Your success in business on the internet it is absolutely crucial and is totally reliant on your ability to find a niche market.
Let's explore not only how to find your niche but also how to find a niche where you have a very high probability of success.
The internet is so big and so diverse that there is no sense in even trying to make an internet business based on general topics.
There are just so many large or well established highly competitive companies with mega budgets competing in those areas.
What you need to look for, is to find a niche where the competition is low and the demand is high.
Finding your niche is at least a two step process.
The first step is to find categories of products, services or information that you have particular skills, interest or knowledge in that area.
The second step is to explore this area and decide if it is too general and saturated with competition or whether it is a possibility to exploit.
You should try and find a sub area within this category where you can be competitive.
The first part of your research is to find the best theme for your new niche area.
Try listing on a piece of paper the things you enjoy doing, places you have been or want to go, things you are good at, any special skills or any topics you would like to know more about.
Some times even items you have recently purchased, have researched purchasing or would soon like to purchase can provide a great insight into possible niche markets.
When you have come up with a list it is time to rank the list in order of preference.
Your preference should be guided by things you are interested in, the level of demand and the level of competition.
After coming up with a ranked list it is time to shortlist.
Your shortlist is based on picking the 3 to 5 most desirable from your ranking.
Before proceeding any further you must work out exactly how you can monetize this niche.
Looking at competitors within the niche or competitors in very closely related niches often provides a great insight into how best to monetize.