Once you’ve identified an area of interest, dig into the details. Who are the people that would benefit most from what you’re offering? What specific challenges or pain points do they have that you can solve? The more you know about your potential customers, the easier it will be to position yourself as the solution they’ve been looking for.
Say you’re considering a niche in eco-friendly products. You’d want to investigate whether there's an increasing demand for sustainable goods, how many competitors are already serving this market and what gaps might exist. Confirming demand early on reduces the risk of targeting a market that’s too small or uninterested in your offer.
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