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Find a Business Niche and Measure Market Demand

Choose a business niche for your hustle and kickstart your path to entrepreneurship.
In 32 steps, you will:
Get 5 profitable ideas
Brainstorm business niches
Measure the demand of any business niche
Validate the ideas with the right tools
Formulate business ideas
Find helpful trends & insights
steps inside
32
ESTIMATED TIME
8h

What you will do

This guide consists of step-by-step instructions that will help you come up with the ideas to start your business. Learn how to brainstorm ideas, measure the demand, find insights, and finally execute your New Year's resolutions.

About author

Vladimir started his career as a designer and developer working in small firms and companies. Nevertheless, he quickly achieved success as a renowned designer. After years of working full-time jobs, he decided to build a company and has successfully started to sell several digital products. Over the past few years, he has tested many business ideas and found ones that have brought him a stable passive income.
“We always think we need talent, experience, and influential friends to start a successful business. I’m a living testimony of the exact opposite - a person who doesn't have any of these things can easily create his own business and have a stable cash flow.”
Vladimir Kudinov
Co-founder at FocFoc, Entrepreneur, Designer

Perfect Fit for

Anyone who wants to start a business
Side hustlers
First-time entrepreneurs

Read Full guide (4)

32 steps
Brainstorm business niches
11 steps
In this section, we will walk through how to brainstorm 10 niche business ideas. Understanding how to do this step will help you be successful in the following sections. Let’s get started!
DO THESE STEPS
Let’s find 10 different niche business ideas. Click on this section to expand the description and find out why you need to consider so many ideas.

Say you make a product that is sold for $49. You build your product, website, and email campaigns; run ads in Google AdWords; and hire a small team. After two months of working on your project, you’ve earned $1,000.

But putting in the same amount of effort in the same time frame in a different niche could bring dramatically different results. You could make $10,000 or $100,000 a month just by shifting your focus to a different niche industry.

Why? The demand varies among niches. One niche might only generate 200 prospects each week, while another might yield 1,000 sales each day.

This is why it is essential to test various ideas. Let’s find 10 niche business ideas and test the demand and profitability of each to find the best ideas.

Grab a piece of paper and draw four columns on it.
Label one column “Past” and write down the things you used to be passionate about. Ex: gaming, marketing, music.

Do not rush. Try to remember all the things you have been passionate about. Maybe you were good at fashion and you know everything about new trends and how to combine different clothing items. Maybe you used to create gorgeous websites, and your boss was shocked by your talent. Write them all down.

The more data you collect, the more ideas you will be able to generate using your past passions.

Label another column “Paid to do” and write down the things that you have been paid to do professionally. Ex: website building, marketing services, video editing.

List everything you have been paid for, whether by friends, employers, colleagues, or freelance clients. Maybe you used to sell the icons for user interface design on Creative Market. Maybe you wrote email copy for a brand campaign. Include those types of tasks in this column.

Label another column "Present" and write down the things you are passionate about right now. Examples: app development, hiking, songwriting.
Label another column "Future" and write down the interests you would like to explore in the future. Examples: esports, music, personal growth.
Mix and match items from your columns and put together 10 different niche business ideas that you like. Write them down. Ex: web service for esports teams, music app, personal growth videos.

At first, it will be hard to generate ideas, but stick with it and spend at least one hour doing this exercise.

Do not focus on ideas that going to change the world. While there is a small chance that you will think of a brand new life-changing idea, it is better to work with the niches that already popular and have proven success rates. You do not need to build another Facebook to earn your millions. Just find the profitable niches, build a product or service inside that niche, run stable traffic, and start selling.

The more ideas, the better! We will test the ideas on demand in the next steps.

Get new ideas from websites that explore trends and innovations.
WEBSITES
  • Trend Hunter — the world's largest, most popular trend community.
  • Springwise — digital source of current innovations and groundbreaking ideas.
Discover products that are bestsellers on the market and brainstorm new ideas based on them.
Get more ideas with Product Hunt.
Visit Product Hunt and discover new projects that have been launched within the past few months.
Validate the ideas with Keywords Planner
9 steps
Before you spend your resources and time developing any of your ideas, determine the current demand for it. In this section, we will walk through how to figure out which of your ideas are profitable.
DO THESE STEPS
Sign up for Google AdWords.
Click on the wrench icon on the top right and then "Keyword Planner".
Click "Search for new keywords using a phrase, website, or category."
Choose the country where you would sell your product or service by clicking "All locations" in the "Targeting" section.

To find out the right demand for your product, it is important to choose the country where you would sell it. If you plan to sell in the United States, then click on "All Locations" and choose "United States."

If you would sell your product worldwide, then leave the section with the location as it is — "All Locations."

Take your first niche business idea, enter it, and click "Get Ideas". Ex: personal growth videos, landing page design, music app.
Totalize the amount of average monthly searches for the keywords that represent your niche business.
Cross out the idea if it has less than 10,000 monthly searches — it does not have enough traffic or interest in the niche to be a profitable business venture for you.

More traffic means that more people are searching the internet to find the products in your niche.

Higher traffic also means you can make an ad campaign and offer your product to these prospects. It is the easiest and most scalable way to get traffic to your website.

If there is not much demand inside your niche, then you run the risk that you will build a product that nobody cares about.

Consider a list of the similar keywords suggested by Keyword Planner and look for opportunities to expand your list with the new ideas.
Test all 10 of your ideas with Keyword Planner and shorten your list, leaving only the ideas that have enough demand and traffic.
Find the insights with Google Trends
5 steps
Google Trends is a numeric representation of the relative volume of searches made on Google. You can see the indexes that show how trends change over time. In this section, you will find useful insights and determine which of your chosen niche ideas have the potential to gain popularity over time.
DO THESE STEPS
Open Google Trends and type in your first niche idea into the search input.
Test your niche on different time frames and find out whether it gains more interest over time.

The better dynamics over time for this parameter, the better your chances are to find a niche that will bring you more prospects.

It’s similar to the effect of opening your shop in a popular neighborhood — more visitors equals more sales.

Test your niche on demand in different regions.

Google Trends allows you to measure interest in your search in a particular topic on a world, country, state, or even city level.

Check the list of related queries with valuable insights.
Test all your ideas in Google Trends and exclude the ideas that have negative potential.
Formulate 5 business ideas
7 steps
There are many parameters that determine which of your ideas can be profitable. By answering questions in this section, you will find out which of your ideas have the highest potential.
DO THESE STEPS
Use the information you determined from the previous steps to shorten your list to the five niches ideas that have the highest potential.

1. Remove all the niches that have less than 10,000 monthly searches in Keyword Planner.

2. Remove the niches with bad popularity dynamics in Google Trends.

3. Reject the ideas you do not like anymore.

4. Shorten your list to the five ideas that have the highest potential to generate results.

For each of your five niches, brainstorm a business idea. Ex: a course for designers who want to quit their job and earn money as a freelancer.

Write out your ideas using this formula: [Product] for [target audience] to solve [problem] with [secret sauce].

Example: "KarateKid is developing martial arts lessons for kids to make them strong without injuring themselves."

You need to be specific when describing your niche business idea. If you build a product for everyone, there is a big chance that it will be too general and no one will need it.

All of your business ideas should bring you at least eight times the margin.
All of your niche ideas need to have a good ratio between the average ticket and the closing time of the transaction between you and a client.

Consider your end goal and what it will take to reach it. If you want to earn $20,000 each month and your product sells for $100, you need to sell 200 products each month. But if you sell your product for $1,000, then you only need to sell 20 products.

In some niches, you can spend a week to close a deal for $100, and in the others, you might spend the same amount of time to earn $1,000. Choose the ideas with the right ratio between money and time.

All of your ideas should be stable enough to run well without you constantly working. A business that will fall apart when you go on vacation is a bad business.
After all these steps, you should have five business ideas to test.

So what do you do next? Test every idea by building a landing page that describes your product and services. Buy traffic on AdWords and Facebook to reach your target audience and find out which of your ideas is the most profitable.

We have a new checklist that can help you build a landing page for your idea and run an ad campaign to generate traffic and validate your ideas.