So you are looking to start your own business online and have come up with an idea about which niche to work in or maybe you have a few options and you want to know if there is a good or even great chance that it will generate a good income for you and your loved ones. In this article I will go through some ways that you can use to evaluate the potential profitability of your niche.
Please understand that there is no way to be absolutely certain and if you are not open to taking some calculated risks then you are unlikely to be successful in business. There are many factors that are involved in building a successful business and choosing the right niche is just one of them. Another key factor is you, your commitment and dedication, your attitude, your skills and experience. Also it is important to remember that all long-term success is built upon a number of so-called failures along the way. With this caution in mind I'll go on now to talk about how you can increase your odds, so to speak, of making a successful business out of your chosen niche.
There are three key criteria for judging the profitability of your niche. First, does your niche address a challenge that a large enough group of people have and want to overcome. Now you're thinking how large is enough, yes? It really depends on the price level of your products or services. If you are going to aim for an exclusive group and charge high prices i.e. thousands then you don't need such a large group. Whereas if your product or programme is much cheaper, then you will need a much larger pool of potential customers. So I can't give you any hard and fast figures.
The second criterion is that your target market must be willing to pay and invest in solving their challenge. The more painful and annoying the challenge the more likely people are going to be to pay for a solution. So what are the consequences for your potential customers if they don't resolve their issues and are they sufficiently painful to motivate them to buy your products and programmes.
The third criterion is that you must be able to get your marketing message in front of your chosen audience easily and cheaply. So how many places online can you think of where your potential customers can be found and what are the costs, if any other than your time, involved in presenting your products and programmes to them?
By the way do you want to learn more about finding your ideal niche?