What is a business idea and a niche?

A business idea is the core concept around which your business is built. It answers the question: what are you going to do?

• The idea is general and yet to be tailored to a specific audience or market segment.

Example:

• “Create an online clothing store.”
• “Offer food delivery.”

A niche is the specific place of your business idea in the market. It defines who you will sell your product or service to, why, and how.

• It refines the idea by focusing on solving problems or meeting the needs of a particular audience segment.
• It forms the competitive advantage and positioning.

Example:

• Instead of just “an online clothing store,” it could be “a sportswear store for women over 40 who are passionate about fitness.”
• Instead of “food delivery,” it could be “healthy lunch delivery for busy professionals who care about nutrition.”

The difference lies in the level of detail and market orientation:

• A business idea is the initial, general stage that doesn’t account for audience and market specifics.

Example: “Sell natural cosmetics.”

• A niche is the result of market analysis and customer needs, specifying how the business idea will operate in practice.

Example: “Manufacture natural cosmetics for teenagers with problem skin.”

In other words, a niche is the realization of a business idea, tailored to the needs of a specific market segment.

Why is it important to understand the difference?

• A business idea is inspiring, but without a niche, it remains vague.
• A niche shapes the idea into a relevant offering.
  

An example of a failed approach: opening a café in a popular location without a unique concept. High competition makes the business unprofitable.
An example of a successful approach: choosing a niche, a café with a vegan menu in an area with high demand and no similar establishments.

How to find and validate your niche?

The success of any business begins with finding the right niche. But what is a niche? A niche is a narrow market segment where your business can solve specific problems for a particular audience by offering a unique and valuable solution.

Why choose a niche?

• You reduce competition. By focusing on a narrow segment, you can become an expert in that area.
• You save resources. You don’t need to try to reach everyone; marketing and sales will be targeted.
• You increase customer loyalty. People are more likely to trust specialists who speak their language and understand their needs.

Steps to find and test a niche

Step 1: Assess your skills and interests

Start by answering three key questions:

• What are you competent in? Your experience and skills will form the basis for choosing your niche.
• Where do you have the most connections? Contacts can speed up your launch.
• What are you passionate about? Enthusiasm makes development easier.

Example: A fitness trainer’s qualifications and passion for fitness can turn into an online course for home workouts for young mothers.

Step 2: Study the market

Before launching, make sure there is demand for your idea. To do this:

• Analyze demand:

• Use Google Trends and Yandex Wordstat to see how often people search for similar products or services.
• Study discussions on forums, social media, and reviews.
  

• Analyze competitors:

• See who is already working in this niche.
• Identify their strengths and weaknesses: what can be improved?
• Use tools like SEMrush or Ahrefs to analyze their traffic and promotion strategies.

• Study trends:

• What areas are currently growing? For example, there is sustained interest in eco-friendly products.

Example: The saturated market of children’s toys can be adapted to a niche of developmental toys made from safe and eco-friendly materials for children under 5.

Step 3: Define your audience

The better you understand your customers, the more likely you are to offer exactly what they need.

Create a customer profile:

• Age, income, profession.
• Problems they want to solve.
• Where do they seek solutions? How can you earn their trust?

Example: Your customer is an office worker who needs a quick, healthy lunch. Perhaps you should offer a lunch box delivery service with natural ingredients.

Step 4: Test your idea

Before investing a significant amount of money, make sure your chosen niche works.

• Create an MVP — a simplified version of your product or service.

Example: Before launching an online store, start by selling through marketplaces or social media.

• Launch test ads:

• Set up targeted ads with a minimal budget.
• Analyze responses and conversions.
  

• Gather feedback:

• Conduct mini-interviews with potential customers.
• Find out what they like and what could be improved.

Checklist: How to Choose a Profitable Niche

Use this list to validate your idea:

• Popularity and demand:

• People are aware of your product or service and actively seek it.
  Check through search queries and social media interest analysis.
  

• Profitability:
  

• Compare revenue with customer acquisition costs.

• Quick sales cycle:

• Ideally, the purchase happens quickly (e.g., within 1-2 days).

• Repeat purchases:

• The product or service should bring customers back repeatedly.

• Presentation:

• The product is easy to showcase, and its benefits are clear.

• Affordable price:

• Competitive pricing without compromising your business.

• Geographical availability:

• For offline businesses, ensure effective service to your target audience.

• Expertise:

• Knowledge of the product allows you to create a unique offering.

• Interest:
  

• Passion for the subject increases motivation and business success.

Example: A café with a convenient coffee and pastry delivery service for office workers in the city center.

Conclusion

Choosing a niche is the starting point for your business. Remember, the ideal niche:

• Aligns with your interests and expertise.
• Addresses real audience needs.
• Is profitable.

Use the checklist to validate your idea, start with minimal investment, and test demand. For easier implementation, seek expert advice.

Launch your business the right way and move towards success!