Finding potential for business is similar to discovering an archeological find. It requires precise digging and a thorough analysis. It could involve looking at the size of a market, determining whether there are competitors already operating, or discovering that an issue exists that could be solved. It could even require a prototype or pilot test to determine the viability of an idea.
The classic definition of an opportunity for businesses includes two key components such as a need or desire that isn’t being met and the capacity to meet that need by offering your product. These needs may not be fully articulated and recognized, as in the case of a new technology, but will eventually be reflected by the demand of consumers. For example, Odor Trace developed a system that enables law enforcement and security firms to train their K9 bomb detection dogs with fake explosives instead. This is an innovation that addresses a need for more secure and effective training.
There are several ways to find business opportunities, which include conducting market research, networking, and watching consumer behavior. You can also ask your friends and family about their needs, visit online forums like Reddit or Quora or look through newspaper articles and trade publications to find leads. The more you do, the better your chances of identifying a new business are higher.
If you’ve found a potential market, it’s essential to assess the market to determine if there’s a demand for your product. The next step is to formulate a plan for how to implement your idea.