How do entrepreneurs recognize new business opportunities?
One of the characteristics that distinguish entrepreneurs from non-founders is their ability to spot new business opportunities quickly. They have a flair for spotting market gaps and filling them with cutting-edge products and services. Every gap that an entrepreneur notices is usually a sign of a business opportunity worth examining and exploiting.
When entrepreneurs decide to establish a new business, they often go through multiple stages. The first and most essential of which is coming up with a viable concept. Some entrepreneurs have ideas running through their thoughts for years before putting them into action. Others may find themselves looking for inspiration when a business opportunity arises. Both groups must discern new business opportunities and the best means to put them into action.
How to Recognize New Business Opportunities
The ability to turn ordinary ideas into marketable products or services separates an ordinary idea from an outstanding one. What this implies is that not every good idea is a great one. To be successful entrepreneurs, we must always innovate and look for new ways to expand our businesses.
But where do you look for new markets and development prospects for your startup? Here are five ways you can identify new business opportunities, as a seasoned entrepreneur today:
Listen to your Target Audience and Customers.
Successful entrepreneurs understand the best ways to listen to their prospects and customers. Knowing what your current customers say about your industry, products, and services makes spotting new business opportunities easy.
What are some of the most commonly asked questions? Experiences? Frustrations? Have they used similar products and services? What did they enjoy, and what did they despise?
Some years back, PayPal discovered that shoppers in the Gulf preferred smartphones to computers/tablets when shopping outside their homes. According to the report, mobile transactions in the Arab world were expected to expand from about 10% to 20% by 2015. This data demonstrated that there would be a rise in mobile shopping in Arab nations. Smart entrepreneurs seized this opportunity to develop incredible smartphone applications for purchases from large local retailers.
Listening to your customers is something you should do regularly. It gives you insight into their needs, how to serve them, and the best prices. You should then follow up on these thoughts by asking yourself several questions. Some of these questions include
- Are the market statistics real?
- Is this a genuine product or service?
- Can I win?
- What are the potential dangers?
- Is it worth it?”
Your answers to these questions would assist you in identifying new business opportunities to improve your current products and services.
Look at Your Competitors
Do some competitive analysis (but don’t let it paralyze you) to examine what other startups are doing. Also, consider what they aren’t doing as this is even more crucial. Where are they collapsing? What exactly are they doing correctly? Why do customers prefer them to you?
Consider who else is in the market and what they’re doing to help customers. Are they offering a comparable equivalent product or service to what you’re looking for? That is the second thing you must establish. By doing so, you can comprehend the unmet demands better. It also allows you to focus on the price points and feature points to stand out in the industry.
Analyzing your competition will assist you in identifying key business possibilities to broaden your market reach. It also helps to improve your products and services.
Observe Industry Trends and Insights
Subscribe to trade journals and join relevant organizations. Set up Google alerts for key industry phrases and news, and follow other industry professionals on social media. Statistical reports based on research conducted by specialized companies and institutes are free to observe such patterns. Some reports aren’t free, but they normally have more useful and extensive information. Immerse yourself in your field and stay up to date on the latest techniques and trends.
To evaluate the desirability of the market you intend to enter, you should also undertake a larger industry analysis. Is the industry expanding or contracting? In this industry, how much clout do suppliers have? What is the total number of buyers? Are there any alternatives? Are there any obstacles to overcome? If that’s the case, what are they? This is critical for you to comprehend because it will assist you in determining whether the industry you’re considering is profitable.
You should also research the regulations that apply to that industry. Are there any rules that you would have to follow? This is especially true in the life sciences sector, where tight regulations govern introducing new goods to the market. The NAFDAC is one such important regulatory body in Nigeria.
Draw Upon Your Personal Experiences.
Many of the most transformative new business opportunities stem from an entrepreneur’s own life experiences and obstacles. Take a moment to think about the issues you’re now facing. These issues may be interfering with your present business pursuits, personal life, or house. Likely, you’re not the only one dealing with these challenges.
Rather than waiting for someone else to fix your problem, take action to improve the world. Come up with a business idea that directly solves the challenges you’re facing. More importantly, recognize that you’re more motivated to create and distribute the finest solution possible in the face of challenges.
Make an effort to inquire about how you might assist others
It’s not always easy to come up with new business opportunities on your own. That is why brainstorming has been proven to be such a useful tool time and time again. You might be having trouble coming up with a game-changing concept. However, there may be several people in your immediate vicinity who have valuable insights. Such individuals may point you on the proper path.
To come up with ideas, don’t be hesitant to consult with numerous different groups. You could, for example, inquire about specific difficulties with family and friends. Also, you could seek advice from coworkers who share your desire to make a difference. You may even hold focus groups in your neighborhood.
Successful companies don’t work in isolation, especially if they aim to make a difference in the world. As you use the input of others, you’ll come up with more ideas for potential difficulties to address. You may even arrive at some suggestions for how your company could solve these problems.
Conclusion
We have shown you how to identify new business opportunities in this post. Try them out and tell us what you think in the comments section. Don’t forget to check out other posts on SME360 to help you improve your business.
