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5 Ways to Identify a Good Business Opportunity
5 Ways to Identify a Good Business Opportunity
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Money Management

5 Ways to Identify a Good Business Opportunity

Money254
Ian Job
September 15, 2022

Do you grapple with thousands of business opportunities and ideas, some of which do not make sense? Many people find it hard to find something that resonates with their passion or budget. 

However, finding the right business idea for you shouldn't be rocket science. Sometimes it's all about responding to a hunch. For example, do you experience or see inefficiencies around you? If there are complaints or statements such as:

  • I wish there were service ABCD
  • If only I could find product XYZ 

It indicates a necessity that needs solving as a business opportunity. All you need is passion, skills, and resources to pursue.  

This article discusses ways to identify suitable business opportunities.  

1. Listen To Potential Clients Concerning a Perceived Need 

One of the most effective ways to tap into a business idea is to pay attention to the conversations around you. Just about anyone, as they could turn out to be your most loyal customer. By listening, you not only connect with them but also understand their needs. 

An astute business person will pick and note the minute details in the conversations and be in tune with the customer's emotions. You can then tailor a business opportunity that matches those exact details with a timely supply chain in terms of service/product. 

Meanwhile, do you still have any past leads, remembering their frustrations and challenges concerning a product? If you know their likes and dislikes, you can create a business opportunity that focuses on their preferences.

 Customer information is significant in identifying the ideal business that caters to their needs. The same info can help you modify and expand an already existing business. 

Read Also: How to Start a Business; Step-By-Step

2. Turn Your Passion and Talent into a Business Opportunity 

Do you have a natural talent idly lying around? You can turn it into a vibrant business empire. While you may initially feel it's risky, focusing on something that excites and motivates you is easier to grow and turn into something bigger. But you do not wake up, and its systems go. Like any other successful venture, planning is vital. Here are some tips to turn your passion into a business:

Start small: careful planning with small baby steps at the beginning can help you minimize the risks with most small new business ventures. Again, starting small means any mistakes you make along the way are negligent, and you can handle them. Baby steps and testing the waters help you learn, adjust and only address what's possible in the business.

  • Roll your brand according to your successes: if you begin to see accomplishments and feats, feel safe to increase your supplies and sales significantly.
  • Please do not abandon your job yet: it's understandable to want to focus on your passion. But it is critical to stick to your day job for the financial security it provides until your new venture yields some good profits or breaks even. Experts advise waiting until you realise at least 75% of what your regular job gives you months before you take the hike.
  •  Focus more on your strengths: A typical business has many operational and management demands you might not fulfill. You may also not have the skills to accomplish the requirements. So do what you can, and find other people to fill in the gaps—using your abilities to the maximum while delegating what you cannot make you less stressed and happier in your new business.  

3. Take Advantage of the Latest Trends and Technology to Create a Unique Niche

Trends in whichever area are a perfect breeding ground for new business opportunities. Any tech change will often have needs and problems to solve regarding a business idea. Do you remember the pandemic? 

While the flu was a considerable downside, many business ideas, and opportunities sprouted in a fortnight. The trick is to create a simple service or product around a trend. Key questions to answer before you can use the idea include:

  •  Who needs the service/product?
  • What's unique about your service/product?
  •  What makes yours a better business than your competitors?

Meanwhile, once you identify a single product or service, carve a robust niche around it and tailor it according to your customer needs. It's about creating a specialised market within a larger market, and the questions to answer are 

  •  What is the location of the buyer persona?
  •  What challenges do they encounter regarding the product/ service?
  •  How can you better serve them?

The data you compile helps you create a unique buyer profile and create products relevant to your customers.

Here is a perfect example of creating a niche with a larger marketplace: thousands of t-shirt stores exist online and offline. However, you can use demographic data to determine your t-shirt niche. You could sell to schools, colleges, or women's groups. You could create designs that appeal to specific age groups, workers, or even gender. 

If you are in the book authorship and selling business, you could do self-help or children's books. But it wouldn't stop there. It would help if you created a niche within the children's book, maybe children's self-help books.

The next step is to relate to your target customers. Let there be a narrative behind your niche. Describe the challenges you have experienced and the mechanisms you have used to solve the problems. Please share your story with your audience in a way that captivates them and establishes loyalty. 

Read Also: Small Biz Hack: How to Separate Business and Personal Finances

4. Study What Your Competitors Are Doing /Not Doing 

Weak links within your competition can be what you need to create a business opportunity. You can establish the weaknesses/opportunities by conducting a competitor analysis.

What is competitor analysis? It's a research technique to gain insight into your competitor's products and sales. The info establishes the sales tactics your competitors use to attract buyers. 

Some of the critical aspects of a typical competitor analysis include: 

  • Knowing who your competitors are 
  • Establish the type of products/ services your competitors sell
  • Widely explore the kinds of sales strategies and tactics your competitors use
  •  Investigate your competitors' pricing of goods

With this information, it is easy to tell what your competitors are doing or not doing. You can capitalize on the competition's weaknesses to sell high-quality goods, use better sales tactics to attract your target customers, or grab a substantial market share by lowering your prices. 

Besides establishing gaps in the market, competitor analysis can help you discover new market trends that equal business ideas. You can create new products/services out of your competitor research. 

Read Also: Should I Get a Job Or Start a Business After College?

5. Improving an Already Existing Business Idea  

Sometimes it's not just about identifying new openings because your business idea is in what already exists. But even if it's already in place, it doesn't mean it's performing. Perhaps the business doesn't serve the entire critical needs of the market. 

While the idea might be appealing, you can decide to do it better than it currently is. You can carve out a niche within the business to meet the needs of a specific target group. But how do you determine a niche in the first place?

By researching within the market to understand what the customers truly need.  Also, by addressing any complaints, you might unearth a suitable niche. And because the business is already there, distinguish yourself by doing better than the competition. Create services/ products that are not just unique but also memorable. 

WRAPPING UP 

While business ideas are all around you, picking the right one that fits your passion, skills, and resources can be frustrating. To succeed, you have to research and innovate with new business openings.  

Have an ear on the ground to understand the challenges, frustrations, and discomfort surrounding services and products. If you have the means, it could be an excellent business opportunity. 

Again, you do not have to start a business from scratch. You can morph into an existing company and keep innovating to improve it. 

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