Why Does It Matter Which Niche I Choose for My Online Business?
When you are creative and full of ideas, picking just one thing to focus on can feel impossible.
You want to help everyone. Teach everything. Create it all.
I get it, because that was me too.
When I first started HomeMadeLovely, I was not thinking about niches or markets or ideal audiences. I just wanted to share what I loved. And it worked, for a while.
But as the internet grew noisier, and more blogs popped up talking about home decor and organization, it became clear:
Without a clear niche, if people cannot instantly tell what you are about, it is a lot harder to grow, serve, and sell.
Let us talk about why choosing a niche matters, and why it is not nearly as scary as it sounds.
A Niche Gives Your Business a Direction, Not a Prison
Choosing a niche is not about boxing yourself in forever.
It is about giving your audience a clear reason to choose you, and giving yourself a clear, focused starting point.
You can always evolve or expand later once you are established.
In fact, some of the biggest brands you know started with one simple thing before they grew into more.
Examples:
- Amazon
- Started with: Selling books online only
- Now: Sells everything from clothes to tech to groceries to cloud services (AWS)
- Instagram
- Started with: A simple app called “Burbn” for checking into locations (like Foursquare), but users mainly used it for photo sharing
- Pivoted to: Focus solely on photo sharing, eventually becoming Instagram as we know it
- Starbucks
- Started with: Selling fresh-roasted coffee beans, tea and spices from around the world in Seattle
- Pivoted to: Becoming a coffeehouse that sold brewed coffee, then expanded to a global cafe chain offering food, teas, seasonal products, music, and even branded home goods
- Apple
- Started with: Computers only (Apple I and Apple II)
- Now: Phones, tablets, music, services, TV, payments, wearables
- Jenna Kutcher
- Started with: Wedding photography (one-to-one service)
- Pivoted to: Personal brand, online courses, podcasting, business coaching, influencer marketing
See. Most successful brands did not start with “all the things.” They got known for one clear thing first, built trust and momentum, and then evolved.
Get good at and known for one thing first. Then pivot if you want to.
But if you try to be everything to everyone from day one, you will just end up overwhelmed and invisible.
Problem-Solving Versus Profit-Chasing: What Matters More
Here is the truth. Selling something that solves a real problem will always win.
But depending on what you sell, some niches are naturally easier to monetize.
- B2B (Business to Business) means selling to other business owners. These audiences usually move faster because you are helping them make or save money. Often, you can also charge more for B2B products and services, because other business owners see them as investments in their business.
- B2C (Business to Consumer) means selling to individuals and families. This can absolutely work, but it often requires more trust, nurturing, and creative offers. Depending on the problem you’re solving, the pricing for B2C products is usually lower.
Neither one is wrong.
You just need to know which path you are choosing and adjust your expectations and strategies accordingly.
Solving a real problem matters most.
But if that problem also makes or saves money for your audience, your path to profit might be a little faster.
You Can Make Money in Any Niche, but Some Paths Are Easier
You can make money in any niche. Honestly. There are businesses out there for everything!
Knitting. Baking. Gardening. Homeschooling. Organizing closets. Teaching calligraphy.
It is all possible.
But some niches come with more urgency, or with buyers who are ready to make a decision faster.
For example, a business coach who helps entrepreneurs make their first one thousand dollars is usually an easier sell than a blogger teaching people how to style their bookshelves.
It does not mean one is better than the other.
It just means one might take more time, creativity, and consistency to earn revenue.
Competition Is Not the Enemy, It Is a Clue
One of the best signs that a niche is profitable is that other people are already doing it.
If there are no competitors in your space, that is usually a red flag, not a hidden opportunity. (Although not always.)
When I started HomeMadeLovely, there were not a ton of home blogs yet. But within a few years, the space exploded. Suddenly, everyone was teaching decorating, organizing, DIY, and homemaking.
What I learned was this.
If your niche is more crowded, knowing what makes you different matters even more.
Your unique voice.
Your personal story.
Your approach and values.
These things are what help you stand out, even in a busy space.
How to Know If You Have Chosen the Right Niche for Now
You do not have to marry your niche forever.
But you do need to pick one you can commit to for a while.
Ask yourself:
- Does this excite me enough to talk about for the next two to five years?
If you are already bored just thinking about it, move on. - Can I clearly describe who I am helping and how I am helping them?
- Am I willing to put in the work even if it is slow at first?
You have to love it enough to keep showing up, especially when nobody is clapping yet.
Clarity comes from action, not endless planning.
Pick a niche you can fall in love with, and let it evolve over time if it needs to.
Ready to Go Deeper?
If you know you need a niche, but you are feeling stuck on how to actually choose one that fits your life, skills, and goals, that is exactly the kind of thing I help with inside my one-to-one coaching sessions.
Whether you have too many ideas or none at all, I will help you sort through the noise and map out a plan you can feel excited about.
Click here to learn more about coaching with me.
You do not have to figure it all out alone.
xo,
Shannon
P.S. After you choose your niche, it is time to decide how you are going to make money with it. Here’s how to choose the right business model to fit your goals.
