How To Validate If A Niche Will Be Profitable Or Not?

After five years of trying and testing different models in the coaching business, in this podcast I want to share with you how to validate if a niche would be profitable or not. Because I've seen so many different niches. But what does it take to make it profitable? We'll get into that.

Hey there, Sidj here. Welcome to yet another episode of the Freedom Business podcast. And if you've not subscribed to me on Apple or Spotify, please make sure that you do that so that you get future episodes like this. Now let's talk about profitability. How do you know whether a niche is profitable or not? How do you validate and, and see whether it's going to be creating a lot of income or not? And for this I have developed a system where we need to validate five Ps or five different areas and I'm going to go deep into each area so that you can map it back to what we are doing and to see whether what topic that you have chosen has a potential to be profitable or not. The first area is you need to really have the passion in the subject, whatever you're teaching. And that passion usually comes from a past experience. It is not something that is, you know, manufactured newly. Meaning there are many people who pick a topic or a niche just because it's the hottest thing in the market right now. It's the hottest trend. But the problem with that is that that is very short lived because if somebody's a trend rider, they will only ride a trend for a short span of time and then they will look for the next trend after that. So unless the passion is there for a topic which is connected to your past and your childhood or some pattern from your childhood where you've been really interested in, in that topic or anything around that topic, unless you, you have that, your niche will not be profitable because after some time, in case your topic is not in your passion area, you will get bored after some time. And if you get bored, you'll not be able to put your energy into the whole thing. You will not be able to do so much of research on your topic if you don't have a passion. If you don't have passion, you also will not be able to, you know, go through the obstacles that you'll be facing. I was watching an interview by Steve Jobs, you know, that he had recorded many times back, many years back, and he says that if you're not obsessed with what you really like to do, there's a very high chance that you will switch to something Else. And that obsession and passion only comes when at a hard core level, at a really deep core level, you're able to connect with that particular subject. So the first.

Validation checkpoint is do you have the passion and obsession for the topic? Otherwise you'll get bored. The second checkpoint is that this passion should solve a problem. If your passion does not solve a problem, it is only a hobby. For example, if you have a passion in cooking and if you just want to cook, that's just a hobby. But if you have a passion and obsession in cooking, but you want to really put out different recipes and cuisines for other people to discover, and you want to, you know, charge people for that and give them the value, then there is a business opportunity over there. So your passion is solving a problem. Like in my case, I have a passion in teaching and coaching and helping people take their knowledge out to the world. And I'm also solving the money problem. On how you can monetize your knowledge. It's not because the passion and the problem are there. This is actually growing. The whole digital coaching business growing. And in my case, because it's connected to my backstory and my past story of being a college dropout and I don't have a degree next to my name. And in spite of that, I've been able to, you know, build one of the largest communities in this space. It really proves to the world that you don't have to be formally educated to be successful in a topic like this or, or even in life. So that was my thread, that the thread from my past that is inspiring me to do what I'm doing right now. So the first P is the passion, second P is the problem. The third P P is that you got to really target a particular Persona. If you're targeting a wide market, there is no way that that market is going to be responsive because if you're selling to everybody or selling to nobody, so your passion should solve a problem for a very specific target market. For example, one of my students, she's into European home baking and she's only catering to women who are interested in European home baking. And she's making 3 to 5 to 6 lakhs a month only in that one particular subject. Like this. I have another student who only teaches flute. He works in a top multinational company as senior, you know, in the senior roles, but on the weekends he teaches flute and he's making anywhere between 15 to 20, 25 lakhs per month teaching flute because it's a very specific topic that he's Teaching, It's a hobby type of a topic. But he's solving a problem. He's helping people learn songs on a flute. And a very specific target market who are inclined towards learning flute and learning the Indian traditional art form. He's not targeting any other style of music or anyone who's inclined towards other styles of music. So it is not just about targeting entrepreneurs or working professionals or women or mothers. It could also be a particular segment in society also. Like in this case, who have a passion in what you have a passion in. Okay. The best target market is somebody who's just like you, but just maybe two or three years behind somebody who has your values, somebody who has your kind of belief systems. And that's why when I started my campaigns, in the beginning, I targeted only my own city. When I was in Chennai, I was only targeting Bangalore and Chennai because I come from these two cities and I used to give those examples and people used to just buy because they could relate with me as a person that was a rapper that I could build. So that's the third P is you got to really connect with an audience and a specific audience. And that's the Persona. The fourth P is you need to pick a topic which has a potential in the market, meaning it should have a growth trajectory that is already there. For example, right now, AI and ChatGPT and anything to do with technology tools and digital and even the digital coaching space is going to become a $350 billion industry in the next few years. That's literally like a billion dollars a day industry. So I'm kind of riding the trend right now, but I'm also riding the trend equipped with the right knowledge and the strategies and skills. And that is why my business is growing, because there's a potential in the market. But the potential is also back to the passion and the problem solving and the Persona that I'm targeting, who are experts, coaches and teachers and trainers from, you know, from all over India. So the potential is very important because if your potential is not high, then then the fifth P would not be able to be fulfilled, which is payment. People will not be able to pay you unless they see value in what you're offering and unless they want to be a part of that trend as well. So this is not just about a trend, but it's about an upward trajectory in any industry, as you can see. Yeah. So if you see some of the booming industries in the world right now are, you know, in the training coaching industry, we have a lot of people who are in the, you know, crypto space, people who are in the blockchain space, people on the AI space. Like all of these are topics people want to learn marketing today. And if you go offbeat, there are other topics on content creation, on video creation, on media creation, on editing, on becoming an influencer, becoming a creator. And there are so many of these topics that are not typically taught in schools and colleges that people are willing to pay for when it comes to them building these skills. So ultimately, the profitability in the niche that you have chosen depends on all these five P's. Your passion should solve a problem targeting a particular Persona where there has to be a potential in the market and they should be willing to pay you for it. And not just small payments, they should also be able to pay higher amounts. And how would you know that is when you do your research, when you go and look around the market and you see that there are other people who are, you know, investing larger amounts of money in different courses and masterminds and products to solve the problem, then you would be having the confidence to charge the same or even start small and work your way up. I hope you found this podcast useful. If you're not a part of my community yet, I would highly recommend that you go to sidzsids co live and attend my next webinar. And if you don't want to attend the webinar but directly join my community, you can go to sidzsids Co join and directly join our community as a server member. But I'll help you put together these five P's into action and you can launch in our upcoming hackathon. And our hackathons are super fast and you get all the tools and the resources to make it happen. And if you're already a part of our community, especially if you're a silver or gold member, I would highly, highly recommend that you accelerate your success by upgrading yourself to Diamond. You can go to sidzsids Co Upgrade and you can upgrade yourself to the diamond membership and get certified. It is more of a certification program. Just imagine you're getting into like a Harvard, you know, business school. But of course this is more like a Harvard Business School, but only for digital coaching as a subject because you know, we have more than five years of case studies and models that have all been proven and some of India's top tenors and coaches are going through this diamond certification process. So jump into my diamond showcase. Learn how you can explore the 10 crore game plan. I'll be unveiling that game plan and of course, towards the end, I'm going to give you an opportunity to get yourself onboarded to our diamond certification process. With that being said, thank you so much. Catch you in the next episode and share your comments below. If you're listening to this on my blog.