3 Tips for Finding A Business Niche

February 2, 2021

This post was originally published on August 10th, 2017. Updated for February 2nd, 2021.

Do you run a small business or are you ready to jump into one? As you may already know, finding a business niche can make a huge difference on your path to becoming a successful entrepreneur. Developing a niche helps focus your business goals and marketing efforts on a target audience. This allows for much more efficient, intentional marketing, and can really take your business up a notch. (For more info on why you should develop a business niche, check out this post.)

If you’re just starting out, you may be wondering where to even begin with finding a business niche. Here are a few tips to help you figure it out.

3 Tips for Finding A Business Niche

#1. Identify what you’re passionate about

It’s no use choosing a business niche if you hate it and never want to come into the office.

Start by making a list of your passions and interests. What are your hobbies? What blogs do you follow, and whose Instagram feeds do you stalk? Think about what areas you’re interested in, and what topics you would love to focus on. Then brainstorm how you could incorporate this into your business venture. If you’re passionate about what you do, the rest will come much more easily.

#2. Do your research

Next, it’s time to put on your research goggles and dig in.

The first area of research is about your target market. Who is your target audience and what are they looking for? What do they value or prioritize? You can do your research online, conduct interviews, or hire a marketing research firm if needed. You may end up needing to tweak your business strategy after getting to know your ideal client, and figuring out what they’re really looking for.

The second area of research is getting to know the competition. Who are the competitors for your business niche? What are they doing well, and what are they totally failing at? An easy way to start is just to do a Google search for your competitors. Who comes up at the top of the list? How can you distinguish yourself from these competitors? What can you do differently, and better?

#3. Don’t try to make everyone happy

When you’re working on finding a business niche, it may be tempting to expand your target market to try to make everyone happy—but don’t give in.

Although it might feel like you’re limiting yourself by focusing on a specific market, it’s usually the opposite. By focusing on a specific area of business, you can really dig in and become an expert in your niche. Instead of trying to appeal to everyone, you can focus on marketing to the right people, and really maximize your ROI.


Finding your niche can be totally liberating and really help focus your business. And once you find your niche, you can market even better.

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Former Creative Director

Hana focuses on website design, graphic design and email marketing for Technology Aloha and our clients.

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