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.