Which Business Should You Start and Why? How to Find Your Niche in Business?

Have you ever found yourself daydreaming about being your own boss but felt overwhelmed by the big question: “Which business should I start?” or “How to Find Your Niche in Business?”You’re not alone, and you’re in the right place. In this article, we’re diving deep into how you can discover your ideal business niche by aligning your passions and skills with market demands.

To make it even easier, I’ve created a downloadable tool “Which Business Should You start and Why?”—a straightforward table filled with crucial questions that will guide you through this decision-making journey. By the end, you won’t just have answers; you’ll have a clear vision of a business that capitalizes on your strengths and fills a real need in the market.

This isn’t just about throwing darts at a board and seeing what sticks. It’s a two-fold exploration—first into yourself, to unearth your passions, talents, and unique advantages, and then into the market, to identify gaps, problems, and opportunities that you’re perfectly suited to address.

Ready to turn those daydreams into reality? Let’s get started.

PART 1. Explore Yourself to decide which business you want to start.

In this section you will need to look closely at your own passions, interests and strong sides. It’s very important to understand yourself to see which type of business will work best for you. In this section you need to answer 6 questions. These questions will help you to decide which business should you start, or how to find your niche in business.

Question 1. What are my interests and passions? What do I naturally enjoy doing, reading about, watching, discussing with friends?

Why is this important? If you love what you do, you’ll stick with it, even when things get tough. Think about what you can talk about all day without getting bored. That passion can fuel your business when you hit bumps in the road.

Question 2. What are My talents and skills

Knowing what you’re good at helps you pick a business where you already have a head start. Why make things harder by picking something you struggle with? Use your natural talents to make your life easier.

Question 3. Which knowledge do I have? Which products, services or areas do I know the most?

When you know a lot about something, you can make better decisions. Whether it’s knowing how to make something, sell something, or fix something, this is where you can shine. You don’t have to waste time and money learning the basics. When deciding which business should you start it’s good to see what you already have in your hand.

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Question 4. Where do I have the most experience and connections? (This will help you decide which business should you start)

Experience is like a shortcut. If you’ve worked in a field before, you know some of the pitfalls and some of the people. Use this to your advantage. Knowing people can also help you get your foot in the door faster than starting from scratch. So, if you are wondering how to find your niche in business, have a closer look at the niches, where you already have the experience and connections, it will be much easier to start and to avoid common mistakes.

Question 5. What are My personal strong sides and advantages? How am I different from others? How can I stand out?

In a sea of businesses, you need something that makes you special. Maybe it’s your customer service, your speed, or your quality. Knowing what makes you different helps you focus on that and attract customers who care about it.

Question 6. What are My personal weak sides? (When deciding which business should you start, pay attention to your weak sides too)

Knowing your weaknesses isn’t just about avoiding them; it’s also about turning them into strengths. For example, if you struggled with learning a language, you know what helps and what doesn’t. You can use that to build a business that helps others facing the same problem. If you are not sure how to find your niche in business, your weak side can potentially become a good niche for business, if there are more people just like you.

Part 2. Explore the Market to decide which business you want to start

In this part we will have 5 questions, but each of them will consist of Part A and Part B:

Part A is what we see on the market. What is the current situation.
Part B is what we can do about it. What is our response to the situation we see.

In this file which I prepared for you, there are 2 columns – one for “what do I see” and one for “what can I do about it”. You will need to write your answers into corresponding columns. And, as soon as you write everything down, it will be super easy for you to see the full picture and decide which business should you start. So, let’s see the questions.

Question 1. What are the GAPS on the market?

Part A. What do I see? Are there products or services that people need but aren’t currently available or are under-served? What is missing or lacking on the market? If you see that there is a gap and something is missing on the market, you immediately ask yourself:

Part B. What can I do about it? How can I fill the gaps? Which value can I create and offer to the market? Value is something people are willing to pay for. They need it. But currently it is missing, so there is a gap. If I can create this value and offer it to the market, I will be able to build my business around it and make money. So, if you see a gap on the market, it can potentially define, which business should you start.

Question 2. What are the main PROBLEMS AND PAINS? (Seeing real pains and being able to solve them is essential when deciding which business should you start)

Part A. What do I see? Which problems and pains of people or businesses do I see? It’s similar to GAPS, but not exactly the same. A product or a service may exist on the market, but still, there are some pains. Maybe the quality is bad. Or maybe it takes too long to deliver. Even the high price can be a problem. Something is not working as it should, and people have problems. They will be happy to pay you if you can solve these pains. So, you also ask yourself:

Part B. What can I do about it? How can I solve the problems and pains? This is why it was important to answer the questions about your knowledge, experience and skills. If you have the experience in this field, you will most likely be able to find a SOLUTION for people or businesses. Finding a solution here is the same as creating a Value – this is something people are ready to pay for. If you see the problem and you have the solution, it might be the answer to which business should you start.

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Question 3. What is the MARKET SIZE?

Part A. What do I see? Is there enough Market to support my Business? You could have the best idea ever, but if only a few people care, it won’t be a big moneymaker. Make sure enough people are interested. You can search on Google if there is any report available. Or, alternatively, you can use one of the Key Word Tools, to see if people search for such products or services, and if these search requests are popular.

Part B. What can I do about it? Here you will need to figure out, which portion of the total market you can realistically win? Later, after you have already decided which business should you start, when you will be preparing your business plan, you will need to investigate the market size and your potential portion in more detail. At this stage it will be enough for you to understand, if you will be able to make enough money in your business niche.

Question 4. What are your MAIN COMPETITORS?

Part A. What do I see? Know your enemies, so to speak. Understanding who you’re up against helps you figure out how to be different and better. So, make a research and list your main competitors in a certain area. If you are choosing from 2 or 3 business niches, create a separate list for each niche. Also list the strong and the weak sides of your competitors. It will help you to see, where it will be easier for you to compete. Which brings us to

Part B. What can I do about it? What are your advantages against the competitors? You always compete in 3 dimensions: price, quality and speed. So, here you will need to figure out, what you can do cheaper, better or faster than your competitors? Again, after you write everything down, you might see the opportunities you didn’t see before. It might help you to make a decision, which business should you start.

Question 5. TRENDS and COMMUNITIES (related to the products or services mentioned in Question 1 and 2).

Part A. What do I see? What are the popular trends in your potential niches? Are there existing communities? Trends and communities are like waves. If you can ride one, it helps you get noticed. Being part of something bigger can give you a boost. If you see a trend, you are looking at the potential opportunity to make money. It might be an answer to which business should you start. Which brings us to

Part B. What can I do about it? How can I participate in a trend, or serve a target community? Maybe you are already a member of a large Facebook group or a club, where you can find your first customers. This is where your existing connections could play a big role. You may find out that you already know some key people who can open a door for you to access your target community.

Write down everything that comes to your mind. After you answer all the questions on the file, compare 2 pages – the Page 1 about your passions, skills, and strong sides, and the Page 2 about your potential market. Search for matches. One of these matches is your future business. You will see a full picture of where you have the biggest opportunities and the highest chances to succeed. This simple tool can help you decide which business should you start.

BOTTOM LINE. Which Business Should You Start?

Finding the right business to start is like completing a puzzle. The pieces include not only your passions, skills, and strengths but also the gaps in the market, existing problems that need solutions, and trends you can tap into. Ignoring either side—the self or the market—can lead to a blurry picture, and perhaps, a less than successful venture.

Begin by asking yourself essential questions: What are you passionate about? What skills do you bring to the table? What makes you unique? These answers give you a foundation to build on. Then, turn your gaze outward to the market. What is missing? What problems can you solve? Where do you fit in?

By doing this two-part analysis, you give yourself a comprehensive view that combines your personal strengths with market demand. This is your road map, your blueprint for a business that not only excites you but also has a hungry audience. Remember, the best business for you is one that you’ll not only love doing but one that others will love you for doing.

So take your time, answer these questions honestly, and let the puzzle of your future business come together. When all the pieces fit, you’ll know exactly which business should you start!