Good business opportunities come in all shapes and sizes. Some are obvious, such as an unnerved niche or an under-served market segment. Others are more subtle, almost hidden. For example, a new technology might open up a whole new world of opportunity for a savvy operator.
Finding and recognizing good business opportunities is often the most challenging part of being an entrepreneur. After all, you need to spend your time on things that will have a positive impact on your business, rather than simply any old activity that might bring some kind of benefit.
The best way to find good business opportunities is to constantly be looking for them – which means having an alert and inquisitive mind at all times! Once you’ve got that sorted, here are some ways to recognize and understand good business opportunities when they come your way:
Perhaps the most important thing you can do is be proactive. For example, if you are in the foodservice sector, you need to really understand the upcoming changes in consumer eating preferences, such as the rise of veganism and flexitarians (the growth in vegetarianism coupled with the growth in veganism).
You should also understand the impact of innovations in food technology, the rise of a gig economy, the growth of e-commerce, the growth of meal kits, and the growth of meal delivery services – all of which will have a major impact on how people buy food and the foods they eat. You need to be aware of these changes and be asking yourself how they might impact your specific business, and what you might do to capitalize on them.
If you are proactive in this way, you will be much more likely to spot potential business opportunities and threats coming your way.
Watch for Emerging Trends
New technology, in particular, opens up new markets and disrupts old ones. For example, artificial intelligence, augmented reality, and robotics are expected to have a major impact on the healthcare sector.
What changes in the wider environment might have an impact on your industry? For example, changes in legislation may open up new opportunities or threaten existing ones. The same applies to changes in social or cultural trends. What are the most recent changes you’ve noticed in your marketplace? What does that tell you about how your business might need to change?
Be Alert to Mergers and Acquisitions
Big companies often acquire small ones, or joint ventures or partnerships are formed between companies from different industries, sometimes with an eye to bringing new products and services to market. What recent deals have been announced in your marketplace? What does that tell you about the future of your industry? What does it tell you about potential opportunities for your business?
Look Out For Unserved Niches
Some niches might be large enough to be viable, but they aren’t served by anyone right now. For example, if you are in the healthcare sector, you might have noticed that there is no company targeting people who have been diagnosed with diabetes type 2 but who don’t yet have full-blown diabetes. Such an unserved niche might be worth exploring.
Other unserved niches might be more subtle. For example, all businesses have customers who have particular needs or circumstances that they would like addressed – but very few businesses cater specifically to those needs.
Understand the Marketing Mix
You need to understand the marketing mix for your industry and target market. You also need to understand how your competitors are leveraging that marketing mix and what you could do differently to improve your prospects. For example, if most businesses in your industry are using a product as their primary marketing tool, you’ll need a strong service offering instead.
If most businesses are using a service as their primary marketing tool, you’ll need a strong product. If most businesses are using a particular mix of products, services, and price points, you’ll need to find a different mix that is more appealing to your specific target market. How are your competitors marketing their products or services? What marketing mix do they use?
Look Out For Franchise or Dealership
If you are looking for a franchise or dealership, businesses with similar offerings will be a good place to start. You can also find businesses that are in the same industry but have a different primary marketing tool. For example, if you sell food franchises, you may want to look at businesses that market primarily through service or product offerings.
List your competitors and which marketing mix they use and why it works for them. What could you do differently?
Research Your Target Market
You will need to understand who your target market is and what they want. This will help you determine what product or service offerings would be most effective in attracting customers. It will also help you determine pricing strategies, as well as the best mediums (such as social media) to use when promoting your business. You’ll need to create buyer personas based on your target market and how they want to interact with your business.
Finding and recognizing good business opportunities can be challenging, but it’s essential if you want to be successful in your entrepreneurial journey. You need to constantly be on the lookout for new opportunities, and then be ready and able to act on them quickly.
The best way to do this is to have your antennae always fully extended, ready to pick up on anything that might have an impact on your business. Excellent small business opportunities with minimal upfront investment and great potential are available through Window Medics.