Do recent company layoffs have your head spinning? By 2027, it’s projected that 86.5 million people will freelance, making up more than half of the US Workforce. It’s time to learn or dust off those skills needed to flesh out a side hustle unattached to traditional employment. Where do you start?
If you’re exploring freelancing options or looking to break in and stand out in a competitive market, here are five approachable steps to help you lock down a profitable niche.
What is a niche?
Let’s start with a short and sweet definition of a niche: a business specialization based on the industry, your services, or the type or size of businesses you serve.
We can also consider a niche a distinct market like real estate or business-to-consumer. For example, a writer specializing in writing case studies (content type) for firms in the tech industry or a web developer offering services in Front-end development with WordPress for local, small businesses in the pet care industry. There are also sub-niches—a segmented market such as pet care, technology, and devices for dogs.
Why do I need a niche?
There are many long-term benefits to having a niche.
Here are a few:
- Spend less time researching your topic. We’ve all probably heard the saying that in business, time is money. When you know the industry, you spend less time researching and getting up to speed about the subject matter. You can complete the project faster.
- You have a connection to your client’s industry. Prospective clients are looking to hire people who follow the latest trends and understand the jargon specific to their industry. They know you can hit the ground running.
- Set higher rates for your expert knowledge on the topic. When you know the industry, you understand your client’s unique problems and goals. As an expert in your field, you can charge premium rates to craft solutions tailored to your client’s industry challenges.
- It’s easier to create and optimize your workflow(s). You can streamline your marketing strategy to find viable leads and prospect clients efficiently.
TLDR: In summary, a niche is profitable if there is a market demand and a budget to hire and pay you for your services. The worksheet referenced in this post is available for FREE download here.
Step 1 – Consider Your Hobbies and Interests
Listen, don’t discount your hobbies and interests during this research. It may give you insight into the type of clients and projects you’d enjoy working on.
Take a moment to think about your hobbies. Write down topics that interest you now. Also, list any topics you want to learn in the next six to 12 months.
Step 2 – Your Work and Volunteer Experience
List your work and volunteer experience and what you know about that industry. You can build on your industry knowledge by tapping into your network and connections to find freelance opportunities. If you need to learn or brush up on your trade or industry knowledge, Web Wire Trade maintains a list of trade publications by industry.
Step 3 – Assess Your Skills and Knowledge
Now, jot down your skills and knowledge. What?! I like writing lists; when I’m not writing lists, I like making others write a list. Because when you write it down, shit gets done! Making immaterial, material, one list at a time.
If you need ideas, check out Career One Stop and take their skills matcher assessment. The assessment usually has 30 questions and takes about 10 minutes to complete.
So, now you have written down all the skills and experience you’ve acquired on the job or from your volunteer work. As well as your hobbies and any topics/subjects you’d be willing to learn about in the next several months to a year.
Step 4 – Know your freelance service
Next, decide what services you’ll provide as a freelancer or business owner. Your skills and job experience may transfer to the freelance world.
It may be worth looking into a Career Aptitude test, as self-awareness may help you choose a freelance service that is more likely to bring you fulfillment. Indeed’s 8 Free Career Aptitude Tests for Adults is a terrific article summarizing how the Aptitude tests work. Just note that some career and skills assessments may not be scientifically proven.
When your knowledge, work experience, and interests meet, you’ll find your freelance service.
Step 5 – Determine if a niche is viable
And finally, determine if there is demand for your desired work. Search for job boards in your field. This method is helpful for quickly measuring whether or not there’s demand for service.
Though there are hundreds (wait, thousands? What are numbers?!) of job websites and listings, Indeed.com is the largest job site in the world. It has free and premium features and is still (relatively) easy to use and navigate. You don’t need an account for the type of search we are doing on this site, though.
So, let’s say, for example, you’re looking for work as a remote “web developer” on Indeed. We can use the filter to display only the jobs posted within the last 14 days, and it looks like search results for over 400+ jobs. And since businesses are posting help-wanted ads for remote web developers, we know there is some demand for work in that field.
In this example, we determined that there is demand for companies looking to hire web developers. We can use Fidelity as a resource for information about industry revenue.
Conclusion
We know a niche can be defined as a segment of the market. What makes a niche profitable?
In summary, a niche is profitable if there is a market demand and a budget to hire and pay you for your services.
Finding a profitable niche is a work in progress for many people – and that’s okay. Markets can change drastically, as we’ve seen in recent years.
The critical thing to remember is not to let finding a niche lead to procrastination when moving forward with your freelancing goals.
Don’t be afraid to think outside the box and explore different niches. Keep your notes to reevaluate and explore as you progress through your freelancing journey. You might strike gold and uncover your next big opportunity.
Is this the year you start your freelance business? How did you find your niche, or did it find you?
