How to Identify Good Business Opportunities in the Market
As an entrepreneur, you have to continually seek ways to improve your startup, you need the smart ideas for your big financial break. Even if you are planning to venture into the entrepreneurship track, you need to know how to identify good business opportunities around you.
Probably as the head of the creative unit in a large enterprise, you need to always be on the game with a well of ideas. To stay on top of the competition, you need ideas and not just any ideas but smart ones. An idea that will set you apart from the competition.
But how do we find those ideas? Well, let us first look at how to differentiate a good idea from a bad one.
What Makes a Business Opportunity Good?
With the birth of every new idea comes the risk. No idea is exactly bad or good under the right conditions; it’s just that risks involved with a particular idea might be greater than another.
Before you start going for an idea, you should check the resources available to you, can you exploit it? Are the resources enough? These burning questions should be the first step to determine what idea you should go for. Other things you need to check includes:
Is it affordable?
I know that idea probably sounds so perfect to you, and you are already thinking of all the profit you will make and other investments you’d put the money in, but have you thought about how you’d afford it? And I am not really talking about taking a loan or borrowing from friends because you shouldn’t borrow while starting out. Do you really have what it takes to pull it off?
While starting out a business, things can become foggy at times; having a clear roadmap is essential in building a successful startup. Also know that things may not always go according to plan.
Are you motivated enough to push through?
This is as important as having the money for your startup. If you are not passionate enough about that idea, you will probably hit the rocks soon. Setbacks are sure to come while starting out your business and if you are not self-motivated, you will see yourself throwing in the towel.
Getting to work on an idea comes with its own responsibilities, do you have the skillset required for the idea to become a success? If no, then you need to develop the skills or find someone to help you out.
Look at the long-term life of your business and determine if it will be able to grow in productivity and profit in the long run with low cost on human resources. A good business idea will probably be able to scale up within a few years.
Explaining further, this means that you can expand your business with a low capital and still be able to make maximum profit. You will have enough to pay for your workforce and other costs and still make good profit.
Location is very important when determining what idea to go for. If you are located in a place where your idea will not sell, then it is probably better to let it go unless there is a way to reach your target audience.
Timing in business in everything and might just be the thin line between business success or failure. If you enter a market when the timing is perfect, then your business is sure to bloom.
One of the key ways to determine a perfect timing for a business is when the market is in great demand for a particular solution or need something new and different; That is when you should come in with your idea.
Is it measurable?
A good business idea should be measurable. You should be able to measure your production and efforts. For example, you are able to deliver 10 different clothing to your clients in a week.
Types of Business Opportunities to try in 2023
With the appearance of more workflow, more companies are moving into automations. Automation is setting up a process that can be repeated overtime without supervision.
More companies use different automating tools like buffer, Pushowl’s, HubSpot, etc. to make a process efficient.
Some of the skills you will need is programming which will help you build a good automation tool.
Drop shipping is a good business idea you can start from home. This is where you sell to consumers and the manufacturer takes care of all the logistics and delivery.
It is a good business venture if you are still starting out.
The world as we know it is constantly moving into frequent use of artificial intelligence in different fields. Many tools are now programmed with artificial intelligence.
We have virtual assistant tools like Cortana, Siri and Google assistant which uses artificial intelligence to make our lives easier. This article also mentioned AI as one of the top businesses of the future.
With the rise in the use of internet to perform various functions, cyber-crimes also increase. There is a need for cyber security now.
This involves increasing the worth of a website by applying good SEO and marketing, then you sell the website at a high price.
You can buy a low performing website for $300 or even less and work on the site to improve it. Once the value is much higher, you can sell for as high as $5,000 within a year if you’re good.
To improve a website’s value, you will need to generate traffic and run ads.
Consulting is one service that you can render at the comfort of your home. If you find yourself knowledgeable in a particular field, you can start offering consulting service and charge people for your time.
Real Estate Investing
This is one of the gold mines you should checkout. Although it requires a large capital, it is still a good way to have huge earnings.
Dog walking is a business that has become popular and quite lucrative. Busy Dog and pet owners are now willing to pay to have someone walk their dog.
This is a business you can start with no capital.
Most people do not have much time to take care of their home because of their busy schedule, they are ready to pay to have people clean up their house for them.
Once you have bought the necessary tools, you can start running adverts to promote your job. Soon enough you’d start getting calls from people requesting your service.
3 Smart Ways to Find Business Ideas and Opportunities
Identify a job that needs to be done
People take advantage of service/product offerings to perform a job that they cannot do themselves. When they need to get something done, they think of the best tool that will do the job perfectly.
Any idea you have should be one that does a job. So, when you identify a job that needs to be done, you will start getting different ideas of what you can do or build to do that job.
Conducting market research can also help you to identify new opportunities to venture into. Using the disruptive innovation according to Christensen, there are two methods you can follow which are:
a. Low end disruption
This is when a company enters the lowest market segment with a low profit. The dominant company will not be motivated to see the new entrant as a competition and therefore does not fight back, the new company further advances to the next higher segment with time. The dominant company might decide to go into higher segments with great profits.
Overtime, the new company keeps scaling into higher market segments until it has completely driven out the former company. It then becomes dominant in the market. This type of market disruption is so much better than going head on with the company at first.
b. New-market disruption
This is a process when you create a product to cater for people who are tired of the existing products. They are already worn out by having to pay more for updates and additional features in old products and earnestly crave for something new.
You can create a product that offers better services at a reasonable cost.
You can ask for feedback from users of a similar product you might want to create. Ask what features they would like in the product, and how to make it better.
Then you can try to win the competitors customers by making the product cheaper with good quality, faster process, assured security, accessible to all.
Growing a startup can be tricky especially for beginners who have no experience, gathering enough information before you start can help put your feet at the door.
We are glad to have been part of the process of feeding you with the right information to start out. Do you have any questions? We would love to hear from you in the comments.