Business X-Ray

Chapter 2. Choosing a Niche: Forensic Analysis, Not Intuition

Chapter 2. Choosing a Niche: Forensic Analysis, Not Intuition

Most beginners assume that choosing a niche is a matter of taste. "I like this product," "It’s trending right now," "I saw it selling well."
These arguments may sound logical, but they have little to do with running a business.

A niche is not a product or a category. A niche is a sustainable model of demand, competition, and margin that exists independently of your store. And this is exactly what most people fail to verify.

A common mistake is substituting analysis with observation. A beginner sees an ad, an Instagram store, or a polished website and concludes: “There’s money here.”
But market visibility alone does not indicate profitability or the viability of the model.

A forensic approach starts with a simple question: Why has this niche not died yet?
If a niche has existed for years, it means:

  • There is recurring demand,

  • Market participants have found ways to make money,

  • Competition does not completely erode margins.

If a niche has emerged in the last 6–12 months, the risk is different: you cannot predict what will happen when:

  • Advertising costs rise,

  • Suppliers increase prices,

  • Customers saturate on the product.

Beginners almost always gravitate toward the second type of niche because it looks more attractive. There’s more noise, more success stories, more promises. But it is precisely in these niches that resilience is often lacking.

Another critical mistake is evaluating a niche based on a single store. One successful store proves nothing. It may:

  • Operate at a loss to drive volume,

  • Be part of a larger ecosystem,

  • Offset losses through other channels.

Forensic analysis requires looking beyond the storefront and examining market behavior:

  • How many stores in the niche actively update their assortment,

  • How often prices change,

  • How many products disappear within 1–2 months,

  • Whether constant sales are the norm rather than an exception.

A niche where most sales rely on perpetual discounts is a warning sign. A niche where products frequently appear and disappear is also a warning sign. A niche with a large assortment but minimal real change sends yet another signal.

Intuition is useless here. It does not reveal the structure. And it is the structure that determines whether you can:

  • Maintain margins,

  • Test new products,

  • Scale without constant stopgaps.

At IceStoreGroup, we deliberately do not start with the question “What should we sell?”
We start with “Where does it even make sense to try to earn?” These are entirely different entry points — and this is where most beginners take their first, and most costly, misstep.

Choosing a niche is not about inspiration or trends. It is a cold, calculated decision based on market behavior, not other people’s promises.

→  Continuation

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Chapter 1. The Illusion of an Easy Start
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Chapter 3. Competitors — Not Enemies, but a Source of Truth