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This is an important stage, not to be skipped, because you want to find out if this niche will be profitable for you. Plus you are entering the beginning stages of product research as well.
Remember, in this stage, you especially want to know…
Are other people passionate about your niche? If not, do they have a desperate problem they want to solve?
Is the market big enough, but not so big you’ll have too much competition when you’re just starting out?
Do the people in this niche spend money?
What products are being successfully sold right now to this niche? Can you sell something similar? Can you improve it, give them something they want that all other products of their kind are currently lacking?