You may have already had discussions with members of your organization regarding new business ideas and market strategies, but have not agreed on a particular approach to pursue. The decision you make likely will produce a significant impact on the fate of your business.
Due to the effects of the choice, it is essential for your organization to have a plan in place when making a decision.
Below you will see a few steps to help you decide what makes an excellent opportunity and how to proceed in acting upon it.
1. Understand your customer and competition.
It’s essential to use market research to understand whether there is a need or want for your service/idea. Using various market research techniques in your analysis is necessary. Do not make the mistake of only using one method, as each way may provide different answers.
Another critical step when conducting your market research surveys is to make sure to identify your consumer by various characteristics. Age, gender, income, place of residence, education, ethnicity are a few characteristics to think about in your research. By creating a more defined customer profile, you will put your organization in a better position to succeed.
Make it a point to examine your competition, it is likely that they have already done some research on the market. The more you understand how your competition’s approach the better you will be at identifying potential opportunities.
2. Capture a necessary sense of the market.
Nevertheless, evaluating your clients and competitors is not sufficient. You also need to obtain a more in-depth knowledge of the market as a whole to better understand your likelihood of success is in that market.
If you do not do your due diligence, then you may only see the tip of the iceberg and miss out on the more significant opportunity.
Some questions to consider when thinking about the bigger picture;
- How many potential consumers are there for this market?
- What are the best ways to enter the market?
- How are consumers currently reacting to the market?
- What are some of the risks involved?
- What is the potential for partnerships?
3. What are some similar opportunities?
Exploring similar opportunities can provide you with a greater chance to succeed. The Harvard Business Review did a study years ago that composed of 1,850 different companies. What it found was that companies who most sustained, profitable growth pushed out the boundaries of its core business into an adjacent space.
Modern companies like Apple are a perfect example. CEO Steve Jobs saw an opportunity to channel to the same customers when expanded from solely selling Laptops to iPhones, watches, and accessories. The expansion of their products to the same consumers provided them with a stronger foothold in the electronic sector.
The type of mindset necessary to continue to expand and grow is what makes the difference between the champions and players of any particular market.
The list above is only a short list of items you should be aware of when looking to move forward on a new business venture. If you are interested in discussing future ventures with any of our partners please contact us.
We drew inspiration for this article from MarketResearch.com’s’ article, 5 Keys to Conducting a Market Opportunity Analysis