You have discovered a notable market inefficiency
It’s no surprise that the best ideas are generated when there is a problem you can solve. These Meaningful Business Opportunity can be identified by looking within your community or using what you have personally experienced.
These methods are valuable because they allow you to identify the issues you are passionate about. Your business ventures will be more warmly received and have a greater impact.
Find successful business models in markets similar to yours
Alex Cruder, Curbie’s CEO, was kind enough to talk with me recently. He advised me to pay close attention to models and products that are successful in similar markets as yours, but not currently available in your region. These concepts are more risky than novel ones, so look for ways to bring them to your local market. Online car dealerships have been a success in the United States. This business model was not yet available in Canada. Amazing growth was achieved by bringing a successful idea to a new market.
An innovative approach to an old idea
Raffi Amit, a professor of management at Wharton in 2009, shared this example of how digital entrepreneurs can develop winning ideas. It was a platform that allowed buyers and sellers to connect directly.
Although eBay’s description of itself as a virtual flea market doesn’t sound very unique, it is a key part of its success. It used a concept that was already well-known and understood by people and made it available to the digital world. The same concept has been used by many other brands. Rapid growth can be fueled by the ability to digitize and otherwise streamline a high-demand concept.
People are asking for it.
No matter if you are a business owner or a worker in a 9-to-5 environment, you have ample opportunities to interact with customers. You can gain more insight into the market through direct customer feedback, buying trends, and other requests.
You have the opportunity to act quickly
Market research is important but not the only thing that matters. The most valuable business opportunities are those that allow for rapid launch and iterative approaches. This allows you to quickly respond to market disruptions, pivot and better serve your customers with the winning idea.
You can also be the market leader by being the first to market with a certain idea. McKinsey’s evaluation of drug launches found that the average product on the market retained 40 percent 10 years later. The market share of those that came fifth or later was only 10 percent.