#+title: S01:O5 - phase 2: narrow 20 ideas to 5
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We’re going to take our big list of niche ideas that we have brainstormed, and narrow it down to just 5 ideas.What we’re going to do is take our big list of ideas, and identify the ones where we think we might have a unique ADVANTAGE in them.

And to do this, we will NOT be using research data because using research data is actually quite time-intensive. For most people it isn’t realistic to come and take all of their niches and deep dive into them, it would take too long.

So instead, we’re going to figure out which niches on your list you have an advantage in by asking some very important questions. About YOU. Yes, YOU.

And my first question to you is this: What are YOU passionate about? This is THE number 1 factor to consider.

That is for 3 reasons. The first is that it’s because the number 1 trait that has been identified by researchers, when researching people who are successful in all endeavours in life: whether it be finicial and business success, or whether it is sporting success, or it is artistic success, is that they all share the same number 1 trait: GRIT.

Grit is the willingness to stick at something, even when it is tough. And one of the easiest ways to have grit is to enjoy what you’re doing and to have it make you smile, and to have it be fun.

And the second reason is that by picking something you are passionate about, YOU often have secret knowledge about it. So for example, I am a travel geek. I love all forms of transport: such as cool buses, or cool trains, or cool planes.

Being obsessed with planes means that I have a lot of secret knowledge about the niche that people with only a surface level knowledge would know. For example: most people get on a plane and don’t know the model of the plane that they are flying on.

But I know the different jargon of the different plane model names, and their advantages and disadvantages. And I also know a bunch of frequent flyer slang as well, such as the phrase “mileage run” which refers to taking a series of flights just for the sake of getting more miles so you can get higher status on planes.

It’s slang and knowledge like this that can help you make products that people in your niche will love and identify with.

And the third, possibly most important reason, is because if you are passionate about a niche or like it, then YOU are a target customer.

And this makes it easier to create products that fill a gap in the market.
GAP IN THE MARKET means to create a product that a customer would like, but that they currently can’t get. Or it could be that you come up with a brand new product idea, or that you take a pre-existing product, and make it better, or put a twist on it that people would like, but currently can’t buy.

And when you fill a gap in the market, it can make a lot of money. Because when people see your product, and go ‘Oh, that is so cool, I haven’t seen anything like that before, I would like to buy it!’

They have to buy it from YOU. This is one of the best ways to succeed as a new store. Rather than competing with big stores by copying them, if you fill gaps in the market, people have to pick YOU instead of them.

But, to identify a gap in the market, you have to be able to go into the mind and brain of your potential customers.

And so rather than just try and guess what they want, picking a niche where YOU are the target customer lets you just think to yourself, “OK, What product would I like that doesn’t currently exist?”

And then you can then design that product. But there is something else you can use to help you narrow down your niches, and that is guessing which niches you think will make the most money. Because, chances are, you can probably take a look at your list of ideas and identify which ones you think have the most customers and money potential.

And don’t worry, we will soon use actual research data to confirm if your suspicions are true. But for now, you can just guess. Because here is the thing about money. Even if you aren’t interested in a niche, if it makes you a lot of money, for many people, that can become a very strong motivator to quickly become an expert in it, even if they weren’t before.

So if you don’t have enough niches that you’re interested in, then money can be a great way to narrow them down.

And a third thing to consider is this: while researching, did you notice any niches that didn’t have a lot of good options? If so, that means that it could be a niche that is easier to have success in.

Because on, say, Etsy, a lot of people will say it is impossible to sell dog-themed products, because dogs are such a popular niche on Etsy, that it is too “saturated” for new products to succeed, but I personally think that is ridiculous. Dog products aren’t too saturated to compete in: they are just competitive. Because the customer base is so big, lots of people have come in and made dog mugs.

So that means that a lot of really great mugs themed around dogs out there exist. But if you were to come in, and make an awesome dog themed mug, then thanks to the Etsy New Product Boost, your dog mug could take off too. But it only will if it can match or beat the high quality mugs on Etsy.

Whereas, if you instead pick a niche with very few products in it, then that means that customers don’t have a lot of high quality products to pick from. So, from my experience, your design doesn’t have to be as amazing, or as clever to succeed, as it would need to in a more competitive niche which might not matter if you’re an amazing graphic artist, or an amazing artist. You might know that you have the skills to beat out the competition for competitive, big niches.

But if you would rather not have as much competition, then keep this in mind when narrowing down your 5 niches.

So then, narrow down your list to 5, and I’ll see you in the next video! 🙂
