There are many different factors that contribute to making a business successful, and one of the most relevant of all factors is picking the right niche to begin with.
Sometimes, we naturally gravitate towards particular niches and areas of business because we find them automatically alluring, as a result of our own inherent interests and predispositions. At other times, we target particular niches because we have a sense that they might be more lucrative than others.
If you are setting up your own business, here are just a few reasons why you should really give a lot of thought to niche selection.
Certain Niches Are Much Riskier, and More Regulated Than Others
Certain professional niches are relatively “safe” and “easy-going.” Others, are far more subject to regulation, and are more heavily scrutinised in general.
Cannabis Consulting Nationwide exists specifically to give advice on legal cannabis sales – because this (largely new) industry is in many ways highly tenuous, and subject to all kinds of oversight.
If you want to run a business without dealing with reams of paperwork, selecting a less controversial niche may be the way to go. But it’s worth keeping in mind that where there’s risk, there is also great potential reward.
Keeping this in mind can help you to navigate your chosen career in the most fruitful possible way.
Working in a Niche That You Care About, You’ll Be More Resilient
There’s a well-worn idea that in order to make it in business, you need to put “passion” aside, and focus entirely on developing practical skills in a lucrative domain, regardless of how you initially feel about that domain. “Passion” will then naturally follow, as the thinking goes.
Cal Newport is an advocate for this idea, and there is certainly some truth to it. We are generally more passionate about our work when we are doing well at it, and less passionate when it doesn’t seem to be much fun.
David Epstein, writing in his book “Range: How Generalists Triumph in a Specialized World,” makes an interesting point, however.
He suggests that what we often think of as “grit” is really just the result of genuinely caring about what we do. By working in a niche that actually motivates you from the outset, you’re likely to be far more resilient, and to make positive things happen for yourself.
Some Niches Are Just Ripe for the Picking
If you’ve ever done keyword research to try and figure out the best search terms to optimise for on your website, you’ll have noticed that certain niche-specific terms get an incredible number of monthly hits on Google and other major search engines, while certain other terms get just about no attention at all.
Some niches are just ripe for the picking, and sit in that sweet spot between over-exposure, and barrenness. But some niches, no matter how interesting you find them, just don’t garner enough interest from the public to be profitable.
Choosing the right niche can therefore make all the difference in terms of the size and type of audience you have available.