2nd Part-This Unfair "Niche Finder" Helped Me Make $1.1 MM Yearly

🌟 70% of one-person businesses fail in the first 3 years of starting out.

The reason?
👉 We drive ourselves by passion but do not spend sufficient time to validate ideas.

I experienced it firsthand.
💔 My first 2 one-person businesses failed until I figured out that there is no shortcut.

I had to:
✔️ Find out a way to focus on the right things.
✔️ Not work on things which I think are right but on what is right, backed by data.
✔️ Find a niche based on passion, problem, and profit.

But… I did not have any template and had to figure it out by myself.

💡 This is the reason I am creating this in-depth Niche Guide so that you do not have to fail like me.

Link of my Free Ebook - Download now

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In the last newsletter (Here it is )

We discussed the framework on finding the list of ideas based on your interest.
👉 If you did not read that, I would recommend reading that one first before reading this.

In this newsletter, we will go in-depth to test the idea based on data.

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What We Know So Far:

Step-1: Identify Self & Environment

The first step is to find ideas that we are passionate about from the below list:

1️⃣ Business Access
2️⃣ Past Experience
3️⃣ Connections
4️⃣ Interest

👉 After going through all the steps, we will have a list of ideas that we want to pursue.

The next step is to map the ideas in an effort vs. impact matrix to find out ideas that have:
✔️ Low effort and high impact
✔️ High effort and high impact

So, now we may have ideas that we want to pursue and have high impact based on our understanding.

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Step-2: Iterate Using the Data

To evaluate each idea that we listed out based on data, we will evaluate the ideas in 3 areas:

1️⃣ Supply-based vs. Demand-based Validation
2️⃣ Competition Analysis
3️⃣ Persona Mapping

Let’s evaluate each in detail:

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Supply-based vs. Demand-based Validation

Back in 2021, when I thought to start my agency business, I was obsessed with the supply part:

• How can I use the best software?

• How can I learn the right skills?

• How can I do 5 things for the clients?

Now when I think about it, I was so wrong.

❌ The reason?
When we start something, we often focus on the supply side, but we should rather focus on the demand side.

👉 If people do not want the solution that you are working on, it simply does not matter if you have the best solution in the world.

✨ It is a great solution for no one’s problem.

So, the question is:
👉 How do we validate if there is sufficient demand for the ideas that we listed?

These 3 tools help me in coming up with the right numbers:

1️⃣ SEM Rush
2️⃣ Google Trends
3️⃣ Book Beam

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SEM Rush:

Step-1: Find the successful website in your niche (e.g., your competitors).
For example: Imagine you want to write content about Stoicism.

Step-2: Check the people visiting the website of competitors using SEM Rush.

💡 This will justify that there is sufficient demand for the niche you want to pursue.

Google Trend:
You can also check if people are searching for the keyword that you want to target in your niche using Google Keyword Planner.

Book Beam:

Book Beam is ideal if you want to publish books in Amazon KDP, but I found it is also very good at analyzing competition.

Step-1: Identify keyword competition and demand for the keywords that you are targeting.
Step-2: Identify the competition vs. demand ratio for all the related keywords.

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Persona Mapping

Now that we understand the demand and competition in our niche, the next step is to understand our target customer.

🎯 The outcome of this exercise is to identify one person who is a perfect customer, has the requirement to buy our product/service, and has money to pay for this.

So I use the following aspects to identify the target customer:

1️⃣ Demographics: In which country does my ideal customer stay?
2️⃣ Income: What is the average income?
3️⃣ Problem: What is the one problem for which he/she is ready to pay?
4️⃣ Male/Female: Is it a mix of male/female, or is it dominated by one gender?
For example, in beauty products, it is majorly dominated by female customers.
5️⃣ Which platform they spend time on:

• Do they consume video or text content?

• If text, where do they spend their time reading? Is it Medium, Substack, or LinkedIn?

👉 Analyzing our target customer based on these aspects will help us have a better understanding of our target reader/customer.

I know this is a lot , you can download my free e-book here .

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The Next Step:

The next step is to test our idea in the market.

✨ This is perhaps the most important step in the process, and I see people completely miss it and jump to create a solution.

We shall discuss this step in detail in the next newsletter.

Conclusion

Success in a one-person business comes from aligning your passion with data-driven validation. 🎯 Take the time to analyze demand, understand your audience, and focus on the right niche. Stay tuned for the next newsletter on testing your idea in the market! 🚀