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How To Identify Business Opportunities

If there is one aspect that defines the entrepreneur, be it the brave who is mounting a startup or the one who launches new lines of business in a consolidated company, it is his ability to identify new business opportunities and above all, to go further and get To work to take advantage of them … but how to do it? What options are there? This article will discuss some of the ways to identify ideas or business opportunities that entrepreneurs can pursue.

Find Possible Clients

The basis for creating and leveraging a customer niche is to identify a group of customers whose needs are only partially solved, for example, although they can cover the basis of their problem, they are not happy with how their specific needs are met. Similarly, there are customers who consider that the current market offer is “excessive” for what they need, and would be happier with a cheaper offer but with better prices such as with low-cost airlines.

Find a way to provide more efficient service or product

Look for aspects in the markets that can be improved and allow customers to take better advantage of their products or services. This means, for example, increasing the information available to the customer to make better decisions, making it easier to obtain a product or service by improving access, optimizing processes to make the relationship faster, etc. In other words, fixing something on the market that we think does not work well enough.

Look for a New Type or Group of Consumers

New customer segments appear periodically, either because there are changes in demographics such as increased population, new social classes or simply because a segment that was not representative becomes important, for example, classes without access to certain products that have seen a great improvement in their economic situation in recent years. Recognizing their existence and analyzing their specific needs is often a good starting point for the new business.

Search for Unresolved Frustrations

This is arguably one of the most powerful elements for identifying viable businesses. This doesn’t only refer to special “needs” but to day-to-day aspects that make a customer frustrated. What differentiates a need from frustration is their level of intensity, the greater the frustration, the more likely the customer will be willing to pay. The best way to identify these frustrations is through personal experience or that of someone close to you who suffers from such frustration.

New Opportunities or Products

One of the elements that quickly transforms markets is the emergence of a new technology. A good analysis will show dozens of opportunities that can accompany it. This has happened with products like the iPad which has led to new educational, health, entertainment or professional uses or GPS technology that beyond navigation has revolutionized for example the world of sports.

New Legislation or Policy

The emergence or disappearance of regulations, laws or policies usually promotes of a large number of products and services, for example, mandatory vaccination which create a demand for a huge number of vaccines. Hundreds of products will be required to serve certain regulations such as personal data protection or regulatory changes in the field of photovoltaic energy are good examples. Entrepreneurs need to be very attentive to the appearance of new regulations and react very quickly once they are launched.

Understanding Consumer Needs

The marketing is a set of activities to meet the needs and desires of the markets but also individual customers. There are many definitions of marketing, but many of them take this into account. For example, Philip Kotler says that “marketing is a social and administrative process by which groups and individuals obtain what they need and desire through generating, exchanging and offering valuable products with their peers.

Types of Customer Needs

The needs may be related to the basic satisfactions, although they may also have to do with more specific satisfactions. Not all needs have to be the elementals for subsistence.

The needs can also be specific, unspecific and unrealizable. An example of concrete needs is if a person is thirsty you can give him drink, if he is hungry you can give him food, these are specific needs, while the abstract are for people with intangible desires. Such needs can be emotional such as happiness, love, affection, etc. People’s need for security is also an intangible desire. The unrealizable are those that are impossible to satisfy, such as immortality, superpowers, and others.

Concrete needs are the easiest to satisfy, while abstract can be offered through exclusivity and luxury. Insurance and third party warranty also satisfy people’s need for security by providing customers assurance that they will be taken care of in case something unfortunate happens to their health, job and property. Unrealizable ones are often related to pseudoscience and mysticism.

The Maslow pyramid also helps to understand the needs of the market because it deals with the basic psychology of human needs. Since it is a pyramid with a base of basic needs and will rise up to additional needs, it will be easier to understand or visualize the hierarchy of human necessities.

In order to satisfy the customers’ needs, it is necessary to know the consumer’s behavior or their needs, so that studies must be carried out with this objective and the marketing strategies must be designed according to the objectives pursued, that is, Clients to achieve greater goals within the company.

The behavior of the customer, who consumes, buys or uses a product or service must be studied. A knowledge about consumer’s behavior is advantageous to any entrepreneurs because he knows what a customer is going to do, what he wants, what he needs, what he will buy, and what desire or need is not being satisfied. The consumer should be the most important point to consider in marketing strategies, knowing what to buy, who buys, how to buy, why to buy, when to buy, where to buy, how much to buy and how to use it. Based on this, the pertinent studies are made to know their specific needs and how to satisfy them.

 

How To Create Market Demands

No matter how big the consumer consumption, the gaps remain that separate what consumers really want from the goods and services that they receive. Such gaps represent opportunities for the creation of new demand.

Good businessmen are creators of demand. They reimagine the reality and then rework it. The result of that process is that they end up engineering products that customers cannot resist and that the competition cannot copy. This process entails taking several steps that all the great creators of demand follow.

Create Attraction

When it comes to creating demand, it is not the first speaker who wins. The victor is the first one to create and capture the emotional space of the market.

Look for Flaws

Most of the products available are imperfect and generate drawbacks. It is very rare that consumers enjoy everything they want or have a perfect customer experience. Make the service more simple but with more options, provide greater automation but at the same time personalized service, give better quality but lower prices. That’s where the demand creator creates enormous opportunities.

Consider all background

The things we do not see can make or destroy a product. As long as the whole context and all background are not clearly constituted, the demand simply does not occur. Demand creators connect all the points needed to map the client’s drawbacks.

Find the Detonators

The biggest obstacles to creating demands are inertia, skepticism, habit, and indifference. Although often even the best companies take years to find the detonators indicated. The great creators of demand no longer waste time experimenting with this and that. They provide what is needed to gain undecided customers.

Project a Path of Improvement

The launch of a product is nothing more than the first step in a series of attacks against market indifference. On the very day of the launch, the great creators of demand jump to the next phase with a simple question:  “How fast can we make ourselves better?” They know that any improvement they make whether technical or emotional will open up new layers of demand and will close spaces to the opportunistic imitations of the competition.

Consider Every Customer’s Needs

It is to look for efficient and cost-effective ways to create product variations that best fit the changing needs of different types of customers discarding surplus (which we do not want) and gaps (gaps we want to fill). Every customer is different and it is difficult to provide different options and product variations that will perfectly meet the individual needs. The great creators of demand are constantly improving between 60% and 90%, adjusting their product against different types of customers.

The process of demand generation gives entrepreneurs an advantage by being able to provide product or service that consumers will be genuinely interested in buying.