The key to running a successful online business, particularly an information based one, is to figure out what you’re good at. Where can you be most helpful and who should you be helping? That’s the most important question you should ask yourself. The best place to start is with what you know.
Let’s say you’re just getting started with your online business, or you’re considering expanding into a new niche. How do you find out what you should do and who you should serve?
You start with a little brain storming session. Get out a piece of paper or open a document on your computer and start jotting things down. Remember this is a brainstorming exercise, so don’t judge or censor yourself.
No idea is too crazy. Include everything you know something about from things based on your education, your job history, personal experience, and even hobbies and interests. You never know what will spark an interesting idea worth pursuing.
With that list in hand, it’s time to cut it down to ideas that have the biggest profit potential for you. There are two criteria I like to look at. The first is if I am interested in the topic. It doesn’t have to be the biggest passion, but building a new business will be a lot more fun if I’m enjoying the work.
There will be plenty of content to create and products to research. You’ll spend a lot of time reading and thinking about the niche. It makes sense to pick something you don’t completely despise. Cut out anything you have no interest in at all.
Next, it’s time to make sure you pick something with profit potential. Go through the remainder of your list line by line and ask yourself if people spend money on this. Do they buy products, do they buy information, are there advertisers in this niche? If there aren’t, cross it off the list.
By now your list should be significantly shorter. If it’s still too long, go through it again, cutting out anything that you’re not excited about or that doesn’t show pretty good profit potential.
Once you have it down to a handful of possible niches it’s time to pick the one with the highest profit potential. Think about what you know the most about. Where can you be most helpful and make the biggest impact? That’s a great place to start.
Sit down and see if you can brainstorm a list of 10 interesting article or video topics and ideas for a few products to create or promote. If you can, you’ve found your winner. If not, go back to another idea from your shortlist.
This simple process will help you quickly come up with a niche idea based on what you already know that has a good potential to work. While there are no guarantees, it doesn’t hurt to put the odds in your favor.