How to Identify Profitable Niche Areas

Whether you are wanting a home-based business or looking to operate a brick and mortar, you have to know your customers and the only way to do that is to find your niche market.

Focusing on a niche area is one of the key factors to personal business success in  today's world because gone are the days of offering everything to everyone. That market is run by the big chain stores and they can eat you alive. A detailed niche narrows down the target market, making success more achievable compared to having to cover the whole spectrum of a particular market. How to identify profitable niche areas for your home business?

1. Start with yourself

Ask yourself, what fires you up? What is your passion? What do you do during your free time? Which subject do you have vast knowledge about? The answer(s) to these questions are most likely your niche areas that you can work on.

2. Use keyword search

Now you need to identify what your competitors are doing within your areas of expertise. Search the keywords on a search engine and see the list of searches that appears. Look for areas where there is no or little competitions.

3. Gauge the demand

The volume of searches on search engines is an indication of the interest or demand to the particular market you are targeting. Use Google AdWords' Key word tool or other such keyword tool to gauge the demand for the particular niche markets that you have shortlisted. The higher the search volume, the better.

4. Stand out

At this point you have identified a niche market that is something you are passionate about, have little or no competitions yet captures high level of interests among your online viewers that you want to reach – ideal for your home business! The next step is to define your new playing field, i.e. determine what you can offer differently from all the rest in the same market.

5. Package your idea

Name your niche market and though you want to use the keyword for your niche to help drive interest, you want to make sure that your name isn't too generic to avoid Google's algorithms from blacklisting you.  What I mean by this is, lets say your target market is Guppy breeeding, Don't just have your business called Guppy Breeding. You want it to stand out. Package your niche market and your offers under this new ‘brand’ that you have created.

Now, you are ready to develop your new products and market them for your home business!

I will get more indepth about niche marketing in later blog posts, but for now, here is to your success