Identifying a business opportunity is the first step towards becoming an entrepreneur. Every successful entrepreneur must be good at opportunity identification.
Entrepreneurship is all about identifying opportunities in a problem then taking practical steps towards turning this opportunity into money.
It is important to know and understand how entrepreneurs identify and decide on a new business opportunity with the best chance to succeed.
The most important part of all business attempts common to most successful startups is answering an unmet need in the market.
Customers are always interested in products that add value. They buy products needed only to satisfy a want and solve a problem.
Are you an entrepreneur or intending to become one?
Here are five ways to discover a business opportunity:
1. Read people's comments on social media
One of the easiest ways to discover a business opportunity is to listen to what people are saying on social media. Social media trends can give you inspiration for a business opportunity.
Also, reading through the social media comments people make on either your own product or that of your competitors could give you an idea of a new opportunity to be tapped into.
It is good to follow your competitors and also other brands on social media. They can be a very good source of inspiration.
2. Listen to your prospects
If you can listen, you can be a good business person. It's via listening you diagnose your prospects and know what exactly is their pain point.
When you’re targeting potential customers listen to their needs, wants, challenges, and frustrations with your industry. Have they used similar products and services before? What did they like and dislike? Why did they come to you? What are their objections to your products or services?
This will help you to find opportunities to develop more tailored products and services, hone your target market, and identify and overcome common objections.
3. Listen to your customers
Your current customers should not be left behind while trying to identify a business opportunity.
When you’re talking to your customers listen to what they saying about your industry, products, and services. What are their frequently asked questions? Experiences? Frustrations? Feedback and complaints?
This valuable customer information will help you identify key business opportunities to expand and develop your current products and services.
4. Spy on your competitors
Do a little competitive analysis (don’t let it lead to competitive paralysis though) to see what other startups are doing, and more importantly, not doing? Where are they falling down? What are they doing right? What makes customers go to them over you?
Analyzing your competitors will help you identify key business opportunities to expand your market reach and develop your products and services.
5. Look at industry trends and insights
Subscribe to industry publications, join relevant associations, set Google alerts for key industry terms and news, and follow other industry experts on social media.
Absorb yourself in your industry and continually educate yourself on the latest techniques and trends.
6. Draw upon your own personal experience
You can identify an opportunity via your own personal experience.
Many of the most powerful world-changing ideas come from the experiences and challenges an entrepreneur has faced in his or her own life. Take a moment to consider the problems you’re currently dealing with. These problems could be affecting your current business endeavors, your personal life, or your home.
Chances are, you’re not the only person facing these issues.
Rather than wait for someone else to solve your problem for you, take steps to change the world by developing a business idea that directly addresses the issues you’re confronting. More importantly, understand that when you’re addressing your own problems, you'll be more likely to be passionate about creating and making available the best solution possible.