If you have a wonderful website idea, it is important to determine exactly how many other websites are out there on this topic. To do this, we need to check the supply (i.e. the number of webpages on the internet that already talk about this specific topic). Of course, if we find that there is 100 million sites about learning how to knit, we need to go back to square one and find a new topic.
To find this information, all we need is Google.com. Visit this site and type in our term from the example: Learn to Knit. Now you look at the blue bar towards the top right of the page, where it says "Showing results 1 - 10 of 931,000". This means that there is only 931,000 web pages on this term. It may seem like a lot, but this is pretty good. Because in reality, only a handful per million are quality sites. I have confidence that our knitting site can easily beat the others.
Repeat this process with our other term that we thought might work: Beginners Knitting. We see that this one only has 680,000 pages. Even better. With a little practice, you will naturally be able to judge whether or not the supply / demand ratio is in your favor. If there are 1,000 searches and 100,000,000 pages about this topic, that's not very good. But if there are 50,000 searches and 50,000 results, that is fantastic.
Again, spend a few minutes getting familiar with how to do this. Try some random searches and see how many results show up. Try "Real Estate", "Apple", your own name, or some obscure term and see how many/few results there are.
Note: Don't be shocked if there are millions of results. Google is scanning the entire internet for any page that contains your term, so obviously this is going to be a big number. However, only a fraction of these are quality sites dedicated to the topic. Those are the only ones you need to worry about.
Another Note: If the numbers you see are different than mine, don't be shocked. Google is always updating the number of results. So when I see 931,000 you may see more or less depending on the point in time.
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