25-08-2017, 09:32 PM
Identify business opportunities
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Business Opportunity may be defined as a business proposal an entrepreneur would like to pursue considering risk and the reward involved in the proposal which may be manufacturing or servicing or trading.
New products and new markets . . . they’re the life blood of any business. With increasing competition, more customer prospects, and shorter product life cycles, expansion into new markets combined with a regular flow of new products into the marketing stream is essential for continued growth and business. The business world today is a fast-moving one, and the pace of change can at times seem bewildering. The environment in which your business operates is changing all the time, and there are many different factors that influence it. There are continual changes in your market, your customers’ needs and preferences, the technology you use, your sales channels, and the way you can deliver your products or services. These changes can bring threats to your business, but they will also, undoubtedly, bring opportunities.
Opportunity identification is a very difficult task. Most good business opportunities do not suddenly appear, but rather result from an entrepreneur’s alertness to possibilities, or in some case, the establishment of mechanisms that identify potential opportunities. Business opportunities often come unexpectedly, as if falling from the sky. Sometimes without our knowledge a business opportunity can be extracted anywhere.
How do people generally identify business opportunity?
Worldwide most of the entrepreneurs identify the Business Opportunity based on the following three simple ways:
1. My father or someone in my family is doing it successfully, so I want to do the same
2. I have related experience; hence I am pursuing this opportunity
3. Someone is doing it successfully whom I know. Hence, I am pursuing this Opportunity. If the line of thinking continues to this then the number of sellers will be more than buyers which has already led to unhealthy competition. This is the cause for high mortality rate in micro enterprises. In order to rectify this problem, there is need for a scientific approach to identify business opportunities.
SOURCES OF BUSINESS OPPORTUNITIES
There are all sorts of business opportunities to explore and which are already present in the market, but not all of them will make a perfect match for you. Choose carefully then because taking advantage of the wrong business opportunity can only cause you more financial burden.
Self-Discovery as Source for Business Opportunities
Create a Product for an Unsatisfied Need
There are a lot of unsatisfied needs in all types of markets and although taking advantage of these business opportunities promises a lot of rewards, keep in mind that they also represent greater risk.
Re-think 30 years ago. Is there a demand for a major anti-virus software, Internet Service Providers, or desktop computer? No! Key business ideas for new products or services are to understand the market needs that have not been met.
Look around and ask yourself, “How can this situation be improved?” Ask others additional services they want. Focus on the target market and brainstorm ideas of interest groups service. For example, elderly people are gardening in North America. What products or services that you can create so they can garden longer and more easily?
Improve an Existing Product
If you notice a particular product or service that is obviously unable to fully satisfy its target market, that situation can be immediately transformed into a business opportunity...if you have an idea on how to improve it, that is. These business opportunities represent lower risks and consequently lower rewards as well compared to those associated with creating a completely new product.
The difference between raw and processed timber is a good example to put the product in an additional process that can add value, but additional processes are not the only way to provide added value. You can add a service, or combine a single product with another product.