TO THE SEARCH FOR OPPORTUNITIES TO CREATE NEW BUSINESSES

Accelerate your business with these tips on "On the lookout for start-up opportunities". Analyse and discover this TIP!

The companies you know have not come into being by chance! All companies were born small and there has been one person, named entrepreneurwhich identified a business opportunity and was able to execute all the necessary steps to turn it into a companyThis is the main function of the entrepreneur at the beginning. In turn, a business opportunity arises from an imperfection in the market, or in other words from an unmet or at least not well met need, all the people who have the same need form your customer segment.

And we have already learned to identify needs (+). A business opportunity is essentially a market imperfection, Therefore, we must look to identify an imperfection in our environment..., an unmet need, unresolved frustrations... if we are able to develop a solution to that imperfection we will have found an opportunity.  

• If we examine our unmet needs and those of those around us, we can find many opportunities: 

• • E.g: 

• • • For bad cooks.
    • Solutions: semi-prepared meal with instructions and all ingredients.

• Discovering a new way of solving a problem or satisfying a need.
• There are simple and on paper lacklustre ideas that later turn into profitable businesses thanks to the execution carried out by the entrepreneur. 

• • Ex: 
    • Bread oven, 25 years ago in mentorDay's acceleration programme a girl wanted to start a bakery... today it employs more than 500 people.
    • Alumni: Bread ovens.

• Modify a product, so that it serves a different user group. 

• • Ex: Levy Strauss & Co. 

• • • The origin of the jeans we all know today is that someone discovered the resistance of the fabrics of the gold diggers' carts and put them to a different use.

In the end, everything emanates from a dynamic environment that triggers such opportunities in various ways. Changes in the environment, the appearance of new technologies, etc. In this TIP we give you tips on sources of opportunity for you to practice. We hope you find them useful in the process of identifying business opportunities.

INVENTIONS

These are innovations that often have a highly exploitable business dimension. Typically, inventors lack the skills that an entrepreneur can provide. You would be a perfect partner for the inventor puts the know-how and you put the execution part to create a good promotion team (+). Thousands of patents are published every year, the promoters of which are unable to bring to market. This is an excellent source of opportunities. Beware that many patents have been created with their backs to the market and therefore do not respond to real needs and have no commercial value!!!

In 2017 there were 1,887 Spanish patent applications at the EPO, the European Patent Office, which confirms year-on-year growth of around 7%, well above the European average. For more information on patents registered in Spain, you can go to Official Industrial Property Gazette (BOPI)The Patents and Utility Models section of Volume II, which is accessible on the Internet and published daily, except on weekends and public holidays.

CHANGES IN AGE PYRAMIDS: 

The ageing of the population in Spain, Japan and other European countries is a source of opportunities for age-related businesses: Home assistance, home pharmacy service, residences, telematic control systems for the elderly, household appliances, physical exercise, leisure, culture, etc. 

From Another point of view is that adapted products can be developed such as household appliances or smartphones with larger keys and/or knobs for people who see poorly up close. The youthfulness of the population in Africa generates excellent opportunities.

CHANGES IN LIFESTYLES:

New ways of life offer exciting opportunities. Such is the case of the digital nomads (+) that offer their services to companies located anywhere. In turn, The temporary places of residence of these nomads have the opportunity to offer them all kinds of services: aaccommodation, leisure, restaurants, culture, etc. Ready-made meals, freshly squeezed juices, home-connected gyms, are the answer to needs such as lack of time for cooking, the need to take care of oneself, geographical mobility, etc. 

Growing concern for the environment has given rise to the birth of businesses related to recycling, or that seek to prolong the useful life of a product through online sales. In the circular economy they generate new customs where many opportunities are emerging.

• The growing tendency to eat seasonal and locally produced and/or healthier and/or quicker to prepare products
• A boom in freshly cooked, healthy, takeaway food is on the rise.
• The shift to reducing animal fat intake will lead to the need to
• Having few children leads to very different needs from those of large families.
• Switching to alternative energies creates new opportunities for panel installers, maintenance...

Renewable energies have a preponderant place given the lower cost of equipment in recent years and the support given to them by the administrations. The existence of COVID causes the need to buy masks. The increased use of electric cars means that charging points are another source of future opportunity.

Collaborative economy

Collaborative consumption, timesharing, hotels by the hour, holiday rentals, home exchange, new forms of urban mobility, etc. These are new habits that are gaining ground and giving rise to offers such as Uber, AirBnb, etc.

• Single-family homes

NEW DEMOGRAPHIC OR MARKET SEGMENTS

New customer segments appear periodically, either because there are changes in demographics (increase in the elderly population, new social classes, etc.) or, simply, because a segment that was not representative becomes important (classes without access to certain products that have seen their economic situation improve greatly in recent years)... and the recognising their existence and analysing their specific needs is often a good starting point for new business.

TECHNOLOGICAL INNOVATIONS

A The opportunities range from the emergence of new professions to the creation of applications of all kinds. The cloud, blockchain big data, videoconferencing systems, etc. These are some examples of what technology represents as a source of new business. The simultaneous translation pursued by Google meet, or ZOOM, eliminates the language requirement and will offer great opportunities for doing business between countries. Special attention needs to be paid to the rise of online commerce, which is constantly growing to the detriment of traditional commercial formulas. 

One of the fastest transforming elements in markets is the emergence of new technology...., because, if we make a good analysis, we will find dozens of opportunities that can accompany it. This has happened with products such as the iPad (which has led to new educational, health, entertainment or professional uses) or GPS technology (which beyond navigation has revolutionised, for example, the world of sport). (see TIP innovation and entrepreneurship)

URBAN SPRAWL

The rise of teleworking has generated new needs for more time at home, alone, eating at home... and, these changes of style, facilitate new opportunities in uninhabited villages, people who eat at home, or need to socialise or... think (I recommend you to talk to nomads and ask them what they need now with this new lifestyle). The movement to the countryside by occupying uninhabited villages creates new needs... Lhe expansion of urban centres offers new business opportunities for attentive entrepreneurs.

FIX THE QUANTITY OF NEW SERVICES: of new services:

Laundry at home (look at the success of our alumni Mr JEFF), motorbike taxis, 24-hour childcare, shops of all kinds. New settlements call for new proximity businesses without forgetting the possibilities offered by growth in e-commerce, thanks to improved customer acceptance and trust and reduced logistics costs. The rise of e-commerce is creating a growing need for companies to provide logistics services.

WELFARE, CULTURE AND LEISURE

The increase in personal image care makes it necessary to hire gyms or personal trainers or skin scanners who prescribe creams for you.... The need to acquire more digital skills means that there is a need for more short, online micro-learning courses. Further training requirements: masters, language schools, summer camps, video programmes, interactive software, e-learning.

The boom in adventure tourism or active tourism is leading to more demand for bungee jumping, rafting, trekking, paddle tennis... white week, blue week. People have more and more leisure needs and spend more and more money on leisure, which opens up new opportunities.

OTHER SOURCES OF BUSINESS OPPORTUNITIES: 

The appearance of a new volcano (as in La Palma, which has destroyed thousands of houses) generates new needs which give rise to business opportunities, rapid construction of houses, soil decontamination, psychologists... sale of volcanic ash, cultivation of the new land gained by the lava, tourist trips to visit, volcanology study centres, 

COVID has affected many sectors, tourism and hospitality, but has generated many opportunities.

• Hobbies and interests: many entrepreneurs decide to turn their hobbies or interests into a business. In my opinion, the moment you turn a hobby into your job, you gain work but you lose your hobby.

• • Ex: Diving or paragliding schools, boat hire, bonsais, handicrafts, etc. 

Finally, we suggest some other ideas:

Booking tickets, babysitting for one night, plumbing or cleaning your flat, price-hunting, searching for lost dogs, mobile phone rental. take advantage of the shortcomings of public services. Security, courier and express transport companies. Management of traffic fines, filing and custody of documents, air taxis. 

FINDING UNDERSERVED (OR OVER-SERVED) CUSTOMERS

The basis for the creation and exploitation of a customer niche is to identify a group of customers whose needs are only partially met, i.e. although they can cover the basis of their problem they are not happy with how their specific needs (usually derived from the fact that they are a "tribe" or niche) are being addressed.

For example: eco-conscious customers, pet fans... etc.). 

Similarly, there are customers who consider that the current market offer is "too much" for what they need, and would be happier with a cheaper offer but with better prices (as is the case with low cost airlines).

LOOK FOR INEFFICIENCIES OR IMPERFECTIONS IN THE MARKETPLACE

That is to say, look for aspects in the markets that can be improved and allow customers to take better advantage of your products or services. This involves, for example, increasing the information available to the customer to make better decisions, making it easier to obtain a product or service by improving access to it, optimising processes to make the relationship faster, etc. 

In other words, fix something in the market that customers tell us is not working well enough (e.g. hotel price comparators exist to facilitate an inefficient process for their customers, the search for the best price among hundreds of options).

SEARCH FOR UNRESOLVED FRUSTRATIONS

This is possibly one of the most powerful elements in identifying viable businesses, and I'm not just talking about "needs" but aspects of day-to-day life that make a customer feel frustrated. (what differentiates a need from a frustration is its level of intensity, the higher the level the more likely the customer is to be willing to pay).

It is often the source of "aspirin" type products, and these frustrations are usually best identified through personal experience or that of someone close to you who suffers from such frustration.

NEW LEGISLATION OR POLICIES

The emergence (or disappearance) of regulations, laws or policies is often the germ of a large number of products and services that are either "palliative" and facilitate adaptation to the law or are vaccine products that, thanks to their contracting, we can avoid future pain. They require being very alert to the emergence of new regulations and reacting very quickly once they are launched. The new European funds generate new opportunities in those sectors that will favour the sectors or axes on which they are going to focus... The hundreds of products and services that have been used to adapt to personal data protection regulations or regulatory changes in the field of photovoltaics are good examples.

CHANGES IN COST STRUCTURES

Sometimes as a result of large-scale production of a type of product (as has happened with mobile phone components) and the cheapening of the resources required or the adoption of a new technology or technological approach (e.g. the use of "cloud" applications), situations arise that make viable products or services that were unthinkable a long time ago or that were only accessible to the higher end of the market. These types of new business opportunities allow you to transform non-customers into customers.

POSSIBILITY OF REMOVING TRADITIONAL BARRIERS

We often have many ideas in our heads that we don't give a second thought to because our way of understanding the world or the way things work now make them unfeasible. In order to truly assess whether these barriers are an insurmountable problem or just a challenge, it often works to ask yourself questions such as:

• "If I had a magic wand, how would I solve this problem?"
• "What rules established in the market or industry are so 'just because' that no one questions them?"

INCORRECT COMPETITIVE VARIABLES IN SATURATED MARKETS

Sometimes when we are competing in a saturated marketplace (characterised by the fact that the customer is only concerned about price, does not value new features and competition is becoming more and more intense). the best idea is to rethink whether we are "fighting" the right battle.

For example: in the case of the insulin market, years ago all laboratories competed on the "% purity" factor when for the customer the product was already good enough, and therefore only the price was a concern.

Then, one of the players, Lilly, realised that what mattered was no longer purity but convenience of application, and developed self-injectable pens that made it much easier to use insulin.

THINGS THAT WORK ELSEWHERE

An excellent source of business ideas comes from travelling. and visiting other regions, countries, different cultures.

For example: the back care shoes are inspired by the flip-flops worn by the Maasai (nomadic people in Africa).

Travel is good not only because it opens your mind and exposes you to new environments and people, but also because it is common to discover that something that works in another city / country / continent can work in your market, or the opposite, something that works in your market can work in another country. (as has happened with the rise of churros in China). In this article you have 86 business opportunities that could work in Spain. The programme of softlanding (+) organised by the mentorDay accelerator helps companies to find opportunities in other countries and adapt their business models to succeed in their internationalisation.

Tips for identifying opportunities:

• Get in touch with creative people: identify people who stand out for their imagination and creativity. Tell them your ideas and ask for their opinion, listen to their concerns about needs or problems that may arise, etc.
• Attend events: don't miss the trade fairs you can attend, product presentations, conferences, seminars, workshops, courses, etc. and above all networking (+) with other entrepreneurs.
• Read publications: the media in general, newspapers, magazines, trade publications, websites, blogs, newsletters, are very interesting sources of ideas. I recommend that you create Google alerts on topics that interest you in order to find opportunities.

To see an opportunity, you have to be very active and with your eyes open!!! An entrepreneur is like a surfer who is active in the water (not lying on the sand) watching the waves to seize the opportunity. If you were lying on the towel you wouldn't have time to catch the series of waves when they arrive. Changes in the environment favour the emergence of opportunities: regulations (time and attendance control), new technologies (5G will allow for new services), the growth of a neighbourhood...

The active listening (+) and being vigilant is the key to seizing every opportunity. The search for business opportunities is one of the skills you need to develop as an entrepreneur. We recommend this very simple exercise that explains how to move from an idea to an opportunity. Use creativity to write a long list of 30 business ideas. What can we do with a watermelon? And then, for each idea, try to see the need you can fill, the market segment you are targeting and the solution we could provide. 

Each of these tips can help you identify new opportunities on which to build your new business, but remember that the opportunity you find is only a "candidate" idea, you still have to validate the assumptions on which your idea is based, get out there, talk to customers and see if it really is something worthwhile, because remembers this requirement:

Don't sell what you can build. Build what you can sell.

How can I identify business opportunities?

TO IDENTIFY BUSINESS OPPORTUNITIES, IT IS ADVISABLE TO FOLLOW THE STEPS BELOW:

1. Observe your surroundings: pay attention to what is happening in your environment and the needs of the people around you.
2. Analyse the market: study the market you would like to enter and determine if there is a need or problem that can be solved.
3. Analyse the competition: studies the competition and looks for opportunities for improvement or innovation in its product or service offerings.
4. Brainstorm ideas: brainstorms with a group of people to generate new ideas and solutions to identified needs and problems.
5. Conduct market research: conduct market research and data analysis to validate the feasibility of your idea and to understand the demand and preferences of potential customers.
6. Identify your strengths and skills: identify your strengths and skills and think about how you can use them to take advantage of a business opportunity.
7. Be creative and innovative: thinks of new ways to solve needs and problems and looks for opportunities for innovation in the market.

Remember that identifying a business opportunity is not enough to succeed, it is important that you also have a solid plan and a well-defined strategy to effectively implement your idea.

Recommendations for identifying business opportunities

HERE ARE SOME RECOMMENDATIONS TO DIENTIFY BUSINESS OPPORTUNITIES:

1. Research the market: analyse current and future trends in the industry you are interested in. Identify unmet market needs, problems faced by consumers and untapped opportunities.
2. Look at your own experiences: think about the problems you have faced and the solutions you have found. You may discover a business opportunity based on your own experience.
3. Talk to others: talk to your friends, family and colleagues about the needs and problems they face in their daily lives. You may discover a business opportunity through their experiences.
4. Watch the competition: analyse your competitors and how they are meeting market needs. Identify possible opportunities they may be missing.
5. Identifies new technologies: The emergence of new technologies and changes in the way people interact with them can create new business opportunities. Stay informed about the latest trends and emerging technologies.
6. Carry out proofs of concept: Before investing too much time and money in an idea, do concept testing to validate the business opportunity. You can do this through surveys, interviews, prototypes or small tests in the market.
7. Stay flexible: Once you have identified a business opportunity, keep an open mind and be flexible as to how it develops. You may need to pivot and change direction depending on the needs of the market and your customers.

Remember that identifying business opportunities requires a good dose of creativity, curiosity and observation. Don't be afraid to think outside the box and experiment with new ideas.

SEARCH FOR BUSINESS OPPORTUNITIES USING ARTIFICIAL INTELLIGENCE (SEE+ TIP)