If you want a successful online business finding your niche and applying the correct business model has a lot to do with your outcome. If you’re confused what niche is best for you and how to build your online business keep reading.
In this article I am going to share some of the most valuable lessons I have learned as an entrepreneur and how choosing the correct niche and applying a certain business model basically determined my success.
Finding Your Niche
First thing I want to say is that your current skill level is completely irrelevant. So if your just starting out with your business for the very first time it’s totally ok. In the beginning I’m actually going to tell you what it takes to go from just an idea starting from scratch to building your first seven figure business.
After we go over the basics I’m going to move into more advanced wealth building strategies that will be extremely important when looking at multiple business niche ideas. Trust me there are many. Finding your niche is not an overnight process.
Our first goal here is pretty simple. I want to make sure you’re able to set the right goal for your life in your business from the very beginning. Making money online isn’t a walk in the park and takes careful planning.
First I want to talk about the basic timeline or your career if you will. So your timeline is basically where you are going to start out today and the end is your business destination.
Unfortunately I’ve noticed that most entrepreneurs are focused on the wrong end goal which is the same mistake that I made. Finding your niche and choosing the right business model can be half the battle.
The worse part is that you’re not going to know that you made that mistake until you actually get to the end and you realize that you’ve messed it up.
Finding Your Niche – Dream Board
Usually for most people the end or their business destination is a financial goal especially when they’re first starting out. Everyone kind of has their dream number in mind.
When I first started my business back in 2002 my dream number was 10k per month. So I actually wrote down on my dream board…
“I Will Make $10,000 Per Month” almost 15 years ago now. I didn’t know it at the time but I was only given one opportunity to choose from. I wasn’t given a list of niche markets like I’m teaching you here today. These are some of the things you have to look for when our finding your niche.
So why was it ten thousand dollars? Well, that’s what my mentor was making at the time so I knew it was possible. It was a real number for me. It was really a number that lit my imagination on fire.
I remember thinking that if I could ever make ten thousand dollars per month I would have it absolutely made. I could do anything that I wanted in life.
Well I’m sure you have your ultimate number in mind and you probably have another one if you’re just starting your business from scratch that is a more urgent priority for you which is this one right here in the middle.
This is what you’d need each month from your business in order to replace your current income and quit your job.
So if your making ten thousand dollars per month at work obviously your first business goal is to make ten thousand dollars per month with your business so you can fire your boss and go full time.
So what’s wrong with this approach? It seems pretty straight forward and reasonable. Well, you know where you are today and you know where you want to end up. You know what your middle goal is.
Finding Your Niche – Defining Financial Freedom
The devil is actually in the details and I’m actually going to share my experience with you real quick. It took me about 6 years to reach my goal of ten thousand dollars per month.
About five of those years was figuring out everything that didn’t work. At the time I wasn’t given a bunch of examples of niche products to increase my chances of success. Once I did figure out what did work it only took a couple years from then to build my first seven figure business.
So you’re probably thinking to yourself. Well you had a business that was actually producing about 50k in pure profit per month so what’s the problem?
Well the problem is that I mistook the ability to generate revenue or income for financial freedom. When I first started out I defined financial freedom in my head as 10k per month. That was my first goal.
My second goal was to build a multiple six figure check. But in reality that still wasn’t financial freedom. Finding your niche is just piece to the puzzle. I found the right niche business after testing several. The money was flowing but I was just working more and more.
So I’ve since learned what that actually is and today it has a different meaning. Financial freedom is the ability to replace your active income with passive income from investments and other assets which completely frees up your time.
It gives you actual financial freedom which means my money is basically working for me instead of me working for my money. Finding your niche will help.
I didn’t realize that mistake until just a couple of years ago. In fact the more money that I made back then the further I actually moved away from real financial freedom. As I proceeded to increase my lifestyle to reflect my business success.
I went out and bought fast cars, boats and expensive homes and in order to sustain that I was working 12 hours a day and 7 days a week. So in reality I ended up with the complete opposite of financial freedom. I ended up a slave to my lifestyle.
Finding Your Niche – Defining Your Life
So here’s the lesson I want you to take away from this. Be very very careful when it comes to defining your goal. In fact this applies to every aspect of your life. Finding your niche and applying goals.
So for example just a short while ago my friend Jennifer just got engaged and several times I’ve heard her say I can’t wait to have kids or I can’t wait to have a child. It sounds great if you want to have a child.
Obviously it’s a great thing to say and to want but what I pointed out to her was that saying I can’t wait to have kids is actually very very different then saying I can’t wait to have a family.
One statement assumes her husband is actually going to be in the picture and the other does not. As for your business there’s absolutely nothing wrong with setting an income goal but realize reaching your income goal is not the finish line. In fact that’s the halfway point. Finding your niche then applying goals. Piece of cake.
If I could start all over again I wouldn’t define my goal as making 10k per month. I would of defined it as making 10k per month from passive cash flow assets. If that had been my definition of success
I would of made some very very different decisions with my business and saved myself from making some very big and expensive mistakes as I made more and more money.
So what I want you to do right now is to sit down and think very carefully about the way you defined your business goals. The words your using and the language patterns. It’s not just about finding your niche but also the language you use.
Finding Your Niche – Be Specific
Make sure your not making the same kind of mistakes that I did by putting assumptions into this goal and assuming that if I get “A” your going to get “B” because that’s not going to be the case.
Be very very specific of what you want at the end of the process. Even if you pick the perfect niche company and you make lots of money that’s just the beginning. There is still a lot of work to do.
Next I want to move onto one of the most common questions that I get.
What happened during that eighteen month period that allowed me to go from dead broke working dead end jobs to making 10k and eventually 50k per month just a couple years after?
Well it had a lot to do with finding a niche that was perfect for my strengths that I could grow with.
I’m going to talk about this step by step and it’s going to be directly applicable to you no matter what industry your in or what kind of business or niche your trying to build. This is one of the most valuable lessons that I can share with you so here we go.
I want you to remember that in the beginning I was dead broke but I had my big goal of making 10k a month posted on my wall right next to my computer. When I started to work online I was broke my first six years. Still working dead end jobs and found myself 40k in debt.
Finding Your Niche – Determination
That chapter in my life didn’t have the fairy tale ending that I’d hoped it would.
Despite my complete lack of results and all of those setbacks I hadn’t given up still. With every failure I gained more and more experience and really more and more determination.
Some how and some way slowly and surely I started to move forward. Step by step brick by brick and I honestly have no idea how much I was making at the time but my business started to make money. That when I realized finding your niche was just a piece.
I’d say $500 dollars a month sometimes $1000 dollars per month when things started to work a bit. But after years of all of these lessons learned the hard way I started to see light at the end of the tunnel. My confidence began to grow by the week.
Frankly the stench of clothing covered in sweat and fast food as I entered my car every night at 11pm after working some dead end job grew more and more sickening with every dollar that my business made.
I don’t really remember the exact catalyst of what pushed me to this point but one day I remember reaching out of this magical moment where the pain of staying where I was was finally greater than the fear of failing where I was headed. Think of that for a moment. That was when I realized I was going to make this work no matter what it took.
One day I decided enough was enough. At that time in my business I was making about $2000 per month and most of my debt was paid off so it was time. I quit all my jobs and it was time to scale my business. Finding your niche and have a never quit attitude.
When I started my first business I was looking for a magical system or a ground floor opportunity that would make me money. I thought it was the opportunity or the product or the marketing system that would bring me the results that I wanted. In short I was looking outside of myself for success.
Finding Your Niche – Direct Reflection
I wanted to find a way to get rich which would cater to my weaknesses so that I wouldn’t have to do the work that I really needed to do in order to become the person I needed to be that was capable of getting those results.
What I realized during that period changed everything for me and what I’m about to share with you is the one and only way out there to achieve the success that you want in your business or any aspect of your life.
What it comes down to is this. The amount of money that you make today is a direct reflection of what I call your personal value level.
So human society uses a very simple tool called money to quickly and easily communicate the relative value of everything from an apple to a gallon of gasoline to the wage for a job.
Through our free market system the world basically gets to dictate how much money you make according to three different factors.
The first one and you’re probably going to want to write these down is the number of people who are also capable of performing a particular job. In other words. Competition.
The second factor is the amount of skills or specialized education that you would need to perform that job. In other words. Expertise.
The third factor is the amount of people around the world that your work is going to benefit or impact. In other words. Leverage.
Choosing The Right Niche
Lets take a look at some jobs out there. How about a restaurant waiter. There are two reasons why restaurant waiters make such a low wage on average. Other jobs in this category would be a janitor or someone in retail.
Lets look at factor number one. As a waiter there is almost an endless supply of workers that can fill that position. There’s a ton of competition.
Why? Because of factor number 2. Waitressing doesn’t require any expertise or specialized skill or education to perform such duties. Your also only serving say 12 or 15 people at any given time which means you have no leverage.
So if you’re in one of these positions your personal value level or “PVL” is really very low to the world which is why your not making that much money.
On the other end of the spectrum lets take a brain surgeon for example. Lets say they make about a million dollars a year. That’s because there’s not a lot of competition, there’s very few qualified individuals in the world that are able to perform that task.
What Niche Is Best
Also the work requires a ton specialized knowledge and skills and over ten years of schooling. If you were to look at a list of business niches there may be only a handful in this one.
But when you get to number three that’s when things kind of fall off the bus. You can only perform brain surgery on one person at a time. So there is really no way to benefit the masses. There’s really no leverage.
So the reason a brain surgeon makes about a million dollars a year instead of say 20 million dollars a year is because they are missing that piece of the puzzle. There are many online business niche markets that you can make the same money because you have much more leverage.
Lets take a third example and look at a professional internet marketer who sells their own information products online. What would you guess the PVL would be in this niche business?
Are there many people that can write a book or put together a training series from years of personal experience? Not really. There’s only maybe a few thousand of people in the United States for example who were able to do this. So there is very little competition.
So does online marketing require specialized skills? Obviously yes and these skills are not taught in schools and you can’t really go to college for them. They can only be learned by those who proactively seek out trainings like this that you’re consuming today.
Number three does that business model provide me with the ability to impact the masses? Obviously the answer is yes. So if I was teaching people to market online lets say one on one, over the phone or in person I’d have very little leverage.
But because I produce trainings and build lists through social media and other strategic marketing systems I can reach out to an infinite number of people in the world. I have an infinite amount of leverage.
As you can see internet marketing has low competition, it’s very specialized and there is a ton of leverage if you find the right niche that you scale.
So as you can see my dead end jobs in the past had a very low PVL to the world where my job as a modern day educator and online marketer where I can reach the masses has an extremely high PVL.
One job pays about 30 thousand dollars per year the other job pays millions of dollars per year. Yes the amount of work hours on a daily basis is basically the same.
So that brings us to the question how do you increase your PVL? The good part is that answer to this question is pretty simple. The fastest way to reach incredible levels of success in your life and in your business is to increase your value to the world. The fastest way to increase your value to the world is to acquire new skills.
So after I had this big epiphany and after I realized this years ago I really became a man on a mission. I spent every dime that I had on information courses and books. I worked thousands of hours to learn specialized marketing skills that others were unwilling to do.
In the process I became extremely valuable to other people. So which skills should you focus on and which skills are the most valuable? Well, if your goals is to build a successful business you need the skill or ability to acquire customers to sell your products or services.
Finding Your Niche – Implementation
It really doesn’t matter what niche market you choose. If you’re a dentist, an author, or an online marketer. If you don’t know how to get customers you’re basically screwed right from the beginning.
So the most valuable skill that you can acquire and the skill that can provide you with the most leverage is how to sell. Having niche ideas is great but knowing how to implement a strategy which gets you sales is catalyst.
When I say sell I don’t mean the typical used car salesman type of selling where I am trying to twist your arm or manipulate you into buying something you don’t need.
I’m talking about the complete opposite of that. Really in the past 15 years or so it’s been given the name attraction marketing. That’s having the skill or ability to attract prospects to you then take them through a marketing process that will result in the purchase of your product or your service because they want to buy it.
It’s their idea. It’s not because you twisted their arm or something like that. If you’re unfamiliar you should read some of Dan Kennedy’s books. Obviously that was the inspiration for me when I started back in 2002. Dan is a mentor of mine and an absolute genius when it comes to this stuff.
This is a great example of coming into the perfect niche online business back in the early 2000s. Most entrepreneur’s were just starting their online business and needed an attraction marketing blueprint. They just didn’t know it at the time.
Now at the end of the day here is the lesson I want you to take away from this. If you want to make more money you have to make yourself more valuable to the world. The fastest way to do that is acquire new skills by investing in yourself and your education.
Finding Your Niche – Biggest Library
Personally I have spent tens of thousands of dollars in my own education on books, courses, traveling to mastermind groups and events just to maintain a high level of value to my customers.
It’s kind of funny and without exception some of the most successful entrepreneur’s that I’ve ever seen, hung out with or studied under. The ones with the biggest bank accounts and the biggest businesses also happen to have the biggest personal libraries.
They don’t stop learning when they reach their goal. They do the exact same opposite. They start to spend more and more on their education and just keep moving their level of value to the world higher and higher.
This realization was the turning point in my life and my career and it will absolutely be the turning point in your career as well.
So I hope this makes sense to you. Keep reading if you’re ready to find the perfect niche business for you!
Finding Your Niche
I want to point out there is a different between what niche you’re in and what business you want to start. Finding your niche is fairly simple choosing a business model can be a bit overwhelming especially if this is your first time starting an online business.
A niche is basically a specific product or service that can be just about anything. Some examples are health and wellness, pet food, hunting, etc.
Some niches are much more specific. Some examples are hair strengthening, hamster toys, poisoned arrows.
When you choose your niche the next step is to find what business model is best for you. In the example below we will use ten different business models.
So one of the most common questions I get from people is, “Josh, I’m really into the idea of quitting my job and having more freedom but i’m not really sure what niche is best and what kind of business I should start”.
That is a great question because deciding what kind of business you want to start is one of the most strategic and important decisions that you’ll ever make. Also, there is no lack of options to choose from.
Lets imagine you’re going to start a business in the weight loss niche. Lets look at all of the options that you could possibly pursue in that industry. There are many more but lets use ten examples.
- Create an Ebook
- Manufacture Gym Equipment
- Create Supplement Products
- Build a Workout App
- Be a Personal Trainer
- Be an Affiliate Marketer
- Join a Network Marketing Company
- Start a Fitness Blog
- Create a Membership Site
- Do Local Marketing For Gyms
Finding Your Niche Figuring It Out
Now we have ten types of businesses in one single niche. The health and wellness niche. Now you must decided what business model is best for you.
I’m going to walk you through the process I’ve personally used over the years to help figure out what business models to create around your passions.
So what kind of business should you start? I want you to right now make a list of all the types of businesses like we did in the health and nutrition industry example.
Once you have that list I want you to take your current skills, personality and goals into account. You want to choose a business model aligned with your strengths.
Me for example, I know I’m not wired for an analytical or details oriented business Asking me to take a look at a companies financial spreadsheet or to use excel for any reason whatsoever is like asking a monkey to go drive a car. It’s not going to be pretty.
I know my brain is simply not wired for those types of tasks. So you must find the right business model that best matches your strengths.
So what I’m going to do is take a look at the list I made above. Just glancing over my list I can see 5 businesses models I am not be interested in building for various reasons.
Finding Your Niche – Business Models
So I’m left with five business models within the my niche to choose from so I still have to make some important decisions before I start my new business.
It’s also important to note in most cases it doesn’t matter which niche your looking at. You can apply these types of business models to most of them.
The second step in the process especially if you’re starting your very first business. I want you to note the businesses on your list that requires you to raise capital to take out a loan or you think would take more then twelve months to start . I want you to cross a line through those.
What we are looking for are the options that are simple, fast and inexpensive to start as possible. What we are doing is trying to find the most elegant business model for you as possible.
If this is your first time starting a business and you haven’t had success yet you want to minimize your risk as much as humanly possible. At this point you probably have a few options left on your list.
Step number three in the process is choosing a model that fits your income and lifestyle goals . Do you want to work from home or do you want to go to an office. Maybe you like to be around people. Maybe you like to work with your spouse. Or maybe you just want to go at it solo.
Do you want a business that has the potential of making twenty thousand dollars per month or two million dollars per month.
Finding Your Niche – Economic Chaos
Remember, in my example I was already making good money online but was looking to scale my business and passive income. So everyone is going to be in a different situation.
My biggest problem with my online business at that moment in time I didn’t know how to invest and scale my business. I really became obsessed with figuring out how the wealthy invested their money especially in a world of economic chaos.
So reading and researching this subject matter is all I really did in my spare time. It’s kind of what I did for fun. So I wanted to build a business that would allow me to work from home with as few employees as possible with and also as little technical infrastructure as possible. I’m really not a tech guy. Lastly with as little overhead as possible.
So while I was passionate with investing I was really a newbie with no experience when it came to that subject matter. I knew how to make money online but wasn’t so great at scaling my business or starting new business to create more passive income.
The secret is to create a business that’s giving you passive income and start another business when it’s basically running itself. You can be in multiples niches building multiple business models.
Finding Your Niche – Goals
So my goal was to come up with a business that would generate revenue within 90 days. I wanted something that was quick to build and that would cost lets say $5000 dollars to set up more or less. I still wasn’t sure what niche I wanted to build a business in.
Remember I started with ten business models on the list above. Now keeping the desire that I had for simplicity in mind a few business models were immediately crossed off the list.
One things I learned working online over the years. You become familiar and comfortable with certain business models and duplicate the same processes in different niches. It works very well!
I was now left with three choices. A blog, a private membership site and network marketing. Out of these options here I had to choose which one of these business models was capable of giving me the results I was looking for.
Is the opportunity big enough to make it worth your while. This really comes into play depending on the niche you’re in. If you’re in a super small niche lets say hamster training you’re probably not going to be a very big industry. There might be a couple hundred people trying to figure out how to train their hamster.
It’s obviously not a big market so is the reward going to be worth the time, effort and money to build up this business. That’s really what we are trying to identify here. That’s personally going to be determined by your personal income goal.
Lets look at the three options I personally had left on my list which was blogging, a private membership site and network marketing.
Monetizing a blog typically is through ad revenue or marketing affiliate products. If executed properly and with skill this kind of business can produce five thousand or so promoting affiliate products within four to six months. Then it could go on to produce lets say thirty thousand dollars per month or more within one to two years.
This is if you’re starting from scratch but really pursue it as a full time business. There are a hand full of blogs that make millions of dollars like Mashable or a lot of the big ones in the tech industry.
Finding Your Niche – Setting Things Up
So the opportunity here is big. Somewhere in the seven figure per year category. For someone that is new to business this business model may be very enticing. For others it may not be. Earning a seven figure income at that time was very exciting to me however I wasn’t familiar with blogging at all so I decided to take it off my list.
The second option was building an online membership site. Basically interviewing professionals in some niche. Setting up the technology and infrastructure for a monthly paid membership site would probably cost me at the time three thousand or more but that was just a guess. Time frame on that I had no idea.
I wasn’t familiar with how much content would have to be produced on a regular basis. I decided I wasn’t ready to pursue that business model because the learning curve would inhibit my growth. So I crossed it off my list.
My third option was network marketing. After giving it a go with two companies I still never made any real money. So I was still hungry to make it work at least once. So this was my choice back in 2011.
My business partner introduced me to a fairly new company and he was getting great results. I really liked the business model at the time and I was willing to take the risk. I decided to give it a go and invested exactly $4600 and started building my team.
Fortunately I had a small list of people to reach out to and 16 joined within a week or so. Within six months my income hit almost 50k per month and my team exceeded 25k people. Within a year my income exceeded my goals and my team grew to almost fifty thousand people.
So not bad for a business that was set up completely in a couple weeks for less than $5000 bucks. Unfortunately that company went out of business. I was able to make a great profit but it was time to implement my strategy once again.
Finding Your Niche – Conclusion
You see in business things are evolving and changing constantly. Nothing is really 100% and that’s what makes it exciting and why you need to keep working on your skills and growing as a person. I am still growing my businesses and learning as I go.
So this is the blueprint and the process I use over and over when building multiples businesses in multiple niches. In my humble opinion this is the most powerful method when starting any sort of new business.
So if something happens and it doesn’t work at least you learn some lessons from it. Obviously with the examples I’ve shown you the income potential when starting your own business from scratch is really unbelievable. Especially for someone just starting out.
You can apply this strategy in any niche. The business models may vary somewhat but not much. My three favorite business models are blogs, membership sites and network marketing. I can build these business models in basically any niche out there. So when finding your niche apply my strategies when your ready and go for it!
Wishing You Only the Very Best!
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