5 Ways To Identify A Business Opportunity
As small business owners, there is always one thing to always bear in mind when identifying a suitable business opportunity. This is the fact that whatever idea you have must meet human needs in one way or another. No one is going to invest in a business that isn’t beneficial to them. What this means is – providing value should be the bedrock of any business idea. Having established that, let’s take a look at ways to identify a business opportunity.
Ask questions
Inventing new ideas won’t always come easy for business owners. This is where brainstorming comes to play. A lot of people exist around you with what can turn out to be your next big idea. All you have to do is take out time to consult with them and brainstorm ideas together.
For instance, you could ask your family and friends about certain challenges they encounter in their day to day activities. In the course of these conversations, you could find a gap that needs to be filled. Another way to go about this is by consulting with like minded people in your circle with the desire to effect a change. Finding a need that will result in a business opportunity is made easier with people in your community.
For small business owners, businesses can’t thrive in a vacuum. Ideas generated from people are needed. In other words, leveraging your relationship with people is one key way to recognise an ideal business opportunity. Ask the questions, recognise the gaps, then go ahead to proffer a solution.
Draw inspiration from your personal experiences
There is this inspiring story about the Lone Wolf Tree Stands, founded by a hunter. The idea was birthed after hunting and he couldn’t find a suitable tree for his hunting style. What this hunter wanted was a small and easy stand that could be easily setup. Upon finding out what he needed did not exist in the marketplace, he simply invented one. That was his big break. Sometimes, a business opportunity lies in your personal experiences and frustrations. All you might need to do is find a way to solve that problem you’re experiencing. In return, you could end up solving that of others as well.
While your first prototype might come with some struggles, that’s usually not a hint to give up. Stick with it for a while and find out the best way to make it work and serve its purpose. Truth is, when you constantly experience a particular problem, chances are others are experiencing the same. While they might not realise it at first, presenting them with a possible solution can be a way to reveal what they’ve been missing out on.
Take advantage of available resources
The availability of some resources in your surroundings can provide business opportunities. Such resources can be in the form of information, raw materials, technology, or even skills. Carry out your research to find out how these resources can be converted into money. For example, processing these raw materials into finished products can be a huge source of income if properly utilised.
Study the gaps in demand and supply
Another effective way for business owners to identify business opportunities is by studying the trend in demand and supply. Is there a particular item in high demand? Find out whether or not the supply of such item is proportional to its demand. In a case where supply isn’t, there lies a great business opportunity. A shortage of supply simply means there is room for more in the business.
For instance, you notice a retailer in your community who can only supply about half of what the community needs when it comes to such a product. It doesn’t end there. Let’s assume there is a boom in demand coupled with the shortage of supply. This scenario is a perfect opportunity for you to cast your net into the sea towards that particular business’s direction.
However, studying the gap in demand and supply is not all there is to it. You also have to research that particular product. For example, what’s the cost of production? What are the challenges that come with the business?
Study import and export trends
Several products get imported into the country daily. This can be due to different factors ranging from a shortage of supply within the country to lower the cost of importation. Studying these imports can help you decide whether or not a business opportunity lies there for you. While you might be unable to produce the same quality and quantity as the imported ones, you can make yours cheaper and more attractive.
Another way to go about this is by studying the export trends. What products are currently being exported? Most often, these products get exported in either semi-finished or raw form. Considering this, you might want to find ways to increase the value of such products before exporting. You are sure to be in business if this works out for you.
In conclusion, business opportunities exist everywhere if business owners would only look hard enough. You don’t always have to create a business idea from scratch, just build on an existing one and make a business out of it.
