One of the main reasons for the failure of startups is the choice of a niche without real demand. To build a sustainable business, it is important not just to come up with an innovation, but to find a profitable niche where there are paying customers and market potential. Let's look at the key steps to find such a niche.

Successful startups solve the specific pains of the audience. Define:

• What problems exist in different industries?
• What are businesses or users already paying for?
• How can existing solutions be improved?

Example: Slack appeared because corporate mail was overloaded, and existing messengers were not convenient for work.

Even if there is a problem, it is important to understand if the market is big enough.:

• Use Google Trends and search query analytics.
• Explore McKinsey, CB Insights, and Crunchbase reports on promising niches.
• Estimate the market size (TAM, SAM, SOM) – how much money is already spinning in this area?

🔹 Example: Fintech and AI startups continue to attract millions because the markets are huge and growing.

Competition is not a bad thing, but a sign of existing demand. Figure it out:

• Who is already working in this niche?
• What are their weaknesses?
• Where do unsatisfied customers stay?

🔹 Example: Notion successfully entered the niche of documents and notes, although Evernote was already there, but it offered convenient customization and collaboration.

It is important to understand how and how much you can earn in a niche.:

• Subscription (SaaS) is a stable income, but it is more difficult to attract the first customers.
• One–time purchase - attracts money faster, but without repeat payments.
• Marketplaces and commissions are good for platform solutions.
• B2B or B2C? – businesses pay more, but require long sales.

🔹 Example: Zoom has chosen the SaaS model, offering free access with restrictions and paid subscriptions for businesses.

Test your hypothesis before investing time and money.:

• Launch a landing page with a description of the product and collect applications.
• Conduct a survey among the target audience.
• Create an MVP, a minimally viable product.

🔹 Example: Dropbox first made a video demonstration of the concept, not the product itself. After a positive response, it began development.

Finding a profitable niche means finding new customers, testing demand, and testing monetization. Explore the market, competitors, test hypotheses – and your startup will have every chance of success!