If you’re considering one or more niches and your passion and skills for them is equal, then the tiebreaker is profitability.
To begin to understand the profitability of a niche, answer these questions:
• What specific products/services would customers buy from you?
• What’s the dollar amount of the average sale?
• Would there be recurring/repeat business?
• How long is the sales cycle?
• What are the sales and marketing costs?
• How competitive are the niches?
• Are the niches growing, shrinking, or maintaining?
• How long would it take to become profitable?
• How much of a financial investment would be required to reach profitability?
When you answer these questions, a portrait of a niche’s profitability will emerge.