Finding a Niche for Profits

Many years ago, I watched a show called the "Ray Bradbury Theater". Every episode began with a narration of Ray saying, "People ask, where do you get your ideas?". It seems this is a question that is on everybody's mind, whether they are creating a story, or creating a business. Just where do you start when creating an internet business?

Businesses always get started with one thing in common... an idea! Easier said than done though, right? Maybe, or maybe not. You see, a common misconception is that many believe they have to create this great internet store full of all kinds of products in order to meet the majority of peoples needs. The more you offer, the more people it will appeal to, right?

Not exactly. Several years ago, I built an online gift store that included all kinds of merchandise; anything from home interior, garden décor, to unique gifts. I really felt this kind of a store would appeal to people, and the truth is, it did. What was the problem then? I was competing with over 3 million other gift store websites! I didn't have a chance. Unless you have deep pockets, you should stay away from generalized ideas such as this.

So, where should your focus be? Find a niche market! The dictionary defines a niche as: "a special area of demand for a product or service". A 'gift store' is too vague to be considered a niche. A 'gift basket store' is a little more focused on an area, but how about 'gift baskets for pets'? Now that would be considered a niche. Not necessarily a good niche, but you get the point.

Think of a niche as, "an opportunity for an average, everyday person to be successful". Most of us have no chance of survival when we are trying to compete with the "big dogs". But fortunately, we can still pick up what they leave behind, and... They leave behind plenty! According to the Computer Industry Almanac, Inc., in 2005, the population of Internet users surpassed 1 billion. With most large corporations focusing their products and services on the mass marketing scale (which in all likeliness, we can't even compete with), we are left with marketing to the niches.