Business Opportunities…

By | January 28, 2019

Business Opportunities…

What are the opportunities?

Where are the opportunities?

How to Identify the opportunities?

First and foremost thing in establishing an enterprise is to identify the business opportunity. This is the crucial step in establishing a successful business. Half of the task is completed, if you identify the right opportunity, feels many successful entrepreneurs. Therefore, you need to give proper time and thought on this area as this is a very important step.

Before, identifying a business opportunity think about,

1. What are the weaknesses of the existing players ? Can you convert this weaknesses into your strength ?

2. What is the customer base ? What are their expectations ? How you can place yourself differently ?

3. What is the future of the product / service / Industry ?

4. What are the required funds ?

Let us discuss on these in detail…

1. What are the weaknesses of the existing players ? Can you convert this weaknesses into your strength ?

Generally, people tend to go with proven market. It’s a good strategy to go with proven market. However, there may be established players in the market. But, If you analyse the market, surely you will find some short comings or weaknesses with the existing players. Once identified, think whether these can be addressed by you. The weakness can be either product / service, price, delivery or post sales service. It may be anything, which you should convert it as your strength.

2. What is the customer base ?

What are their expectations ?

How you can place yourself differently ?

When you scan the market for such opportunities, some time you may not find any opportunity. It appeared to you that the existing players are serving the customers to a larger extent and you feel that there is no chance of exploring any possibility of filling the gap as discussed above. There may not be any inefficiencies in the present market, you feel. In such a scenario how to go ahead ? If there are no such shortcomings, you have the option of increasing the expectations of the customers. Certainly, some of the customers are expecting more form the market. You need to identify that need, desire of the customers (existing as well as prospective customers) and then asses, can you meet their expectations ? Remember, If, there are expectations there is market. Also remember, if there is no value addition, why should the customers shift to your product / service ? Thus value addition is very important especially for a new entrant.

3. What is the future of the product / service / Industry ?

Before finalising the idea, please, estimate the future market of that product. Don’t forget to estimate whether that sector / industry / product is in the growing sector or not, is it under seasonal business. If the product / service is within the growing sector then, you may invest your time and money in developing a successful business model.

4. What are the required funds ?

Once you finalise the business model, assess the required funds. Primafacie you can estimate the required funds. At this stage it may be too early to estimate the expenses. However,you cannot ignore this at this stage. With your estimation you can judge whether the required capital can be raised by you and who are the other Banks /Financial Institutions to approach for.

You should also assess the cash flows. Whether sufficient cash flow can be generated or not. There will be, some times you need to maintain cash balances for longer time, some times it takes longer time to convert into cash. Regular cash inflows and slower cash outflow is the ideal condition. This will reduce your dependency on Banks for liquid funds. Managing cash flows is an art and the success of the business model depends heavily on this. Even if your idea is the best of its class failure in managing cash flows leads to failure of the business model. Therefore you should give proper thought towards this.

By answering these, you can narrow down the search for a business idea. Try to identify the business on realistic judgment and prosper.

All the best

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