Tens of thousands of new business opportunities arise each day, often without warning. But identifying these opportunities isn’t always easy. Because many are fly-by-night or disguised as something else, how can one know if the opportunity they see in front of them is worth their time and energy? This blog entry will explore five ways to identify a promising business opportunity.
Targeting Potential Customers
Not all business opportunities are equal. Some will target a much smaller niche than others. Identify the types of products and services that would be of interest to their target audience. Focusing on specific qualities will help them narrow their market to those who would benefit from the product.
Do Competitive Analysis
As the business climate changes, new competitors enter the market, and others exit, forcing them to change their plan of attack to stay competitive. Market analysis is absolutely essential for this. Comparing their business to others in the same industry can help them determine under or over-valued. By determining the value of their company, they will be able to make informed decisions when making deals.
Industry trends are often expressed as critical thresholds. They explain the point at which a business will be forced to change its direction or risk falling behind. By looking at how others in the industry respond to these thresholds, they can delineate trends that affect their specific industry.
Try to understand who their customers will be. If they only know their core market, they won’t adequately serve those who fall outside of it. The more specific their customer profile, the better they will be able to attract new ones. Understanding what sort of person would be interested in their product or service will help them know who to target to help grow their business.
What is the best way to serve their customers? They may have the most money to spend on advertising, but that does not mean they are the right target market. Knowing who would be interested in their product and how they would want to buy it will know what marketing strategies are needed to reach them.
Originally published on Herrick Lipton’s website.