Ways of identifying an Opportunity

Let’s take a look at three ways to identify an opportunity.

1. Observing Trends
Economic factors, social factors, political action, regulatory statutes and
technology advances are the most important trends to watch. You can follow and
study them closely on your own or you can pay independent research firms to
provide you with customized trend forecasts and market analysis.
Economic factor: When incomes are high in a particular group or there is
disposable money available, people are more willing to buy products and services
that enhance their lives. A great example of this would be the teen and pre-teen
market. When kids have money, they buy stuff. Products and services such as
designer clothing, downloadable music services, new smart phones and all the
other things that these kids buy are a huge market and therefor have opportunistic
possibilities. Another gigantic market is the aging baby boomers. These folks have
spent a lifetime saving money and preparing for their retirement and they have
disposable income.
Technological Advancement: Understanding social factors and the impact it has
on trends if a vital piece of the puzzle. It is not a big secret today that people are
busy and don’t have enough time during the day to get everything done that needs
to get done. This provides opportunity for products and services that relieve stress
and the burden of being overwhelmed by everyday life. Here are a few categories
that could provide opportunities related to social factors:
1. Family and work patterns
2. The age of the population (baby boomers, etc..)
3. Increasing diversity in the workplace
4. Increasing focus on healthcare and fitness
5. Computers and the internet
6. Mobile technology
Advances in technology co-exist with social factors and economic factors to create
opportunities. Technological advances can provide opportunities to help satisfy
basic needs in a better, more convenient way. Once new technology is created, new
products to advance it are usually not far behind.
Political action and regulatory changes: will also provide opportunities for the
entrepreneur. New laws, political instability and global terrorism have all provided
business opportunities. A good example for this would be the need for more and
advanced security for companies and governments looking to protect physical
assets and intellectual property from attack.

2. Solving a Problem
In the quest to recognize entrepreneurial opportunities, one must find a problem
and solve it. You can find these problems through observing challenges people
encounter in their everyday lives, by intuition or by chance. A large amount of the
problem solving that goes on is a result of personal problems or challenges that
someone has in their own lives. Haven’t you ever thought to yourself that there has
got to be a better way to do the thing that is aggravating you? Well, maybe there
isn’t a better way (Research it.). That is an opportunity. A constant trait with
entrepreneurs is that they are always looking for problems, or should I say, always
looking for opportunities to solve a problem.
3. Finding Gaps in the Marketplace
Finding gaps in the marketplace is the third way to identify an opportunity. It
involves the ability to recognize a need that is not being met in a customer’s life.
These gaps can be hard to identify but can be potentially very rewarding. This is
the world where the niche market lives. Giant superstores have become a staple in
our lives and try to have just about anything and everything our hearts desire, but
the reality is they can’t possibly do that. A niche market is a place within a larger
market that represents a narrower group of people with similar interests. It covers
the not so usual products in a boutique shop, to the service that doesn’t even exist
yet.
Opportunity is the word and you should always be on the look-out for it.
Remember… capitalizing on opportunity is one of the things that made this
country so great and it is why people from all over the world want to come to
America. Without the chance of opportunity, there is despair. *