Start out by using search engines for your research. Many search engines provide reports on the popularity of certain search terms. The relative popularity of a particular term is a good indication of whether or not there is an interest in a certain niche.

Next enter these terms into search engines to evaluate the direct competition. This will give you a good idea of how the competition is marketing their products and services. You can use this valuable information to expand upon their ideas and tailor their marketing strategy to meet your needs.

Googles Keyword tool is a great resource for keyword research:

https://adwords.google.com/select/KeywordToolExternal

One great tool that automates the entire process:

http://ds.exoon.com/kwelite.html

James Jones - Micro Niche Finder

Micro Niche Finder is a powerful new software tool. It helps you to uncover hot untapped niche markets that have been completely and utterly overlooked by the masses and allows you to simply swoop in to the niche and dominate these niche markets in Google and other search engines such as Yahoo or MSN!”

My friend James Jones has just filmed 5 videos that show you 5 different ways anyone can profit from little known Under-the-Radar niche markets using Micro Niche Finder.

You can check them out on his website at: Micro Niche Finder