In everyday life, by saying “niche” we mean a position where one can function comfortably, especially under specific conditions. You may find your niche by offering a particular set of skills that others don’t.

In a business niche, certain products and services are in demand. Specialization gives consumers, potential investors, and business partners clarity on your business and its function. Finding your niche lets you narrow down your offering, differentiate yourself from your competitors and build your brand to be the best at what you do. Let’s find out how you can find your niche in just five steps.



1. Identify Your Target Audience

A target audience consists of the people most likely to be interested in your service or product. Here are the key factors to consider in target audience analysis:

• Age 
• Gender 
• Location 
• Language 
• Career 
• Socioeconomic status 
• Lifestyle
• Interests and activities
• Stage of life
• Motivation and priorities

Whether you’re setting up a business or looking to do more with your current business, you need to take concrete steps to better understand your target audience to find your niche. 

If you have social media channels set up for your business or a website that gets good traffic, you can use your analytics data to tell you who’s engaging with your current content.

2. Identify Problems You Could Solve

Identify problems within your potential niche, and decide if you can solve those problems for your target audience. The baseline for any profitable business is to combine passion with practicality and offer solutions for your customers.

To understand your audience’s pain points, you can browse online communities and make notes of any common issues that you think you can solve. You can also look at your competitors to assess which problems they’re solving, or you can just talk to people from your target audience.


For example, if you find very expensive products or services, which is a problem for customers with tighter budgets, you should offer a similar service for less money.

3. Research Your Competition

Competitive research is also known as competitive analysis. This is the process of finding competitors in your industry and looking at exactly what they’re doing.

Write a list of the top competitors in your industry and try to get a really broad sense of what other brands your clients might be using to help them in this area. Then write down the top strengths of each of your competitors.

Try to get an idea of what gaps exist in the market and where you could find a niche. Compare their audience to your target audience by making educated guesses based on their marketing.



4. Determine the Profitability of Your Niche

Whether you’re selling products, services, or memberships, you’ll want to get an idea of the rough range of prices for what you’ve got. Evaluating your competitors’ price points will help you set your pricing model. If you are going to sell products, head over to Amazon.

You can browse the top products in your category. If you can't find any offers, that's not a good sign. It might mean that nobody has been able to monetize the niche. But if your search turns up a decent number of products - but not an overabundance of products - you're in luck.



5. Test Your Idea

You’re ready! Test out your idea online by setting up an online store or website accepting pre-orders of your product or service. This will give you insight into how much interest your idea generates.

Of course, your niche might not work this way – it could be that something on your website is putting people off. Try A/B testing on your site, to see if changing design elements – or even your written content – could have an impact and boost engagement.