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is to choose a topic that you know a lot about and enjoy, I've always been saying this, And next is to do a lot of study on it. the best niches address a problem or answer a question for a large enough audience that you can profit from them.
Many marketers aim to be all things to all people, spending a lot of money on advertising to people who would never buy their products. Consider all of the TV commercials pushing things that only a small fraction of viewers will ever purchase.


Customers who can and will buy their product or service are targeted by niche marketers ( yes there is such thing as a niche marketer believe me I didn't know that last year) They understand that the best niches are those that solve problems and provide answers. They target their marketing efforts to the people who are most likely to purchase their product or service
Here's an Example Assume you're a professional dog trainer who wants to promote information about your training In a Google search, the broad market of dog care will give over 5 billion results. If you limit your search to dog training, you'll get 2.2 billion results. This remains a major market. Is there a particular breed of dog that you are particularly fond of? Consider the search term "training Labrador retriever," the most popular dog in the United States, which yields 26.7 million results. Let's take it a step farther. "Training a Labrador Retriever to Be a Guide Dog" is a Google search term (4.7 million results).

I really hope you get the point am trying to make here, If you want to start a business and you need a niche, Look at what you love, and then narrow down on it.
Don't do that thing exactly.
E.g Instead of broad fashion - Fashion for high school boys in their puberty
 
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