Interested in standing out as a business? Then, you must find a niche to serve.

However, a niche doesn’t need to be a specific location or industry.

There are actually lots of unique ways to pick a niche creatively so your business can stand out from your competitors.

Besides distinguishing your business from competitors, having a niche allows you to specialize in a particular field, granting you credibility as an expert. And this credibility makes growing and retaining your customer base 10x easier.

So, with that in mind, here are some tips on the best creative ways to find a unique niche for your business.

How to find a niche (summary)

Here’s an overview of some of the best ways to find a niche:

  • Solve a big painful problem your clients have (Best overall)
  • Consider your passions and interests
  • Analyze market trends
  • Define your target audiences)
  • Research the competition
  • Evaluate your strengths and weaknesses
  • Determine your unique selling point
  • Test your idea
  • Establish a marketing strategy
  • Monitor the results

By watching my free Masterclass training, you will learn how to communicate HOW you solve a big painful problem for your niche in more detail.

Why pick a niche in the first place?

Picking a niche is a great way to stand out in your marketing because you’re:

  • Speaking to a specific group of people
  • Delivering better results to your clients (because you understand your niche better)
  • Getting better results with your own lead generation strategies.

So whatever happens, it’s good to be specific with the kind of people you can help and HOW you can help them.

With that in mind… How do you pick a niche without choosing an industry or location?

Watch this video for some ideas:

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What are the best tips for picking a niche?

1. Solve a big painful problem

Best overall


One of the best ways to find a niche is to solve a big painful problem your potential clients have.

Contrary to the popular notion, business niches extend beyond the scope of industry or geographic location. You see, a common problem or unmet need among a group of people can also constitute a niche. 

I’ll give you an example.

In my business, although I have more experience serving clients in the marketing and finance industries, my services cover lead generation in multiple industries.

And what these clients have in common is the problem I help them solve: gaining high-quality leads and consistent monthly sales appointments.

So, in your business, if you solve a problem that multiple industries have, your niche can just be the problem you solve.

Furthermore, even within a niche industry, this strategy still applies. 


  • You don’t limit yourself from only working with one industry or location
  • There is a high potential for growth and profitability.
  • Doing this will distinguish your business from competitors.
  • It leads to a higher chance of brand loyalty.
  • Your business could make a meaningful impact on the global market.


  • Identifying the gap in the market can be difficult and time-consuming.
  • The unique need might not be scalable.
  • Solving complex problems could be resource-draining.

2. Consider your passions and interests

Any business owner must’ve heard people recommend making a career out of your hobby at least once. And true to that, your passions and interests significantly affect selecting a niche. 

So, what is that skill that you are naturally talented at? What do you love to do? 

The founders of Allbirds, a sustainable footwear company, had the same idea. They were former professional soccer players who envisioned creating eco-friendly, comfortable, and functional shoes. They successfully built their reputation in their niche by leveraging their expertise and passion.

But listen carefully…

While it is a great point to start from, I do not recommend choosing a niche solely based on your passions or interests. You must consider certain factors, including profitability, scalability, and demand for that skill set. So, use this tip in congruence with the subsequent tips. 

Essentially, passion is a driving force of motivation for businesses, and you would do well not to underestimate it.


  • You will gain a sense of fulfillment and personal satisfaction in your business.
  • Passion will help you stay motivated during challenging times.
  • Your expertise and talent will give you an edge over competitors.


  • The market demand could be different from your interests and passions.
  • Passion is highly dependent on other elements for a successful business.

3. Analyze market trends

As I mentioned, it is not enough to identify your passions and interests and expect a successful niche establishment. You have to determine whether people would be willing to purchase the services or products you intend to offer. As such, you must analyze market trends to ascertain the niches in demand.

That sounds like extensive research to me.

Tools like Google Trends and the ever-accessible social media channels such as Twitter make this task relatively easier. Use these tools to determine the niches that are in high demand with low, competitive rates. 

Take things further by doing some in-person findings to supplement your research. Discuss with potential customers to gain valuable insight into their preferences and modify your brand projections to suit them. 


  • Examining market trends keeps you on top of emerging opportunities.
  • It helps you anticipate market changes and tailor your strategy accordingly.
  • It allows you to stay ahead of the competition.


  • Market trends may not accurately portray the preferences of your target audience.
  • They may not apply to your specific niche.

4. Define your target audience

Target the right leads

Here’s another creative way to find a niche. Think about the people. Who are the people you want to cater to? Where do they live? What are their interests? Defining your target audience could help speed the niche-picking process up a bit. 

You see, once you’ve figured out the kind of audience you want to provide for, you can try to solve a common problem that your potential clients have or cater to a general need. Whichever way, this certainly narrows things down.

You must consider their age, gender, lifestyle, budget, job title, interests, and location. These demographics will affect your tone, marketing strategy, and general business choices. For instance, if your target audience were teenage boys in a sports-loving town, you’d consider starting a sports blog or selling sports equipment.

What’s more?

Understanding your target audience helps you modify your business to satisfy their preferences and relieve their pain points.


  • Defining your target audience will help you employ exemplary marketing strategies that appeal to your potential customers.
  • It enables you to identify and adequately cater to your customers’ needs, pain points, and preferences.
  • It leads to effective resource allocation.


  • Narrowing your target audience could limit your potential customer reach.
  • Relying on assumptions about your target audience could lead to erroneous targeting.
  • It requires deep research, which may not be definitive.

5. Research the competition

Sales call

After evaluating market trends with keyword research and defining their target audience, many people fold their arms and sit back. But you won’t make that mistake because you understand the relevance of competitor research to finding your niche.

You want to look out for a few things.

First, if many popular websites are already ranking for the keywords associated with your chosen niche, then it is a fair conclusion that the niche is oversaturated. If no sites rank, it could indicate no market demand for the niche.

However, the niches with ranking from small sites have a perfectly competitive environment for a lucrative business. 

And I suggest you pursue it. 

At this point, you’ll need to study the competitors to discover their strong points and their lacking areas. This knowledge will help you find unique ways to cover their slack and seize the market. 


  • Researching the competition will help you discover opportunities to distinguish your brand from competitors.
  • You could discover gaps in the market that need filling.
  • You could develop an effective competitive strategy after examining their strengths and weaknesses.
  • You could identify industry practices worth emulating.


  • You might end up losing your originality and authenticity by copying industry practices.
  • It could stunt your ability to take risks.
  • It could be time-consuming.

6. Evaluate your strengths and weaknesses

Your competitors are not the only ones with strengths and weaknesses. So, it is time for some introspection. Ask yourself the important questions. What are your strong points? What aspects could improve?

Identifying your strengths could lead you in the right direction when picking a niche. If you possess expertise in a certain market segment, you can wield it to your advantage. For instance, a writer with a law degree could specialize in academic writing for law firms. 

Plus, being honest about weaknesses will help you identify opportunities for improvement, outsourcing, or collaboration. Here’s a common example. Not everybody is skilled enough to handle their business records, so an accountant is usually employed to handle those affairs.

However, you could consciously try to learn if you’re up for a challenge. Doing this would further expand your niche and lead to long-term success.


  • Evaluating your strengths and weaknesses will help you identify areas that need improvement and areas that you can leverage.
  • It encourages you to address your weaknesses by either improving or outsourcing.
  • It leads to specialization.


  • It is largely subjective and might not comprehensively outline your abilities.
  • Excessive reliance on your strengths might lead to complacency.
  • Doting on weaknesses could cause self-doubt and stunt confidence.

7. Determine your unique selling point

Why should potential clients choose your business among the competitors in your selected niche? What special product or service do you offer that sets you apart from the crowd?

To identify this unique distinguishing factor, you must merge your passion and expertise with the market analysis. Your unique selling proposition could be a special skill you have. Then again, it could be a response to competitor weaknesses. 

And Warby Parker, an eyewear brand that offers affordable high-fashion glasses in response to the gap in the market, is a perfect example.

Combining niches into micro-niches also does the trick most times. Further specialization within a chosen niche creates special value for the consumer.

All you need to do is think outside the box.


  • Determining your unique selling point will distinguish your brand from competitors.
  • A good understanding of it would help you channel efforts into meeting the specific needs of your target audience.


  • Deciding on a unique selling proposition can be challenging and time-consuming.
  • It may require consistent refinement.

8. Test your idea

It would be a real shame to fully commit to your niche and then discover some fundamental hindrance. As such, to avoid hitches, it is best to test your business proposition before launching it.

How do you run an accurate test?

You could give a beta version of your product to willing participants or organize an experimental trial of your services. This only works if you get feedback from these early adopters and refine your brand before the full launch. 

Here’s an example.

This razor company, Dollar Shave Club emulated this tactic by testing their idea with a viral video. Essentially, the responses from their video gave them enough validation to launch successfully.


  • Testing your niche idea reduces the risk of wasting resources on an uncertain concept.
  • It allows you to discover potential weaknesses in your idea before the final launch.
  • You can incorporate insight from feedback into the product or service improvements.


  • It might not be cost-effective to give out demos for free.
  • The results from testing may not be definitive as customer preferences change rapidly.
  • Negative feedback could diminish the motivation to continue the business.

9. Establish a marketing strategy

After you’ve found and established your business niche, you must make contact with your target audience to convert them into customers. And no, you cannot eyeball it because how you market your brand matters. You want to ensure that your marketing channels resonate with their intended audience.

And I’ve got just the thing for you.

In my free training, I teach the best cost-effective marketing strategy to generate quality leads that convert into monthly sales appointments. So, give it a look.

In any case, this marketing strategy could be social media marketing, influencer marketing, organic content marketing, or paid advertising. Regardless of the strategy you choose, you must consider the platforms your target audience is most active on. Finally, your copy and messaging should outline your unique selling point.


  • Marketing strategies improve the effectiveness of lead generation.
  • It would lead to increased brand awareness and higher sales appointments.
  • A good marketing strategy would maximize your return on investment.


  • Developing a good marketing strategy can be time-consuming.
  • The marketing strategy may be ineffective without a proper understanding of the niche.

10. Monitor the results

Selecting your niche is only the beginning. Subsequently, you are responsible for monitoring your progress and improving your strategy where necessary.

Ensure you keep an eye out for new market trends and useful strategies to remain ahead of the competition. You could also consider creating a customer feedback system using online surveys or questionnaires. Review this feedback and modify your products or services per your customers’ needs.

Furthermore, it would be wise to periodically assess your niche to confirm that you still provide value and seek ways to increase your value.


  • Monitoring the results will help you track your progress.
  • It leads to the optimization of your strategy to achieve your goals.
  • It encourages improvement.
  • It keeps you well aware of market changes.


  • Monitoring your results could be time-consuming.
  • There is a risk of prioritizing short-term results.
  • A lack of knowledge of the metrics to acknowledge will lead to poor decision-making.

The bottom line

Selecting a market niche is one way to stand out in a highly competitive market. And you already know it is a smart business decision for various reasons. In addition to improved customer loyalty and increased brand credibility, catering to a specific audience would lead to more productive use of marketing resources. 

Speaking of marketing…

If you aim to build a successful business within your selected niche, then generating quality leads should be a priority. To this end, my free training will teach you exceptional lead-generation strategies that will put your business on the radar.

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Frequently asked questions (FAQs)  

What is an example of a business niche?

Because a business niche caters to a specific audience, a good example would be a vegan food company. Rather than serve the entire food industry, such a company would specifically provide food products for vegans. 

Why is it important to find a niche for your business?

Finding a niche is important because it enables you to establish expertise in a certain field and sustain a loyal customer base. By specializing, you increase your brand’s reliability and create a reputation as a go-to provider within your market niche.

Can a business have multiple niches?

It is possible for a business to have multiple niches as they often overlap. However, ensuring these niches are closely related would be better to avoid excessively extending your brand and confusing customers.