by someone’s thought or analysis.
There is no such thing as a profitable niche in the market. In every niche, there is a demand to be supplied, and a problem to be solved.
Rather than researching for a profitable niche, research for the problems and demands in the market.
Factors considered for niche selection
When you choose a niche, consider your passion, talent and the market.
You may choose any niche and build it, it will go well at the beginning due to your excitement. But will it continue?
It depends. If you choose a niche that you don’t have much interest in and just because you found that it is profitable to someone you know.
You won’t sustain for long. When you hit a recession point all your drive to go forward in that niche will go.
That is why your niche and passion should go along with each other. So, you can cross the recession period and come strong into the market.
Make a list of what you are passionate about, what you do in your free time, and what books you read.
Ask your parents and friends if you are not sure what your interest is.
Will the market give you money if you have passion for some topic? Definitely no, you need the skills.
From the list of interests, you have made earlier select the topics and check what related skills you have in those.
Make a list of things you learned recently, your work, and your field of expertise because people will give money for your talent and expertise but not for your passion.
Analyse the demand or problem in your niche and create a product or solution which is most needed in that niche.
Research your competitors in that niche and analyse what they do.
See how you can stand out in that competition.
Choose a niche with the combination of the above three factors.
You can always develop the third factor if you got two factors right.
Like, if you have a passion for a niche and also the market requires an expert in it, you can learn the skill.
Sometimes, you don’t know you have a passion for a niche until you start learning it.
Be No.1 Or The Only One
Being No.1 in your niche takes time and consistency. So be patient and do what you have to do till you are recognised.
Else, you can be the only one who can provide two services which are related to that niche.
For example: If you are an experienced web developer, rather than choosing only web development. Learn digital marketing and provide the service with both skills. So, your customer doesn’t have to hire or outsource a digital marketer. And you stand out among your competition.
The Growth Cycle (MassTrust Blueprint)
You have to treat the selection of a niche as a never-ending cycle.
You select a niche and learn about it before you start working on it. Blog about it, then give consultations and mentor others about it. Then with the community and trust, you make a start-up and introduce your product.
Then, you dive deep into the niche or expand your niche and repeat the cycle.
I believe this is the way to growth. You should never stop learning.
What Happens If I Realise That The Niche Is Not For Me?
In any case, even after you try these steps and you realise that the niche is not for you or you couldn’t do well with your competition, What will you do?
I know you are thinking about that.
Don’t stress much about that and begin your journey with what you choose.
It is just a niche, not your life. You have second chances. It is not like you are going to die, only your birth and death have only one chance.
But business gives you a lot of chances if you have the mindset to learn from your failure.
What if I say that the top brands which you know for a specific product didn’t start with that product?
Nokia initially opened a pulp mill and was making papers.
Nintendo started with playing cards.
Colgate started with soaps, candles and starch.
LG was into hygiene and cosmetic products.
Avon and Wrigley’s chewing gum was initially given as freebies for different products and because the freebies became more popular than the product itself the owner changed the freebies into products halting the previous products.
Even, though I had a start-up related to vehicle service due to my health issues and financial issues due to covid-19. I had to shut it down.
But I learnt a lot from it. My marketing skills have improved. I can understand my audience very easily now compared to my initial stage. That is my growth through my journey.
In your growth chart, only the zero to one is the difficult journey. But then, one to ten or hundred is not that difficult.
So, make your move with confidence. Mindset is the key to success.
All the best in selecting your niche and the journey up ahead.!