Starting an online business is attractive for various reasons, namely…
- Low startup cost – compared to a brick and mortar equivalent
- Global reach
- You can work on it from anywhere that has an Internet connection
- It can be running 24/7 without much intervention from you
- Easier to scale as your business grows
We mentioned this in a previous post.
And it is also precisely these reasons why you are going to get a lot of competition!
So finding a profitable niche is important for 6 reasons…
Each niche has certain features…
- Size of Demand (ideally the higher the better)
- Sustainability of Demand (is it just a fad? how long will it last?)
- Commercial Value (level of profitability)
- Level Social Media Engagement
- How passionate are you about your niche?
- Appropriate Conversion Methods (e.g. Blogging may not be appropriate for some niches)
Next post…a tool to help identify more profitable niches!