5 Tips for Recognizing a Meaningful Business Opportunity When You See One

[Edoman]

5 Tips for Recognizing a Meaningful Business Opportunity When You See One



 MAY 12, 2020


According to the Small Business Association, roughly 50 percent of businesses survive to reach their fifth year. What is interesting, however, is that the SBA’s analysis found that these survival rates generally remain consistent regardless of the overall state of the economy. In other words, lasting success is largely dependent on choosing the right business opportunity.
While understanding the basics of running a business is certainly important, your ability to recognize meaningful opportunities will play a major role in whether you author a lasting success story.


Idenitfying these opportunities isn’t an exact science, but there are still telltale signs to look out for, beginning with the following five.


1. You’ve found a noteworthy market inefficiency


Not surprisingly, the best ideas come when you find a meaningful problem to solve. As I’ve written previously, some of the easiest ways to identify these opportunities come by looking at problems within your own community or drawing from things you’ve experienced firsthand.


A big part of why these methods are so valuable is because they help you identify issues that you are going to be more passionate about. As a result, your business endeavors are more likely to be warmly received and create a meaningful impact.


2. Identify successful business models in similar markets


I recently had the chance to speak with Alex Cruder, CEO of Curbie. 

During our conversation, he advised, “Pay close attention to business models and products that work well in similar markets to your own, but aren’t currently available in your area. 

Look for ways to bring these concepts to your local market, as they will have much lower risk than more novel ideas. 

For example, I saw the success of online car dealerships in the United States, a business model that had not yet been introduced in Canada. Bringing an already-successful idea to a new market led to incredible growth.”

Even in our digital-centric age, many successful businesses are still confined to a particular country or region. 

This gives you the opportunity to establish your own similar business in your own area. The basic business model and product line have already been proven. Using this model to launch your own brand is an easy course to success.


3. A new approach to a tried-and-true idea


In a 2009 on-campus podcast interview, Raffi Amit, professor of management at Wharton, gave this example of how digital entrepreneurs develop winning ideas: “You could go back to the beginning of eBay, where they saw an opportunity to connect people through launching a virtual flea market. 

It offered a platform that connected buyers and sellers directly.”

This description of eBay as a “virtual flea market” doesn’t make it sound too unique, but that’s a big part of what helped make it so successful.

 It took a concept that people already knew and understood and brought it to the digital world. This same idea has worked for countless other brands. 

Finding ways to digitize or otherwise streamline an in-demand concept will fuel rapid growth.


4. It’s something people are asking for

Regardless of whether you currently run your own business or are working in a 9-to-5 job, your work experience gives you ample opportunity to hear from customers. 

Direct customer feedback, buying trends and other requests give you greater insight into what the market wants and needs. 


Sometimes, your customers will ask for something that isn’t currently being offered. Other times, they’ll want something similar to what is already available, but better. Whether the opportunity lies in a new product or improved customer service, paying close attention to what customers are saying is key for identifying business models that will be well-received by your local market.



5. There is an opportunity to act quickly


While market research and other preparatory steps are certainly important, many of the most meaningful business opportunities are those which allow for a fast launch and an agile, iterative approach. This allows you to respond quickly to market disruptions and pivot so you can better serve customers with your winning idea.


Being the first in your market with a particular idea also gives you the opportunity to establish yourself as the market leader. As one example, an evaluation of pharmaceutical launches by McKinsey found that on average, the first product to market maintained 40 percent of the market 10 years after its launch. Those that were fifth to market or later only achieved 10 percent of the total market share.

The advantage was even greater for drugs that had a longer lead time before other competitors entered the market. The ability to get into the market first has played a big role in the successes of brands ranging from Amazon to Kellogg.


At the end of the day, you’ll never know if a business opportunity delivers meaningful results until you test the market. 

However, by using these principles to help you better identify and evaluate ideas, you will be better poised for successful market entry.
Don’t delay when you have a winning business idea in hand. 

The sooner you act, the greater your impact on the marketplace will be.

[Edoman]

7 Ways to Identify Real, Money-Making Business Opportunities



 MAY 12, 2020


Entrepreneurship is on the rise, with over 550,000 people going into business for themselves each month in the United States alone. Of course, it’s one thing to start your own business. It’s quite another to actually make any money off of it.

So, how can you know if your next great idea really is a great idea? Pay attention — the following seven tips will help you be better prepared to identify business opportunities that could earn you some serious cash in the not-so-distant future.

1. People are paying for other products in your niche.


One simple way to gauge whether your business has any potential marketability is to find out what people are already buying. Google Trends is an excellent resource for discovering which topics and products are receiving the greatest level of interest.

Examining trends for a product category over time will provide clear insights as to whether interest is waxing or waning for your niche idea. 

The more market research you perform, the easier it will be to identify your target audience.


2. It solves a real problem.

Successful, scaleable businesses try to solve a problem that consumers face on a daily basis. 

The more integrated (and seemingly insurmountable) a problem is in your customers’ lives, the more vital your solution quickly becomes. Not all problems are created equal, though.

Take large-scale logistics, for example. As Max Lock, a close colleague and 22-year-old CEO of Fleet, told me in a recent email, focusing on needs will always be more sustainable than wants.


“Major industries like logistics continue to face challenges on a global scale due to documentation difficulties and other solvable problems — I saw it everywhere. Creating solutions to the issues these major industries are actually experiencing is far more useful than trying to address things that most people don’t view as a problem. Dealing with the latter would be little more than a waste of time.”

Logistics is one thing, but there are a host of real problems from all sorts of industries people face on a regular basis. 

If you’re struggling to discover a money-making opportunity of your own, speak with those you know and trust. They’ll likely provide you with the starting point you need to get to work on a marketable solution.


3. You’ve already made a sale.

It can be hard to gauge whether your product or service will be a success when still working a 9-to-5 job. But, this doesn’t mean you can’t test out your idea on the side. 

Providing freelance work through Upwork can help you determine if there’s an actual demand for your business services.

Selling homemade items through an Etsy shop will help you find a market for your products. Attempting to make real sales as a side hustle before going all-in on your business will give you a much clearer sense of direction.


4. You understand the costs.

It goes without saying that some business ideas take a lot more financial effort to get up and running than others. 

A freelance blogger who works from home won’t have nearly the same type of overhead expenses as a custom furniture manufacturer. It is essential that you understand the costs of your business before launching your product or service.

Your expenses should directly influence your price point and plans for growth. If you don’t have a clear strategy for earning more than it will cost to run your business, you should probably keep your idea on the back-burner.


5. There is a healthy market.


Not all industries are created equal. Advances in technology have made things like travel agencies and video rental stores obsolete. It doesn’t matter how much you love your idea — the cards are stacked against you. 

Do your market research. There isn’t much room for growth when you try to enter a dying industry. Looking at overall trends will help you determine if an idea provides long-term opportunities for growth and financial success.

6. It stands out from the crowd.

Cookie-cutter ideas rarely become a major success.

Money-making business opportunities have key points of differentiation that set them apart from other companies in their niche. This doesn’t mean you have to completely reinvent the wheel with your product or service. Instead, you need to find what you do better than the competition.

While a truly unique product will certainly stand out, so too will a much lower price point or higher-quality manufacturing. A unique selling proposition should emphasize your brand personality while appealing to your ideal customer. If you can easily identify what makes you unique, your business is much more likely to be a success.


7. You’re passionate about your idea.
While all of the previously mentioned factors are essential for your business idea to be a success, you won’t get far if you don’t truly love your idea.

“Every successful small-business owner and entrepreneur must have a passion that drives them forward — a core belief that keeps them pressing on, even though others don’t necessarily have the same vision,” wrote Clate Mask, co-founder and CEO of Infusionsoft, in a piece for Entrepreneur. “The difference between those who push through difficult times and those who do not is passion.”

Time to start earning is now.


There are never any guarantees when trying to start your own business.
But, that doesn’t mean you have to go in completely blind. No matter where you’re at in life, you can become a successful entrepreneur and achieve the financial freedom you desire. As you put in the time and effort to ensure you’ve found a quality opportunity, you’ll be better equipped to achieve the right results.

[Edoman]

5 Simple Ways to Identify Business Ideas That Could (Really) Change the World



 MAY 12, 2020


It’s one thing to be able to identify industries and businesses that are poised for major market success. But entrepreneurship requires more than just finding an idea that can make a lot of money.

 For entrepreneurs to tap into the motivating power that drives lasting success, the ideas they conceive must be powerful enough to change the world through major economic, social or environmental impact.

If your idea meets that criterion, quite simply, you’ll be far more motivated to get through the entrepreneurial challenges that will follow if your product or services are a force for good. 

The reason is that it will be something you can truly become emotionally invested in. The challenge, of course, is identifying these business ideas in the first place. 


How to do that? Here are five simple ways through which you can identify world-changing business ideas:


1. Find opportunities in your own community.


Though cultures and languages may vary, many of the challenges facing our world are similar across many parts of the globe.

 As such, one of the best ways to identify world-changing ideas is to start locally: Look for issues that concern your local community.
To get an expert view on how to look for opportunities locally, via email, I reached out to Geoffrey Leslie, CEO and president of Screems. 

This Netherlands-based company is slated to affect changes on both a local and global level using MAPS (Major Appliance Power Station), a clean energy-generating device that can be installed in a home or business. It’s a device that just might change communities around the world through the affordable, self-sustaining electricity it offers.

“So many of the best ideas come from our own personal observations,” Leslie wrote to me, echoing my thought about looking locally. “But to obtain these insights, you have to get out in the community.”

He suggested joining a volunteer group to learn more about the issues it’s trying to address, and reading news articles that discuss problems in your city. “These micro-level interactions can make all the difference in finding an issue you can address,” Leslie said.


Rather than trying to transform the entire world all in one go, you might instead identify ideas that can first be tested in your local community. This can serve as a great way to fine-tune your efforts and quantify your impact as you prepare to take your idea to a much bigger stage.


2. Draw upon your own personal experiences.

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.

In Leslie’s case, for example, this meant looking at his home in the Netherlands and seeing a heavy reliance on fossil fuel. 

This, combined with rising concern over climate change, pegged his solution as not only an important advancement for his company, but for the world at large with the potential to democratize energy production.


3. Look for ideas that get other people involved.


Many of the most successful world-changing ideas don’t just offer a new product or service. They seek to change the way people approach their day-to-day living. 

Changing someone’s mental outlook will have a far greater reach and impact in the long run.

Take this example shared by business consultant Monica Bourgeau. As she wrote in HuffPost, “[Author and TEDx speaker] John-Paul Flintoff works to help protect the environment and prevent global warming. 

He realized he could make an immediate difference by reaching out to his neighbors. However, he did this not by overloading them with facts and research, but by giving them … tomato plants.


Every year, Flintoff offers his extra tomato seedlings to his neighbors, Bourgeau wrote, noting: “This simple and kind act started his neighbors growing some of their own food, thereby slightly reducing their environmental impact.”

The result: As customers and community members become personally involved, you’ll make a much bigger difference than you would on your own. 


4. Go out of your way to ask others how you can help.


Coming up with ideas on your own isn’t always easy. 

That’s why brainstorming has consistently been found to be such a powerful tool. You may be struggling to come up with a world-changing idea. 

But there could be plenty of people around you who have great insights that can lead you in the right direction.
Don’t be afraid to consult with several different groups to find ideas.

For example, you could ask family and friends about specific challenges. You could consult with like-minded coworkers who also wish to make an impact. You could even conduct focus groups in your own community.

Successful businesses don’t operate in a vacuum, especially if they want to change the world. As you leverage others’ input, you’ll generate more ideas regarding potential issues you can address — and even some possibilities for how your business could solve these problems.


5. Give back through meaningful philanthropical work.

Your initial business idea doesn’t necessarily need to be world-changing in and of itself. But when you pair it with a properly aligned philanthropic effort, you can become a true force for good.

I’ve previously profiled Habir Sian, who turned his eyewear company into something greater than a traditional business because he donated glasses and set up sustainable eye clinics in impoverished countries. 

Sian didn’t start his business with these philanthropic concepts in mind. But, by identifying real issues related to his industry, he was able to make these charitable efforts a core part of his company’s identity. A pair of glasses in and of itself might not change the world. But pairing eyewear with this philanthropic outreach certainly just might.

Whether you’re seeking to improve living conditions for impoverished people or trying to revolutionize your industry, finding a greater purpose in your work can make all the difference for your entrepreneurial efforts.
Making a meaningful difference isn’t as far off as you might think.