The riches are in the niches, but how do you find your niche?
Today we’re sharing simple exercises and frameworks to help you find a side hustle niche that fits you. There’s a lot of stress around picking the “right” thing, but we’re going to make this easier.
You want to pick a place to play where you can thrive and get excited to show up.
And that word “play” is important — when you look at it as a game, it’s more fun. When your first idea doesn’t work (and it might not), you can tell yourself “it’s just a game.”
Listen to Episode 683 of the Side Hustle Show to learn:
- The sweet spot formula for finding your perfect niche
- How to turn your unfair advantages into business ideas
- Why “best/worst/only” beats trying to serve everyone
- Simple exercises to discover what you should focus on
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The Sweet Spot Formula
Most successful side hustles happen when you find the sweet spot between your skills, interests, and what people will pay for.
You might know the Japanese word “ikigai” — it means your “reason for being.” Your ikigai sits where four things meet:
- What you love
- What you’re good at
- What you can get paid for
- What the world needs
Real examples:
- Bryan Orr had HVAC experience and loved training people. He started the HVAC School podcast, which became super successful.
- Garrett Brown knew hospitality and real estate. He created a profitable glamping site outside Houston.
- Debbie Gartner understood SEO and loved making games. She makes about $1,000 a week selling printable games on Etsy.
Know Yourself First – Simple Questions
Before you look outward, you need to look inward. Ask yourself these questions:
Skills Inventory:
- What do you like to do?
- If money were no object, how would you spend your time?
- What lights you up?
- What do you never get tired of talking about?
- What do other people ask you for help with?
- What comes naturally to you that others struggle with?
- What do other people seem to irrationally suck at?
This is the origin story of The Side Hustle Show. I’d already started a few businesses and quit my job, loved talking about business ideas, and was curious about different side hustles.
Your Unfair Advantages
No one starts from scratch. You bring your own history, perspective, and advantages to any side hustle.
An unfair advantage is anything you can use to get started, stay started, and connect with customers. It could be:
- A new technology or invention
- Being first to market
- A personality trait like persistence
But where the magic often happens is when you combine two or more traits.
Scott Adams’ approach: The creator of Dilbert said he was better than average at drawing and funnier than most people. He combined those two advantages to create one of the most successful comic strips ever.
Your turn: What few things are you better than average at? How can you combine them?
Looking Outward – Finding Problems to Solve
Your skills need to match up with problems people will pay to solve. Here’s how to find those problems:
Ask business owners:
- What’s the biggest challenge facing your industry over the next 5 years?
- What does a typical day look like for you?
- What’s the most frustrating or time-consuming part of your business?
Look at your own life:
- What problems have you overcome?
- Check your credit card statement – what takes up big chunks of your expenses?
- Could you create a better alternative?
Use AI for Brainstorming
Armed with the answers to your introspective questions, you can ask ChatGPT for side hustle ideas.
The more detailed you can be, the better responses you’ll get.
For example, I prompted: “I’m looking for side hustle ideas. I like skiing and college football. I have 2 young kids and want to be present on weekends. I have experience in content marketing, podcasting, and automotive. People ask me for advice on email marketing and travel hacks.”
And it came back with some decent suggestions!
The responses won’t be perfect, but they’re a good starting point.
Solve Your Own Problem
Noah Kagan says novelty is overrated. It’s better to solve your own problem because:
- It’s more interesting to you
- It’s more sustainable
- You already know the pain points
Don’t worry if someone else is doing it. How many Mexican restaurants are in your town? Probably several, and more than one makes money.
If there’s someone else doing it and you’re not using them, there’s probably room for you too.
You don’t need a never-before-seen idea. You just need to make it your own.
Finding Your Strengths
If you don’t know what you’re good at, try these approaches:
1. The Last 6 Months Exercise
What have you done that you felt best working on? What would you work on for free? When do you wake up early or stay up late because you’re excited?
2. Ask a Friend
Text someone who knows you well: “If I were to start a business, what kind should I start?” Friends often have better perspective on your strengths than you do.
3. Consider Professional Help
Finally, Noah mentioned that therapy can help you understand what you want and what you like to do.
Best/Worst/Only: Becoming a Market of One
If you can’t be first, be different. Create your own category by:
- Serving a specific type of customer
- Using unique branding and positioning
- Focusing on a particular problem or solution
John Lee Dumas says it’s impossible to be too niche. Most people go too broad because they’re scared and want to serve everyone.
The winning formula: Create the best solution to a real problem for a specific group.
JLD’s example: When he started Entrepreneurs on Fire, he was:
- The best daily interview podcast for entrepreneurs
- The worst daily interview podcast for entrepreneurs
- The only daily interview podcast for entrepreneurs
Another great example: April Whitney runs a fitness business specifically for women 5’4″ and shorter. She purposely excludes taller women. When petite women find her content, it resonates perfectly because she speaks exactly to them.
Hannah Morgan from Heron House Management could have started a general virtual assistant service. Instead, she went niche: “Hey busy parents, let us handle your to-do list and carry your mental load.”
Your Next Steps
These exercises should give you several potential side hustle ideas. But options don’t pay bills – you need to pick one and take action.
Coming next week: 10 questions to help you narrow your focus and objectively pick the best idea.
Hit the follow button in your podcast app so you don’t miss it.
Key Takeaways
- Find your sweet spot where skills, interests, and market demand meet
- Use your unfair advantages – combine things you’re better than average at
- Solve problems people pay for – look at your own credit card for validation
- Don’t fear competition – there’s room for multiple players in most markets
- Go niche to win – better to be the only than to fight for scraps
- Ask friends for perspective – they often see your strengths better than you do
The goal isn’t to find the perfect idea immediately. It’s to find a good place to start experimenting and learning.
Episode Links
- HVAC School Podcast
- Bryan Orr on The Side Hustle Show
- The 22 Immutable Laws of Marketing
- Debbie Gartner on The Side Hustle Show
- Noah Kagan – Episode 237
- Entrepreneurs on Fire
- April Whitney on The Side Hustle Show
- Heron House Management
- Blademir Hernandez – Episode 522
Looking for More Side Hustle Help?
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- Download The Side Hustle Show. My free podcast shares how to make extra money with actionable weekly episodes.
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