In the current business setting, sustaining development and an increase in profits is anything but an assurances. Resources, technology, and scientific advancement enhance the quality of products and business models as well. Fresh competition appears everywhere and even beyond the traditional borders with new players coming into or crossing into your territory. This continuous uncertainty makes it imperative to explore new business possibilities and squeeze out every bit of value and revenue for your business. In this informative article, we identified seven strategic ideas on how to unlock hidden business revenue opportunities.
To begin, it’s crucial to define a solid framework to help you find hidden business opportunities. You have to bear in mind that it's critical to be aware of your organization's business goals and know the tools, strengths, and capacities of your business.
When you have an excellent understanding of your company’s business directives, directions, goals, areas of skills - another move is to examine the sector and assess consumer requirements and how it’s being increasingly hit and targeted by companies nowadays. As a way to discover market options, the enterprise businesses must undergo evaluation by assessing companies and consumers and other aspects such as in-direct and direct competitors, brand price propositions, offer chains, current regulations, and the global environment. Let's examine just how exactly to dissect the factors to find hidden business opportunities from the following analysis:
7 Powerful Ways to Unlock Hidden Business Revenue Opportunities
1. Analyze Demand and Client Segmentation
To fully comprehend your demands, you should establish a consumer segment that shares the same characteristics. These characteristics may be considered "hard" factors or variables that are usually defined as gender, age group, educational level, area of residence, occupation, and income level. There are also "soft" factors such as human lifestyle, habits, attitude in buying, values and tradition, and buying motives.
These "hard" factors are beneficial when it comes to estimating the range of prospective customers a firm can acquire. Let’s say, for instance, a diaper manufacturer ought to be aware of just how many toddlers under the age of three reside in a particular country and the birth rate. "Soft" variables may help you identify the motivation that will eventually lead to buying decisions - for example, prestige, value for money, pricing, usefulness, design, and how durable the product is or quality.
2. Situational Purchase Analysis
Purchase circumstances should also undergo thorough analysis to unlock expansion opportunities. Essential questions that can help when assessing buying idicators are:
- When is the usual time people buy the service or product?
- When is it considered as a need?
- Is it essential?
- Where does the consumer usually purchase the product?
- What are the usual payment methods?
Take into consideration the distribution channel and all other circumstances, especially the payment options. In that case, demand for acquiring purchasing decisions can educate you on the way shoppers purchase and ways in which you can upsell and position your services or product correctly.
3. Competitor Analysis
Other than analyzing purchasing and demand behaviors, it's crucial to note other suppliers and competitors in the space. Realizing the existent “players” in the industry that you're competing in or direct business competitors in the area is essential when assessing business possibilities. Some helpful questions you can reflect on are below:
- Who are the successful brands and in-demand products in our industry?
- Why are the other products and brands growing significantly?
- What's the value proposition of my competitor?
- What are the competitive advantages our company has compared to them?
4. Indirect Competitor Analysis
To find hidden business opportunities, you must start analyzing the replacement industry as well. Take this for example, because of the decrease in the cost of airfare, airline companies may start looking for potential opportunities with users utilizing other forms of transportation. Air carriers do extensive research on how many travelers on vacation take long-haul bus rides and trains. Some important questions can be the ones from below:
- What routes are the most convenient and in-demand, and when are the usual travel dates?
- How many travelers shoulder their own ticket costs rather than their company, and how much are they paying for it?
- What can you do to persuade consumers to travel by air rather than by land or sea?
- How much is the customer paying for alternate means of travel, and how long does it take? Will the additional expense be worth covering the convenience and faster travel time?
Indirect competitor analysis helps demonstrate a competitive advantage against indirect competition and presents added opportunities for business growth.
5. Investigation of Complementary Merchandise and Services
Organizations should be monitoring the performance or sales of other businesses' products that can be complementary to their particular segment. Here is an example - a packaging company that needs to track the sale of its product that it may potentially package will be interested in the packaging space. In comparison, an organization producing machinery for coffee production must collect insights about the development of distinct kinds of coffee earnings. Developments in complementary industries ought to be taken into account every time you need to make an investment decision.
6. Forex Exchange Market Analysis
When a business is operating in a mature or saturated market, exploring other states may create additional opportunities. Trade with various countries expands for several different reasons, which includes disparities in the amount of economic improvement and local habits. Understanding the development of each capital requirements of certain products in a given nation can indicate maturity of the product's life cycle. Getting insights on how big the industry and competitors in different countries may help you to estimate the opportunity of this type of engagement.
In regards to the marketing and selling of a product, you might research what the results are in more complex countries when it comes to their usual consumption. Questions might include:
- What’s the average percentage of folks using their cellphone to pay when shopping?
- What's the industry share of a personal label in a particular sector?
The answers found in developed nations around the world may serve as pointers of the possible movement of the market in their area. In comparison, tracking exactly what could happen in different countries causes new services to potentially be available but still be unique to your country's current market.
7. Analyzing the Environment
Market possibilities are also identified by analyzing the change in the surrounding technology and scientific advancements to identify new business opportunities. The rise of the web and smartphones' insights has empowered organizations with fresh business ideas such as Uber, Grubhub, and Airbnb.
Additional changes in the environment like climate change, economic movements, and fluctuations in financial institutions additionally influence current market opportunities. It's critical to consider applying market analysis to add insight into your business surroundings, guaranteeing that your developed strategies will flourish in a brand new, growing marketplace.
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David Finkel is a WSJ Best Selling author and has written 12 business books, including his newest release The Freedom Formula. He is the co-author of Scale: Seven Proven Principles to Grow Your Business and Get Your Life Back (written with Priceline.com co-founder Jeff Hoffman), and a respected business thinker. Finkel’s weekly business owner e-letter is read by 100,000 business owners around the world each week. Finkel is the CEO of Maui Mastermind, a business coaching company. Over the past 20 years, Finkel and the other Maui coaches have personally scaled and sold more than $2 billion worth of businesses.