Peter Drucker
The ability to identify business opportunities is an essential characteristic of an entrepreneur.
What is an Opportunity?
The word opportunity suggests a good chance or a favourable situation to do something offered by circumstances.
Common Questions Faced by Entrepreneurs
A critical question that all entrepreneurs face is how to go about finding the business opportunity that is right for them.
- Some common questions that entrepreneurs constantly think about are:
- Should the new enterprise introduce a new product or service based on an unmet need?
- Should the new enterprise reflect and existing product or service from one market and offer it in another where it may not be available?
- Should the enterprise be based on triad and tested formula that has worked elsewhere?
It is therefore extremely important that entrepreneurs must learn how to identify new and existing business opportunities and evaluate their chances of success.
When is an Identity and Opportunity?
An idea is an opportunity when:
- It creates or adds value to a customer
- It solves a significant problem, removes a pain point or meets a demand
- Has a robust merely and profit margin
- Is a good fit with the founder and management team at the right time and place
Factors to Consider When Looking for Opportunities
Consider the following when looking for business opportunities:
- Economic trends
- Marked trends
- Changes in funding
- Changes in political support
- Changing relationships between vendors, partners and suppliers
- Shift in target audience
Ways to Identify New Business Opportunities
1. Identify Market Inefficiencies
When looking at a market, consider what inefficiencies are present in the market. Thick about ways to correct these inefficiencies.
2. Remove Key Hassles
Rather than create a new product or service, you can innovatively improve a product, service or process.
3. Create Something New
Thick about how you can create a new experience for customers, based on existing business models.
4. Pick a Growing Sector/Industry
Research and find out which sectors or industries are growing and think about what opportunities you can tap in the same.
5. Think About Product Differentiation
If you already have a product in mind, think about to set it apart from the existing ones.
Ways to Identify Business Opportunities within Your Business
1. SWOT Analysis
An excellent way to identify opportunities inside your business is by creating a SWOT analysis. The acronym SWOT stands for strengths, weaknesses, opportunities, and threats. SWOT analysis frameworks:
Consider the following when looking for business opportunities:
By looking at yourself and your competitors using the SWOT framework, you can uncover opportunities that you can exploit, as well as manage and eliminate threats that could derail your success.
2. Establishing Your USP
Establish your USP and position yourself as different from your competitors. Identify why customers should buy from you and promote that reason.
Opportunity Analysis
Once you have identified an opportunity, you need to analyse it.
To analyse an opportunity, you must:
- Remember, opportunities are situational.
- Avoid the latest craze.
- Look for a proven track record.
- Live your idea.
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