OK i understand that you should do something you love, but how far should that go? Meaning, for example I love gadgets and software ( usually game related and entertainment etc). But for my startup I think I found a Market that has not really been tapped(lets say software for lawyers),although this is still software related, does it mean I shouldn't (not recommended) develop and sell such software because I have no particular interest in anything concerning law. Will choosing this niche be a bad idea?
Funny enough that's what most Internet marketers do, chase the niches with most potential, focusing on the process & execution instead on what you're selling.By thinking about how to become the best in the niche, we are able to keep going at it.
If you are not passionate about the niche, but you feel that it has potential, then I would say focus on the execution, something you should be able to feel passionate about.
A great example of this I would say is Zappos, they consider themselves a Customer Service company that happens to be selling shoes. You can adopt the same mentality if you feel that you can bring something to this niche and execute it in such a way that you will feel engaged by the process.
And trust me, there are niches no one is passionate about, but since they provide a service that helps the end user, you can derive passion from aiding this person.
I only know 3 kind of jobs in the world: Those that you're good at, those that you like and finally those that makes money.
If you try to stick only if those that you like, dude, you can end up doing something that you either is not good enough or don't pays your bills (or both)!
Your best course of action is to pick a job with the three characteristics at the same time. Its going to be hard, however. You won't find it quickly, so you may look at something with only one or two of them and slowly changing it to have all three. Entrepreneurship gives you more freedom to do exactly that.
Also, you probably won't be so good at this particular task when compared to others, or make so much money, or even consider it the "Best activity in the world". But its going to have a very good balance, something that the others lacks.
It depends on what your long term goals are. For example, a friend of mine loves food. He quit his job to go to chef school. He started an online business in the food and beverage industry. This isn't because it is a profitable niche (even if it may be so), but because he has a passion for it. His goal isn't go make a lot of money from this online venture. His goal is to aid his career and expose him to opportunities which he otherwise wouldn't come across. He considers this venture a stepping stone not a platform.
Another friend chose a niche that he has no interest in. He was really hyped and got a few others on board. They ones who had absolutely no interest in the niche left one by one. The ones that remained were focused on generating profit and the niche / product / service was secondary. It depends on the individual's personality, work habits, and motivation.
Personally I think its best to find one that is both, profitable and you have a passion for it. Idealism I know.. but many people start with their passion as a base and find opportunities from there. They may not (perhaps) make as much money as others going into more untapped niches, but thats a decision you have to make.