Finding business opportunities....

Hi Dien!

> Being able to find new business
> opportunities is the foundation stone upon
> which many of the most successful
> entrepreneurs have built their careers....

> This is a very important topic.... It's an
> important foundation of success. I also
> think being able to spot good business
> opportunities makes things more exciting!

This is a VERY important topic. One ALL entrepreneurs SHOULD be interested in.

> Is there interest in this topic?

Yes.

However, most people, while they are interested in it, will probably not participate in a discussion about it.

Nor will they DO my challenge.

Or Simon's challenge (wonder how floating a car above the city with a hot-air balloon would go as far as free publicity goes? Can a hot-air balloon support the weight of a car?).

The Reason Why is the same...

It would require them to THINK - the hardest job there is to do.

Not because they don't want to, but because they've never needed to and have been taught not to.

People, in general, have become used to being spoon-fed whatever they want/need to know.

It's too easy to say, "I don't know" after giving it three seconds thought and then ask for the answer.

After 17 odd years of school where you're handed information, told to memorize it and are tested on how much you've memorized, it's no wonder people are like this.

Having said that, let me say this...

"Opportunities" are everywhere.

"Viable Opportunities", while slightly less abundant, are also everywhere.

"Highly Profitable Viable Opportunities", while less abundant than "Viable Opportunities" are everwhere as well.

The trick is distinguishing between the three types.

An "Opportunity" is simply a chance to sell something (product or service).

A "Viable Opportunity" is one that has some kind of proven saleability.

A "Highly Profitable Viable Opportunity" is one that has some kind of proven saleability AND which also has REPEAT SALES. You mentioned Bras 'n' Things... that fits this perfectly - A Lingerie Only store was going great in the US and none existed in Australia, and, lingerie is a repeat-sale business.

You mentioned Solving Problems...

As far as I know, Jack Russel Terriers are near on impossible to train. So training them is a problem all JRT owners would have. To solve the problem you would create a product which assists the JRT owners in training their dog.

To the best of my knowledge, no specific product like this exists, so it is only an "opportunity".

If it did exist and was selling fairly well in one place, it becomes a "Viable Opportunity"... you sell it in your area.

However, that book does not have repeat sales to the same owner so it is not a "Highly Profitable Viable Opportunity".

As a single sale item you may do quite well out of it. But you'd always be chasing new customers.

There may always be new customers... but you're still always chasing them - spending money on marketing.

The most successful and longest lasting successful entrepreneurs are involved in "Highly Profitable Viable Opportunities" in some way.

If "Highly Profitable Business Opportunities" are your bag baby, the question turns from "How to spot them" to "what do people/businesses regularly/repeatedly spend money on?"

Specifically answering that question will provide a rather extensive list of areas you could get in to.

When I say specific, I mean specific. Don't just say "breakfast cereal" say "Kelloggs Corn Flakes" and so on.

And don't stop there, be specific about what the makers of Kelloggs Corn Flakes spend money on - card board, plastic, etc.

Alternatively, don't make any lists at all. Don't look for problems. Don't do anything except ask, "How can I make money out of this" about every ad, story and article you read or hear. The answer is your opportunity.

Now here's an opportunity...

A book on How To Spot Opportunities. The Idiot's Guide To Spotting Opportunities. Spotting Opportunities For Dummies. ;o)

"How can I make money out of this thread about wanting to know how to spot opportunties?" The answer is in the paragraph above.

Of course, the problem with this last method is

It requires you to think - the hardest job there is to do.

And now we've come full circle. HA!

What do you think?

Michael Ross.

Thought I'd toss this in.

The three richest men in Australia (all billionaires) are involved in the following industries...

Media - Network TV and Multiple Newspaper Owner (repeat advertising sales)
Real Estate - Shopping Centre Chain Owner (repeat lease payments)
Packaging - Cardboard Boxes (repeat sales of boxes other manufacturers put stuff in)

As a side note... I bet EVERY member of the Young Presidents Organization http://www.ypo.org/ owns a business that involves repeat sales.

Hi Michael!

> This is a VERY important topic. One ALL
> entrepreneurs SHOULD be interested in.

> However, most people, while they are
> interested in it, will probably not
> participate in a discussion about it.

> Nor will they DO my challenge.

> Or Simon's challenge (wonder how floating a
> car above the city with a hot-air balloon
> would go as far as free publicity goes? Can
> a hot-air balloon support the weight of a
> car?).

> The Reason Why is the same...

> It would require them to THINK - the hardest
> job there is to do.

That's probably true.... especially when the answer won't come easily. Sometimes it can take a lot of effort and time to focus your mind, and really think something through seriously....

But that may be the price of independence!

To me, having this kind of skill is like being able to recognize edible plants, or knowing how to find water when you need to survive....

I don't know if you've seen the film "Cast Away" yet.

In that movie, Tom Hanks washes up on a deserted tropical island, and has to learn how to survive. He figures out how to open coconuts, and that sort of thing. He had to teach himself survival skills. Without those, he would die.

To me, finding business opportunities is like that. What if you lost your job? What if you lost your current business? What would you do?

Knowing how to find good business opportunities (and exploit them) is like having survival skills to survive the modern "urban jungle," while keeping your independence!

> Not because they don't want to, but because
> they've never needed to and have been taught
> not to.

> People, in general, have become used to
> being spoon-fed whatever they want/need to
> know.

> It's too easy to say, "I don't
> know" after giving it three seconds
> thought and then ask for the answer.

Yes, that's true too!

> Having said that, let me say this...

> "Opportunities" are everywhere.

> "Viable Opportunities", while
> slightly less abundant, are also everywhere.

> "Highly Profitable Viable
> Opportunities", while less abundant
> than "Viable Opportunities" are
> everwhere as well.

> The trick is distinguishing between the
> three types.

> An "Opportunity" is simply a
> chance to sell something (product or
> service).

> A "Viable Opportunity" is one that
> has some kind of proven saleability.

> A "Highly Profitable Viable
> Opportunity" is one that has some kind
> of proven saleability AND which also has
> REPEAT SALES. You mentioned Bras 'n'
> Things... that fits this perfectly - A
> Lingerie Only store was going great in the
> US and none existed in Australia, and,
> lingerie is a repeat-sale business.

Excellent point!

There certainly are different degrees of viability of a business....

One business could take up all your effort, and make you very little profit (or even none at all).

Another business will make you work just as hard, but could make you rich....

I've also been thinking about being able to tell the difference between the two types of opportunities (something you've done too). :)

It may be possible to turn one type of opportunity into the other....

> The most successful and longest lasting
> successful entrepreneurs are involved in
> "Highly Profitable Viable
> Opportunities" in some way.

> If "Highly Profitable Business
> Opportunities" are your bag baby, the
> question turns from "How to spot
> them" to "what do
> people/businesses regularly/repeatedly
> spend money on?"

> Specifically answering that question will
> provide a rather extensive list of areas you
> could get in to.

> When I say specific, I mean specific. Don't
> just say "breakfast cereal" say
> "Kelloggs Corn Flakes" and so on.

> And don't stop there, be specific about what
> the makers of Kelloggs Corn Flakes spend
> money on - card board, plastic, etc.

Michael, that's a great approach. You've turned the question around into a practical technique you can use.... :)

> Alternatively, don't make any lists at all.
> Don't look for problems. Don't do anything
> except ask, "How can I make money out
> of this" about every ad, story and
> article you read or hear. The answer is your
> opportunity.

> Now here's an opportunity...

> A book on How To Spot Opportunities. The
> Idiot's Guide To Spotting Opportunities.
> Spotting Opportunities For Dummies. ;o)

> "How can I make money out of this
> thread about wanting to know how to spot
> opportunties?" The answer is in the
> paragraph above.

> Of course, the problem with this last method
> is

> It requires you to think - the hardest job
> there is to do.

> And now we've come full circle. HA!

Heheh! You know Michael.... Creating a book like that did cross my mind. :) I've actually collected a number of different "approaches" to finding business opportunity.... But I want some more experience with applying them myself first....

I've never seen any comprehensive book on this topic, but I think a comprehensive book on it is badly needed. One of the more detailed books I've found on this topic is Innovation and Entrepreneurship by Peter Drucker -- but in my opinion, it's far from comprehensive.... (There are many approaches I've come across which aren't mentioned there.... Though I learned a lot from Drucker's own study.)

However, YOU would be able to write an excellent book on that topic, Michael! You've already written some incredible stuff.... :)

> What do you think?

Michael, your approaches are always practical and exciting. They work!

Thanks.... That was a fantastic answer.... :)

- Dien

Michael,

In regard to the JRT thing...

It could be a viable project. Once you've gathered there names, there's a whole bunch of breed specific junk you can sell those people.

My folks have a Rottweiler, for example. If you look around their office, they've got Rottweiler calendars, coffee mugs, mouse-pads, a T-shirt, and probably a bunch of other stuff I don't know about.

Plus, if you "customized" products... like offered them a "Made for Rottweiler" doggie pillow... especially designed for the joint and stress problems that are specific to this breed... at $129... you could probably pull $8 to $10K a month out of your back-end.

As far as training products, one thing I've noticed is that every breed-specific nut thinks that their breed needs to be trained a certain way.

So, if you did videos that were specific to the JRT, such as 'How to teach you JRT to come, every time you call him' you'd probably do pretty well. And the cost to hit the niche would be likely less than if you attacked dog training in general.

Rare breed fanatics would definitely go crazy over it. But again, you're limiting your market.

The main problem I see is that you're always having to balance between the benefits of a tight niche vs. not a large enough market.

-A.