6 Questions to Validate Your Consulting Niche

4 minutes to read

"Just follow your passion!" they said.

Yeah, right.

I've watched too many talented professionals burn out chasing that empty advice. They dive into consulting with dreams of freedom and impact, only to end up with a calendar full of "let me think about it" calls and clients who haggle over every invoice.

Here's what nobody tells you: Your success as a consultant isn't about passion—it's about being in the right market.

Pick the wrong niche, and you'll work twice as hard for half the money. Pick the right one, and success becomes almost inevitable.

Today, I'm going to show you exactly how to choose a profitable consulting niche. No fluff, no "follow your heart" nonsense. Just a practical framework that works.

The Consulting Success Formula

Before we dive in, let's break down the formula that drives every profitable consulting business:

• Niche (Who you serve)
• Problem (What pain they have)
• Solution (How you help)
• Offer (How you package your value)
• Price (What you charge)

N + P + S + O + P = Your Consulting Business Foundation

Seems straightforward, right?

But here's where most people crash and burn: they skip the first step.

They're so eager to start consulting that they never validate their niche. Big mistake.

The Money-Making Truth

Let's get real about making money.

Money is just an exchange. When you take money out of the market—whether through consulting, services, or products—you need to give something valuable in return.

But what makes something valuable? Simple: it solves pain.

Think about it. Every transaction in your life happens because someone is solving a problem:

• That morning coffee? Solving your brain fog.
• Netflix subscription? Curing your boredom.
• Business consultant? Fixing costly inefficiencies.

The bigger and more urgent the problem, the more people will pay to solve it. That's not just business theory—that's human nature.

Pick the Right Boat

Warren Buffett nailed it when he said: "It doesn't matter how hard you row, it matters what boat you're in."

Picture two consultants:

Consultant A picked a growing market with urgent problems and money to spend. They're in a sleek speedboat, gliding toward success with minimal effort.

Consultant B chose a shrinking market where nobody can afford help. They're in a leaky rowboat, exhausted from paddling but barely moving.

Same effort. Wildly different results.

The Six-Point Niche Validation Test

Now that we've covered how money is made and why market selection matters, it's time to narrow down your niche.

A strong niche must pass six key traits. Miss even one, and you're setting yourself up for struggle.

1. Is the Niche Growing?

Remember Blockbuster? Great company, dying market. Don't be Blockbuster.

Look for expanding industries where new opportunities are constantly emerging. The rising tide lifts all boats:

✅ AI-powered business tools (exploding growth)
❌ Traditional print media (steady decline)

2. Is the Niche Financially Viable?

This seems obvious, but you'd be surprised how many consultants target broke audiences:

• Struggling artists? Noble cause, empty wallets.
• Corporate teams with budget authority? Now we're talking.

Think of it like drilling for oil: You need to dig where the reserves are. No smart oil company wastes time drilling in empty fields...

And you shouldn't waste time chasing clients who can't afford you.

3. Does the Niche Have Pain?

Here's a secret: people don't pay to solve mild inconveniences. They pay to solve problems that threaten their identity or livelihood.

Compare:

• A SaaS start-up wanting to refresh their onboarding emails
• An enterprise software company losing millions to churn due to poor customer onboarding

Who's more likely to invest in consulting services? The enterprise company—because their revenue depends on it.

4. Is the Niche Big Enough? (30,000+ Rule)

You need at least 30,000 potential clients in your niche. Any smaller and you'll:

• Struggle to reach enough people
• Hit scaling walls
• Run out of customers

Think big enough to grow, but specific enough to dominate.

5. Is There Competition? (Yes, Really)

No competition usually means no market. Think of it like a pond:

• Pond with fish = Healthy ecosystem
• Empty pond = Nothing can survive there

When you see successful competitors, celebrate. They've proven people will pay for solutions.

6. Can You Easily Reach Them? (Targetability Test)

The perfect market means nothing if you can't connect with them. Your ideal clients need to be:

1. Findable (active online or in networks)
2. Targetable (through ads or content)
3. Accessible (you can get their contact info)

Even if a market is great on paper, you need to be able to reach your audience effectively.

The Bottom Line

A profitable niche must pass all six of these:

✅ Is the market growing? (More people joining = more opportunities)
✅ Is there urgent pain? (People need real solutions)
✅ Do they have money? (Broke markets = no business)
✅ Is the audience big enough? (At least 30,000+ clients)
✅ Is there competition? (No competition = no demand)
✅ Can you easily reach them? (Are they online? Can you find their contact info?)

Be ruthless. If it fails even ONE, move on.

Remember: A bad niche forces you to work harder for less. A great niche makes success almost inevitable.

Next week, I'll show you exactly how to research your chosen niche and validate your assumptions with real data.

But for now, focus on picking a niche that that checks all the boxes.

Your future self will thank you for doing this work up front.