A big problem which every entrepreneur has to face at one point is bringing something new to the company: a new idea, a new concept or simply redefining a product. The ideal situation would be creating a new product or changing the design of an existing product and passing it on as if it were new. The best example of the last method can be seen at Microsoft who for years has sold software’s as new when in fact the are the same product but with small improvement. In order to grow and bring in profits all companies are constantly in search of new markets and opportunities. They are always on a look out for new opportunities which they can expo it.
Here are the six criteria for finding new business opportunities.
- Opportunity and competition: If you want to find new opportunities on your market the first thing you have to do is make a list of all your competitors and their products. After you have done this you should see some business opportunities and when you do this compare them with the competitors which have almost similar products. These are especially steps you have to take with small business ideas, because you can’t risk too many times without bankrupting the business or just losing ground with customers. Small business ideas need to be verified thoroughly, you have to check out all opportunities and see whether there is a customer basis for you, whether there are ways of attracting more customers or improving products and services without having too many losses, and so on.
- The market and its opportunities: Now that you have establishes a number of possible opportunities it is time to take a look at the market, to analyze it. The key phenomenon which you should be looking for is how fast new companies can enter on the market on which you have your business. You should look at data from at least three years back because this way you can determine weather it is worth the effort, if the market will react in a positive way to your opportunity.
- The team: If you want your plan to be successful you have to have on your team at least one person who is experienced launching new ideas on a market. When choosing this person you have to look for a dedicated person who is excited about you idea, you want that person to be committed to you until the plan is materialized.
- Financial aspects: When you want to implement a new idea or product you have to have an estimation on how much money you need. It is important to do this before you do anything because you have to make sure that you have enough resources and if you don’t where you can get them from. It is a known fact that the majority of entrepreneurs underestimate their costs when it comes to this kind of ideas. The opportunity should not drain the company of money it should contribute to its well being.
- Compatibility assessment: After you have settled the financial aspect you have to take a look at your production possibilities: if you have the right equipment, if you have enough personnel. If you do not have what you need you have to take into account the cost of buying a new plant, hiring personnel and buying the equipment needed.
- Synegy aspect: You have to implement your new opportunity in such a way that it is compatible with your existing marketing and management personnel. It would be great if you could distribute your new product using the same distribution channels.