There may be many business ideas, but how to identify new business opportunities that have the potential to become solid and lasting ventures is a question that usually settles on the minds of those who have entrepreneurship as their life purpose.
In the following paragraphs, you will have the opportunity to understand the differences between business ideas and business opportunities, in addition, you will learn about the existence of four key indicators to recognize business ideas and, finally, you will discover fifteen effective signals that will allow you identify new business opportunities. Ahead!
Difference Between Business Ideas and Business Opportunities
The business idea is often confused with the business opportunity, however, they are two concepts that differ in their essence.
In the first place, it can be said that a business idea refers to the mental conceptualization of business activity and the intention to undertake it.
On the other hand, a business opportunity is understood as the solution to a problem or the satisfaction of a need that exists in a market.
A business opportunity proposes a solution to a detected problem by offering products or services; detects the degree of acceptance of these solutions in the market, and applying different communication models (strategies, marketing, advertising, etc.) to create or increase the value perceived by the customer. These three elements are necessary to define an opportunity and differentiate it from a simple idea. If only one or two of these concepts were available, it would be a business idea with the potential to become an opportunity in its own right.
Business idea vs. Business opportunity
- A business opportunity is a more complex construct than a business idea.
- Out of many ideas, only a few will come to be seen as opportunities.
- What is important is how the entrepreneur works on an idea to turn it into a viable business opportunity.
4 indicators to identify business ideas
Being successful in an undertaking consists of identifying our knowledge, skills, abilities, and limitations (our own and those of the surrounding conditions); combining them with the detection of opportunities in a specific context, to generate quick solutions and make them reach potential customers.
Every business begins with an idea to solve or improve a need, a desire, or a simple expectation, be it local, regional, or even global, through the creation of satisfies. There are several options to identify an idea that ultimately becomes a business opportunity, of which we can mention:
Understood as matters whose solution generates business opportunities (economic, social, environmental, etc.) for an individual or organization.
The absence of an element whose conquest can create new marketing options in a given population. Needs can be essential or occasional according to the purpose of their orientation and the level of satisfaction perceived by the client.
Areas of opportunity
They can be defined as the elements that can be improved, to increase productivity and efficiency in a business or to generate a positive and relatively different experience for the customer.
Defined as the ability of a process to add new value to any activity, in the search for specific results associated with an improvement and whose implementation generates commercial benefits for the organization. Due to the need for innovations to be associated with a positive perception of the business, these are generally mainly applied to products and services.
15 Signs to Identify New Business Opportunities
Business opportunities can be defined as times or environments conducive to executing business ideas. Here are 15 signals that will be useful to you to identify new business opportunities and thus take your idea to the next level:
Detect underserved or overserved customers
It is possible to create new business units based on customers who have the perception of not receiving the value for which they are paying. Also, adjusting the offer of services or products according to their needs on time, without making it excessive and with a more affordable price.
Look for inefficiencies in the market
Currently, it is not enough to have an excellent product or service, in addition to this, the means that allow increasing the possibilities of choice for the end-user are very important. The objective is to achieve differentiation in cost, service, or logistics with respect to competitors.
Identify new demographic or market segments
Part of the premise that establishes “there are no typified consumers, but moments of consumption”. The non-user should be the target, those groups that are not accessed or that are simply not yet identified because no one has offered them a different way to meet their needs.
Look for unresolved frustrations
Day-by-day, there is a population that faces the adoption of new procedures (regarding products, processes, or services) that hinder their well-being, generating recurrent discomfort and frustrations. This prompts them to seek solutions (in many cases only temporary) that facilitate these procedures, generating significant savings in time and the level of complexity presented by the change they require.
Incorporate new technologies or products
All technological implementation or development of new products is intended to facilitate the level of daily life for people, however, it is not limited to the simple fact of acquiring technologies, it also implies learning to be able to get the most out of it. The above described opens a window of possibilities for the development of new innovative projects that allow improving the characteristics of a product, process, or service; in addition to the creation of a wide range of complementary commercial solutions to these.
Due to derivations of new legislation or policies
Frequently, organizations (public or private) undergo changes that require the adoption and implementation of new legislation or policies, thus creating the need to find alternative solutions. Said solutions allow introducing new business opportunities in this to assimilate and prevent the risks involved in the dynamics of change.
Through the possibility of identifying mechanisms for the elimination of traditional barriers
This business opportunity seeks innovative solutions whose vision breaks with the “status quo”; the change in the traditional schemes is a priority if a response is required to complex problems that are partially solved or whose solution is not satisfactory. This requires the identification of a problem in which its solution is strongly linked to the limitations of its environment.
Adjust incorrect competitive variables in saturated markets
The identification of the main characteristics of a product/service and the reason (value) for which it is bought in a given market, opens up new marketing and penetration opportunities. Adapting the product based on what makes sense to the user for its acquisition, allows creating new sales strategies and increasing the profit margin in the same market.
Adopt solutions (products, processes, or services) that work on other sites
When a market is saturated, it is best to travel and look for new business proposals that can work in our location. Understanding that, when trying to replicate these new business opportunities in a different location, it not only requires imitating the concept, since the success of the implementation is very strongly linked to the process that governs the operation of the business.
Identify current trends
The identification of patterns/trends (aided with statistical tools) is a great possibility of creating new business opportunities, in which the management of the environment makes it possible to identify and predict the products/services that are continuously appreciated and requested by the market.
Diversify saturation based exclusively on one service method or process
For the development of new business opportunities, in this case, the adoption of technological and information tools is extremely useful, since the market generally looks for means that facilitate said services or processes in the least amount of operations possible; in addition to a high level of information and efficient logistics.
Based on the practical ideals of a community
There are businesses in which the client seeks to find practical and specific solutions for a problem/need. These business opportunities arise in a specific community and it is possible to identify them according to the characteristics of its population, customs, location, and climate, among others.
Identify new stress situations in a population
As cities grow, new needs and problems arise that cause stress on their population. But also with this derive new business opportunities product of innovations that allow mitigating this stress; The solution is to find the source of the stress and create the means to reduce the adverse effects in order of priority for the market.
Products or services associated with a platform
Some products or services function as a platform for the creation of new elements associated with improving or increasing their operation and protection. They can arise as derivations or complements of the platform, their level of complexity varies according to the technology and precision required.
Locating new lines of business within the organization
In the case of an established company, it is possible to find new marketing options based on products or services that arise as “spinoffs”, which come from the production and logistics processes. Even being in some occasions, waste elements for the business, which only require an additional thread for its use.