One of the first things to do when starting an online business is choosing a niche to focus on. A niche is and area of interest to focus your busines on. There are different kinds of niches, some are very specific, and some are very general. There are different methods for choosing a niche. One is focusing on an umbrella niche (For example sports), and another is focusing on a micro niche (baseball cards collections). Focusing on a general, umbrella category tends to be easier than finding a micro niche because it takes less time to research. But choosing general, umbrella niche method only works in some cases. In most cases, for beginners, it is best to focus on a micro niche (a very specific topic).
Choosing any kind of niche involves some research, but you can find quick ways to do research by using automated tool, such as, Google keywords search. When researching a niche, you want to find a category that already has a market, but at the same time, that does not have a lot of competition. Usually, the more popular a niche is with buyers, the more popular will be with sellers as well. What this means is, if you find the perfect niche, which lots of people buying every day, then you’ll also find that lots of sellers are already in that niched. So, the key is to find a middle ground, a decent number of buyers, and only some competition.
Let me give you an example. Let’s say you picked Luxury cars as your niche. You decide to sell products to people who like luxury cars. You probably picked this niche, because you figured that people who like luxury cars have a lot of money to buy your product. This is probably true, and the same way you came up with that idea, hundreds or thousands of other marketers will come up with the same idea for the same reason you did.
When you pick a popular niche, you have a larger audience of customers available to you, but you also have a lot of competition. This means that to get your product in front of your customers, you might have to spend a lot of time and money advertising your product, so it doesn’t get lost in the endless stream of similar products.
In some cases, it works to pick a general, umbrella niche and then pick sub-niches to focus on. Let’s say that you are firm in your decision to pick luxury cars as your niche. What you could do is subdivide that niche into categories. You could have a subcategory, or micro niche where you focus on having a club for like-minded luxury car owners. Then you could have another micro niche where you sell accessories to make the car even more luxurious. You can have another micro niche related to having insurance for those luxury cars. etc. You can do this with many umbrella niches. Think about whether your niche can be broken down into related parts, then set up different businesses for each of those parts or micro niches but focusing on one at the time.
Whichever niche you decide to choose; umbrella niche, or micro niche, do some research at first to see what products you can sell and what is the demand for those products. While it is easier to focus on a broad niche, whenever possible, try to spend the time researching the micro niches because the smaller the niche is, the more likely you can become an expert at the topic you choose. As you master a micro niche within your broad niche, you can move on to master other micro niches withing the same umbrella niche.
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