You’ve heard it time and time again, “You’ve got to find a niche!”.
You’re told to pick niche markets because they have lower competition. In this low competition is the opportunity to stand out. In essence, you’re not in a market dominated by businesses with insane budgets.
The problem:
Just because you choose a niche doesn’t mean you’ll make money. In fact, you could corner yourself, do a ton of hard work, and come out empty handed.
The solution:
You need to find a balance between low competition and high-profit margins. This balance lets you maximize each sale you create. So, you won’t need a million visitors buying tons of things — you need only a few, making big purchases.
This article explores a sample of low competition, high-profit niche markets and industries. Select one for a niche business idea and you could see insane returns.
First, Understand What You’re Looking For
A big list of niche markets won’t do you good if you don’t understand why they’re on there. Let’s start this with the “what” and “why” of low comp, high-profits.
What Low Competition Means
Most niche business ideas, like any modern business, relies on a website. A website ranking at the top of Google for their keywords will do well.
Keywords tend to fall into two categories:
- Broad
- Long-tail
Broad keywords are those you probably won’t rank for. The niche is too hard because companies dominate this space with billion-dollar budgets.
Long-tail keywords get you close to where you need to be. The keyword volume isn’t as high but it carries a different intent.
Consider these when doing the research:
- Keyword volume: ~1,000 to ~10,000
- 1st page of Google is full of “thin” product or content pages
Need help starting this? See our quick guide on researching keywords.
What High-Profit Margins Mean
You have two options:
- Make a ton of sales selling low-priced items
- Make a few sales selling high priced items
You’ll find it difficult making enough money selling phone cases, for example. Compare this to these engines which go for tens of thousands of dollars. The engine example is high-profit margins, a single sale would be huge!
Combining the Two and Finding a Median
You’ll want to fall somewhere in the middle:
- A good keyword volume (1,000 to 10,000 searches a month)
- An in-demand product with big sales potential ($1,000 to $10,000)
You’ll then look at the competition and see who’s doing well. And, apply great SEO and marketing strategies to outrank them for the primary terms. Later, you’ll reinvest capital to increase growth, becoming a major market player.
Low Comp, High Profits: The Best Niche Markets
You now know the factors behind the low competition. You also know what counts as a high-profit margin. Let’s now jump into a dozen+ ideas worth exploring that meat our criteria.
1. Health
Health is broad but breaks down into several, amazing opportunities:
- Healthy food, recipes, and meal kits
- Exercise, equipment, and gym memberships
- Medicines, remedies, and home solutions
One could release profitable information guides or supplements. Or, personal coaching or doctor referrals. People pay big money to stay healthy and willing to try many things to achieve wellness.
2. Fitness
Fitness overlaps with health but has its own set of profitable markets, like:
- Vegetarian and vegan lifestyles
- Farm-to-table and organic diets
- Keto and low-carb foods
You also have the routines, equipment, and coaching involved in fitness. One could provide these services and items. Or, direct people where they can find and buy them — it’s a great niche if you’re into affiliate marketing.
3. Music
Music starts broad but goes niche quite fast:
- Musical genres
- Instruments
- Events & concerts
- Production
- Promotions
Further dive into each through sub-genres that seem to pop up overnight. The deeper you go, the less competition you’ll find. Yet, you’ll still find people willing to pay well for guidance, coaching, resources, and more.
4. Relationships
Get your ex back? Repair your marriage? Build business connections?
Each example in the relationship niche has high-profit margins. The competition is also high so think how these could break off — like:
- Geo-location
- Sexuality
- Age
- Wealth
Take the relationship local or find that unique similarity in your age group and type. You’ll be amazed at what people will spend to save their relationship.
5. PC Gaming
PC gaming is blowing up and with it comes several opportunities:
- PC parts
- Video games
- Accessories
- E-sports
We’re seeing a boom in PC gaming popularity. There are rabid fans for gaming publishers, devs, and even part manufacturers. Try exploring this niche through reviews, guides, or streaming.
6. Drones
The cost of getting into drones is somewhat high. Once people are hooked, they turn this hobby into a big investment between gear and training.
There are a lot of sub-niches to explore — like:
- Drone photography
- Drone video
- Drones for marketing
And, within each, are opportunities with coaching, training materials, and parts.
7. Finance
Finance, as expected, thrives on money. Fintech, investing, and credit repair is truly profitable. One could explore loans, credit cards, and financial solutions.
Have a background in finance? This puts you in an advantageous position with those in the industry. You’ll also find great opportunity in personal finance.
Niche down further exploring low-income solutions. Or, cater to the 1% by covering topics like gold, mutual funds, and forex trading.
8. Business Solutions
When you think business solutions — think:
- Accounting
- Customer service
- Advertising
- Marketing
…and anything else a business may need to operate.
Small to large, businesses invest in essential tools and resources to make more money. Or, to increase their output and labor. Delve into what you know about business and consider coding a software solution.
9. Pets
Over 85 million families own pets in the United States. Pet ownership is surprisingly expensive between food, activities, and care. Plus, many owners treat their pets as literal family members, their “fur babies”.
Profitable ideas range from subscription pet items to training. Aim for designer pets and things like professional grooming to find higher margins.
10. Self-Improvement
Self-improvement is like health in which most want to improve their wellbeing.
Self-improvement may come from psychological or physical improvements. There are opportunities in coaching, training, and wellness products.
You can go further based on client demographics, location, relation, and more.
11. Business Opportunities
You’re reading this article because you’re interested in entrepreneurship. Think meta and you’ll have a million ideas with business opportunities.
Low comp, high-profit ideas could include:
- Email marketing training for non-profits in Boston
- Lawn maintenance franchises for Central Florida entrepreneurs
- Real estate investing for mid-west, foreclosed homes
People want to make money, plain-and-simple. Figure out what people want to try and you’ll make money on the training, tools, and resources. Often, a prospect will buy into all three of these categories.
12. Fashion
Fashion is broad so let’s dig deeper:
- Contemporary office fashion
- DIY fashion using homemade yarn
- Avant-garde maternity fashion
Throughout each, you’ll find the need for materials and training. Or, you could introduce people to events, biz ops, and marketing. The high profits will likely come through fashion materials, brands, and/or self-promotion.
13. Beauty
Beauty gets lumped with fashion as the two go hand-in-hand.
Beauty is subjective. This makes it possible to carve a niche no matter your style, looks, and personality. Get a YT channel going and you’re bound to get followers hanging onto every review and guide.
Beauty products are dirt cheap to manufacturer but carry amazing profit margins. Try white-labeling beauty products or developing one of your own. Or, work with big brands through partnerships and wholesale.
One Challenge Down, Many More to Go
Narrowing your selection of niche markets kickstarts the startup strategy. Yet, your market research is one of several challenges ahead. There’s still funding, site building, marketing, and so much more.
What can you do? Explore the many ways to starting (and growing) your biz.
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