How to Find the (PERFECT) Niche for Your Business

Key Takeaways

hi everyone it's neil patel here and we're here for another q and a thursday video i'm here with adam lodolce from viewership hello everybody and this week's question is this one's from jay brooks and it looks like he was in the military so thank you for your service if you would appreciate it jay brooks um and he says i'm currently an er nurse with a bs in business and computer science and he once started a technology based company with 500 bucks grew to over in a few years to over 400k a year now i'm going to jump a little ahead because it's a long comment basically i want to create a business i can do the internet and still have interest in helping others in business but he's having a difficult time picking a niche niche i'd like to do one that isn't too crowded like internet marketing seo but something like that please help so in other words he's trying to find a niche that's not too crowded yeah exactly and if you're trying to find a niche that's not too crowded that's a wrong way of thinking about it and here's why if i tell you a niche today that's not to credit that you can do well you're not passionate about it you're not going to do as well in that niche versus something that you truly love right for example you're in the military whether it's the army whether it's the navy whether it's based on its picture based on your picture we're assuming because you're dressed up in a military outfit and again we appreciate the service if you find something that you're super passionate about you're going to put in more time more energy and you're going to do whatever it takes to succeed so don't think about a niche or a business as in what can i do to make money most people don't make money because they want to make money most people make money because they're solving a problem so instead what i would recommend to you is figure out what you're passionate about what problems are you facing in that sector you're passionate about and other people facing and go and solve those problems if you do that and you create a business around it eventually you'll do well it doesn't matter if it's a niche it's funny everyone thinks oh you want to do a niche is the quickest way to make money no the easiest way to make money is pick a big total addressable market because if your market is like a hundred billion dollar market it's really easy to make 50 grand out of a 100 billion dollar market it's much harder to make 50 grand out of a market that's only one million dollars no matter how small that niche is right or how you know even if it's not crowded and if you're not sure what you're passionate about what i would recommend to you is to go and try unique new things every single day that you think that you like eventually you'll learn what you like what you don't like and what you're good at and what you'll find is what you like and what you're good at usually go hand in hand because when you like something you're probably usually naturally good at it or what you like something you're probably better at it or you'll end up finding out like oh i like this but i can't see myself doing this for a whole week or a month and if you like something enough like all right let me try it out for a whole week all right i still like it i can see myself doing it for the rest of my life try it out for another month then see what happens eventually you'll figure out something you're passionate about and then go find problems that you can solve within that space don't pick a niche based on income pick a niche based off of passion and make sure it has a really large total addressable market size if you're not sure how to find that out do two things one go to google trends type in keywords within your industry and space you'll see how big it is make sure it's much larger than digital marketing in comparison when you're using google trends you can compare both of them together in addition to that look for publicly traded companies within your space if you can find companies that have multi-hundred millions of billions of market cap from whatever industry that you're looking to get into that'll tell you that it's a big niche assume that their market cap is made up from the revenue you know line item that from the industry that you're thinking about getting in because companies like google have multiple things from chromebooks to phones to ads right so you have to figure out what revenue stream is you know from the industry that you're interested in and then from there you can go and carve out you know a quote-unquote niche within that space and solve a problem but look for a bigger market don't look for a small one yeah i agree with that and just always be thinking you know what am i uniquely what problem am i uniquely qualified to solve right you're in the military your er nurse uh you also happen to have a business degree that is a perfect storm of something in clearly the medical area maybe there's a medical device or something like that that's how i got into viewership is because i had a big youtube channel and then i was like you know i'm going to try other stuff so i thought what problem i uniquely qualified to solve right helping other people do the same so always be thinking about that because you don't want to just be a generalist right you want to go for big markets but also have you know a unique way of solving that problem so for you that might be your your way of moving forward who knows yep so that's it thank you for watching this week's q a thursday video if you want your question answered on next week's video leave a comment below either way i'll respond and i'll give you an answer but it may show up on next week's video in addition to that please subscribe like share thank you for watching