Choosing a Profitable Business Idea Based on Your Current Skills & Knowledge
Are you trying to figure out the perfect niche for your online business? There are many ways to go about brainstorming and researching the perfect idea for your online business, and you might already have a few online business ideas floating around in your head. But how do you know your idea is going to be profitable?
The idea of creating a business around something that we LOVE and are passionate about is very appealing for most of us and can be very exciting, but let's face it needs to be a profitable idea.
How do you know if your online business idea can make money?
Here is my simple formula:
- Who do you want to work with? (or who does your program or service help)
- What problem do they face/have?
- How does your program/service solve the problem?
- You can almost guarantee that you have a great business niche if it solves the problems your target market is facing.
Solving Problems Creates a Win-Win Business Model
People are constantly searching for solutions to their problems online. This is why they use Google, search for YouTube videos, Tiktok or ask their friends for help on social media. We turn to experts and friends we trust for help with the issues we're facing.
Your potential clients are searching for these solutions to their problems with their credit cards in hand. People are more than willing to pay good money for something that saves them time, saves them money, and improves their lives by giving them an easier solution to the problem they are facing right now.
How can you be that solution?
Discover the Problems Your Ideal Client is Facing
If you can provide the help your ideal client is facing, you'll have a highly profitable online business. The first step is to discover what issues your target audience is facing.
If you know your ideal client well, you probably have a pretty good idea of what problems they are facing.
But it's better to conduct some market research and base your business niche ideas on the information you collect from them.
Here are some ways to find out which problems your audience is facing:
- Follow discussions on Facebook or LinkedIn Groups, or other online forums, see what issues people are asking for help with
- Go to google and see what people are searching for around your niche
- See what competitors your audience follows. Look at the content they enjoy, share, and comment on
- Ask your 10-15 ideal clients what problems they face and the solutions they're looking for.
How You Can Offer a Solution
When asked what niche they're in, most people will say something like natural health or self-improvement. But this isn't very specific. A better way to think of your business niche is to identify how you solve clients' problems.
Create a statement based on this template:
Your “I help” statement should be VERY simple.
WHO do You help: __ and HOW do you help them: ____
Too many of you stuff a bunch of words together and over-explain what you do.
Don't overcomplicate it; KEEP IT SIMPLE. I know you do all the things. And you can do all the things… But keep it simple. That way, you don't confuse their minds, and they choose to work with you.
- I help women lose weight without food restrictions.
- I help new moms with breastfeeding.
- I help young married couples with financial planning.
- I help the elderly with estate planning.
- I help parents of young children learn how to XYZ.
- I help spiritual entrepreneurs with their social media.
- I help health coaches with their podcast management.
- Keep it short, simple, and to the point, don't overcomplicate it!!! Don't use fancy words people will not understand. The whole idea is to give them an understanding of what you do! (I recommend 8th-grade level) Don't be too vague…use a specific word.
Another example would be, “I help new remote workers to get organized and maintain a good work-life balance.”
You can use this statement when describing your business, and it also helps you to clarify the exact solutions you're offering.
Make It Specific
You can never be too specific with your business niche, so try to identify as clearly as possible what you do. Emphasize how it's unique. Drill down into a specific sub-niche within your niche so you'll have less competition.
Start with your ideal client and the problems you can solve for them. From there, find a business niche that you're passionate about, and what you find in high demand.
If your business idea solves a problem your ideal client is facing, I can almost guarantee your idea will be profitable.
It is a matter of being able to effectively communicate how you can help them and get your message out there to the world.
Alright, let's share your “I-help” statements. Who do you help, and how do you help?