Finding a Gap in the Market

Finding a Gap in the Market

1. Business Opportunities

   • Every business begins with an opportunity identified by an individual or a group of people.
     • Most entrepreneurs take this opportunity as a way of making money for themselves by producing a product or providing a service and by finding a gap in the market.
       • However, for social entrepreneurs this may be also a way of helping or providing for others.
   • It isn't enough to provide the same product or service that other businesses are offering.
     • Some businesses try to make them stand out when being compared to the competition, they do this by providing a excellent customer service. However sometimes this isn't enough.
     • Another alternative is to identify a new idea and then turn that into a business opportunity by organising the resources required. The hardest part is finding the new idea.

2. Market Observation

   • Learning from the world around them is an important way entrepreneurs identify new business ideas.
     • They watch what happens between existing businesses and their customers and try to identify ways they could do the same thing but slightly differently or better.
     • They may look at investing in franchises.
   • Entrepreneurs can employ creative-thinking techniques to identify new ideas.
     • They may take an existing product or service and try and look at it in different ways.

3. Market Mapping

   • Market mapping is one way in which business can find 'gaps' in the market - in other words, identify business opportunities that are not currently being pursued,
     • You need to identify the key attributes or variable of similar products or services in their market.
       • Once all the current products are mapped it may become clear where there is a gap in the market- in other words a space on the map where no products currently exist.