You need to make sure you have enough people to market to in whatever area you decide to go after. These places will help to identify if you have a topic worth taking the time to fight after.
The biggest thing you need to do is make sure that your competition is improving on their revenue. In order to figure this out you need to go to Google Adwords Keyword Tool and use this as a barometer for your niche. It will give you a universal feel of what the market looks like and although it might not help as much with an offline business, it is still a good way to read your interest.
Go to Google Adwords and use the free keyword tool that they provide. This is a great way to figure out exactly how many people are searching monthly for your targeted keyword. Next I would look to see how many searches and if it is over 100,000 then you are probably going to be in a big enough market to get started.
Second check out the bids for those items on the average cost per click option on the side. This will give you a good idea as far as what companies are paying and how competitive it is. An average big will give you more of a realistic idea.
You want to see how many sponsored links are showing up for your keyword when you type it into Google Search on the top and side of the search results. The more the better for you because that means that more people see money opportunities in that field. If you are seeing at least 10 then that is a great sign.
I would follow that up by going to a library or book store and seeing how many books are being offered on a topic. If I see rows on a topic then I know that it is going to be a worthwhile market to go after. If I see a couple books then I would probably turn away from that topic.
It is fine if you start big because there are always markets to be focusing on where you can be successful in within that large market. After time you are going to be able to narrow down on niches and really figure out what your ideal client will want.
So check these steps out first and see what benefits they have to giving you a good idea of your market size. Then move forward to either shrinking or enlarging your pool.
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