Elements of Niche Research

I am using the term “Niche Research” to cover at least 4 different areas that critical to choosing a profitable and enjoyable business niche:

1) Market Research – Market research includes the process of collecting and analyzing information about a specific types of products and services, and also the customers who buy or using them. It includes looking at the needs of the customer, the various profiles or types of customers, what products and services are being purchased, how are they being marketed currently, what are the related costs, what are the trends, what new technology or products are likely to be coming out soon, and much more.

2) Keyword Research – this is a form of market research, and it involves the use of various tools to try and figure out which keywords people are using to look in the search engine for products or information related to a specific market or product. Along those lines, you will also want to see which keywords others are advertising and optimizing their websites for, which leads to the next form of research.

3) Competitive Research – I need a better term here, but the goal is to understand who is already in or near the niche you are looking at. The reason I don’t like the term ‘competitive research’ or ‘competitive intelligence’ is because many of the products and companies you find while doing this research will likely become your partners: you may end up selling their products, they may end up selling your products, you could bundle your products or services tioogether, you may interview them for your blog or podcast, etc. If there is a dominate product or company in your target market, you will likely end up positioning yourself relative to them – our product is cheaper, better, more stylish, has more features, etc.

4) Personal Inventory – This should probably be listed first, but this involves looking at your skills, knowledge, experiences, interests, needs, desires, resources, and relationship to help in choosing the best niche for you.