Step one: Identify your audience
If you are an early stage entrepreneur looking to start a viable business in a market you are passionate about, rather than focusing on what product you want to sell, start first with understanding your audience. Why should you concentrate on a niche audience first, instead of products?
According to Chris Ducker, outsourcing guru and Internet business entrepreneur, there are two solid reasons to prioritize finding an audience to promote to over identifying products to promote:
"Products come and go, but niche audiences stick around forever. If you’ve ever been promoting a product profitably and then had it decline in popularity (or pulled off the market entirely), you know what I’m talking about."
"When you choose a niche audience and take the time to understand their needs deeply, a whole new world of options open up to you. You switch from struggling to find ideas for products, to instantly knowing exactly the types of products you should be promoting – because they’re in tune with your niche audience’s needs."
While his advice is geared towards affiliate marketers who earn commission from products they promote online, it’s great advice for any entrepreneur seeking to better connect with a targeted audience of customers who have both the inclination to buy AND the capacity to pay.