The Easiest Way to Find Your Business Niche is by Starting with Self-Discovery.
True entrepreneurship is essentially a growth process. You start by discovering and developing your interests. Then, as opportunities present themselves, you discover the potential of turning your interest into a viable business. As with any other business, challenges (even more than success) fuel your growth.
The most important part of this growth process is determining which business niche bests suits you. You need to find a niche that perfectly combines your passion with business viability. One cannot do without the other. Below is a 3-step process that applies to any aspiring entrepreneur looking for the right business niche.
1. Discover and Develop your Passion
The most successful entrepreneurs in the world – from Bill Gates to Mark Zuckerberg – are extremely passionate about their businesses. This is extravagant passion and relentless dedication to seeing their businesses through every challenge and building them into the billion-dollar ventures we see today.
Look through this list of the 10 richest entrepreneurs and you will see that radical passion is one of the things they have in common.
If you want to be a successful entrepreneur, passion is an indispensable quality. Forbes explains that it is not about the next big idea or the next industry disruption; rather it is about a passion deep inside you. This is the main driver behind your business.
So, what is your passion? This is the first question an aspiring entrepreneur should ask. Some are passionate about food, others about technology, others about community and others about design. What are you passionate about?
You do not have to be good at something for it to be a passion; you just have to really love it. The next step, before even thinking about turning it into a business, is developing that passion. Be the best at it. Read books and take lessons. Practice and practice some more until you are an expert. This is the development part of the first step. When you are an expert at what you love, it is much easier to turn it into a business.
So now that you know what you love and you have become really good at it, what is remaining is snatching the right business opportunity and growing your business. This is covered in the next two steps of the entrepreneurship growth process.
2. Look for the Right Opportunity
This is where, unfortunately, most entrepreneurs start their search for a business niche. Without any consideration of their strengths and passions, they try to fulfill any market need they identify. This is why a majority of businesses fail; they are not built on passion.
Finding the perfect business opportunity is almost impossible. Finding a good business opportunity is easier but still a big challenge. First, you need to know what aspects make up a good business opportunity.
• An unmet product or service need in the market. What product or service would do well in a specific market but is not being provided (or is under-supplied)? Such an opportunity would give you the opening you need to get your foot into the market.
• There is an adequate market for the product. You might have a brilliant product, but if there are not enough customers to buy it, you are not going anywhere. Do the necessary research and determine if the market is big enough to turn you a profit. If not, you can find another location with a bigger market or attempt to spur interest in your product (as is the case with some technology products).
• The competition can be overcome. Unless you have an extremely good business idea and a lot of money, it is virtually impossible to create a new search engine that is more popular than Google. Be realistic about existing competition. Is it too big that it requires an extraordinary amount of risk and resources to succeed? Or is it present but weak enough to overcome?
• You can create a viable product. A good business is not just about having the right market at your hands. It is also about creating a product that they are willing to buy. This includes having the right pricing and providing actual value to customers. Here is a helpful 16-point guide on testing product viability.
• You have the resources. Unfortunately, it is really hard to start most businesses without capital. So you need to figure out where to source funding for your business. You can be the sole funder or you can rely on friends or financial institutions.
3. Build and Test
Simply because you have started a business does not mean that you have finally found the one. You might do it for a month only to discover that you do not love it or that it is not viable. You therefore need to work on building your business and going through its challenges, small wins and milestone victories to be sure that it is the right business niche for you.
The most important part of building your business from this point going on is testing. Test whether your product or service is gaining acceptance in the market, test market perceptions about your business, test the competitions’ strengths, test your business growth and so on.
These calculated tests, and the results, will tell you whether you are in the right niche. You can either try a different approach (slightly change your product, tweak the pricing, try a new marketing strategy, etc) or abandon the business. For more on business growth and testing, an excellent resource is the book title, Lean Startup.
Following your Entrepreneurial Path
The success of famous entrepreneurs is usually the result of their passions budding into viable market opportunities. Entrepreneurship is not a job or just another way to make some money. True entrepreneurship is a lifestyle born from your passion. It can be extremely rewarding but at the same time, very demanding.
Finding your niche is a path of self-discovery, continuous development and growth. The above 3-step guide is a great place to start. It should place you on a path to finding your passions, fine tuning them and turning them into a successful business venture.
Stop complicating, you only need 4 things to Find Your Greatness!
- Idea – get clear on what you want to do.
- Focus – be laser focused on what you want to achieve.
- Commitment – you must commit and actually start.
- Make It Happen! – Follow through regardless of obstacles.
Follow your passion and do what works for you.
- Make a list of things that make you happy.
- Make a list of routine daily activities (the things you do each day).
- Compare your lists.
Not happy? Make changes or adjustments to your list. Why?, your happiness depends on it! Keep it simple.
Resource: Not sure where to start? Startup Savant offers a virtual classroom. You can learn the essential business skills that would normally take thousands of hours sifting through business books.
Invitation: Be my guest on the eWorkSuccess podcast show! We have received great feedback from listeners about the eWS grassroot episodes. Share your story and inspire startups, solopreneurs and entrepreneurs around the world.
Escape the 9 to 5 Job Grind! You will love my resource guide for startups and solopreneurs. Get your Amazon ebook or audio book, Don’t Miss This!