Success in business is based on finding opportunities in even the toughest of situations. In fact, more often than not, difficulties come with hidden opportunities for those who know where to look.
Three things that will help you identify these opportunities are:
⦁ Access to information
⦁ Understanding related issues
⦁ Employing human intelligence
Having identified a business idea, the next step is to analyze its scope and see if it is plausible in the given circumstances.
The way this chain works and how an idea’s worth can be measured is illustrated in the graph below:
Moving on to the practicalities and monetary side of it all, following are the things a businessman should keep in mind when investing their money:
⦁ Economic conditions
⦁ Social conditions
⦁ Legal conditions
⦁ Political conditions
⦁ Technical conditions
Let’s take a deeper look
⦁ Economic Conditions
When we say ‘economic conditions’, we are not just discussing the situation of the government, or public departments.The main group under consideration is your targeted audience.
In order to get a handle on this analysis and to get accurate results, you will first need to define this target audience of course.
Once that has been achieved, take a closer look at their living conditions and spend habits. The kind of things they spend on will tell you a thing or two about their priorities and you can get a much clearer idea of whether or not they will be willing to spend on your product or service.
Assessing your prospect’s buying power is essential and comes first. However, the economic situation of the government is important too.
Consumer spending forms a big part of any country’s economy. Poor economic conditions, therefore, are a reflection of the faith the consumer places in that economy, and should dictate a business owner’s strategy.
⦁ Social conditions:
In the previous blog, we briefly discussed timing of an idea. This is an offshoot of that point. Whenever a new product or service is being introduced, the business owner and investor should pay close attention to where society stands.
Two ways in which an idea is destined to be doomed are:
⦁ If it is too early and society isn’t ready for it
⦁ If it is too late and the market is already saturated
This is why a match with the social conditions of the time is crucial. The right idea presented at the right time will find it very easy to make it to the mainstream and will be supported by the social conditions.
⦁ Legal conditions:
This aspect of the business is clear enough and should go without saying. If someone comes up with a business idea for customized kites when the law has banned kite flying in cities, that business will most likely never make it to the mainstream.
No matter how good your idea is, you as a business owner cannot fight the system. Businesses need legal backing to flourish and so you will need to do your research regarding this.
⦁ Political conditions:
Businesses, especially those that are not primary products or services, generate the most returns in times of peace and political stability.
Value of products, cost production, any import/export or foreign exchange that is involved in production or distribution is based on the state of the native currency and that is in turn linked directly to political stability.
Therefore, starting a business at the time of unrest might not be the best idea.
⦁ Technical conditions:
Technical advancements and general conditions are very important from the point of view of timing. As stated earlier, the world has to be ready for what you’re offering.
For example, there were other video hosting websites that came before YouTube. However, then broadband was not common and so the internet speed in the average house was too slow to load complete videos and so they failed. YouTube’s arrival was paired with the right technological conditions and so it took off and became the huge platform that it is now.
Successful businesses do not just sprout from big investments. There is a lot that goes into it and market research is very important. If one of the above mentioned factors goes against you, all might be for naught.
Success in business is based on finding opportunities in even the toughest of situations. In fact, more often than not, …