The Opportunity Model
Where do I start?
Aspiring entrepreneurs and students often ask “how do I go about finding and developing an opportunity”? My answer is look for a problem, in every problem there is an opportunity. A wise man once said, ” problems are opportunities in work clothes.”
The key to making a problem an opportunity is to find a commercially viable problem (a problem that needs to be solved and is ready to be solved). My 5 step process will help you find and develop an opportunity it is a process I developed and used in my career as a successful entrepreneur). The steps are:
- Find a “commercially viable problem” (one that both needs to be solved and is ready to be solved).
- Create a solution to a “commercially viable” problem (a product and/or service) that is unique (a strong competitive advantage). It must also include an effective method of distribution (the selection of a distribution channel is second in importance to positioning the product and or service) and creating awareness (making your potential customers aware of your product and or service and why it is special is critical and can be very expensive and challenging).
- The solution must be sustainable (patents, trademarks and first mover advantage are all helpful).
- The solution must be profitable (long-term).
- Build an effective team.
Step 1: Finding a commercially viable problem
It is important to first realize that there are always frustrated consumers that have problems that need to be solved. Learning what these problems are can be done either by personal experience or observation. One of the oldest sayings in marketing is “find a need and fill it”. In other words, if you find a need that is not being satisfied, you will a problem not being solved whose solution (product and or service) may provide an opportunity. I have underlined the word may because not all problems that need to be solved are ready to be solved commercially (the demand for the product and or service must be great enough to earn and sustain a profit).