As you all know by now, a viable business opportunity is simply an economic solution to a problem, which customers are willing to buy and with which you can make a profit!

You also know that in order to find business opportunities, you’ll need to talk to people and listen to their problems.  Problems are like diamonds and economic solutions are similar to the process of mining the diamonds – cut and polish them in order to sell them.  You should therefore always look for problems to be solved in your domain of interest/talents/abilities (passion).

There is however a critical step needed in the process before you could turn problems into viable economic solutions. I am sure you have guessed right….. We have to do market research in order to find out (1) if your customers will be willing to buy the solution you are offering and (2) what they are willing to pay for a specific solution.

The first step in our market research process is always the construction of a research questionnaire.  The questions to ask as a starting point will be centered around (1) the solution (product/service), (2) the price the potential customers are willing to pay.  Therefore, you need to start your questionnaire by asking the potential customers (prospects) if he/she will be willing to buy the new economic solution (product/service).  Be very specific and try to explain what this product/service can do for the prospect.  In other words, how it will solve the problem(s) they have.

The second important question to ask is regarding the price the prospect is willing to pay for this specific economic solution (product/service).  In starting to find the “market price” (right price) always begin with a high price.  If they are willing to pay this price, you’ll be able to make a killing.  If they are not willing to pay your “high” price, but are interested in buying the solution, you can now ask them what they are willing to pay.  These answers will give you a very good idea of what the market price should be.  In other words, the “price” questions should be in two phases.  The 1^st question will therefore be as follows:

Question:  Are you willing to pay R x (Test your potential customer’s willingness to buy with the highest probable price) for the specific product/service (provide a clear description) you plan to sell.

If the answer to this question is no, the follow-up question should read as follow:

Question: How much are you willing to pay for this specific product/service? (The answers to this question will provide you with the real market value for your solution.)

The other important critical factor for reliable market research findings, is to make sure that your sample represents the real market out there.  In order to make sure about this, you’ll have to make sure you are not bias in selecting the sample members, and also make sure that the sample size is big enough.

(If you are an EBS student and you are confident with the sampling process re-visit the section “How to determine that your sample represents the market segment “, in Module 3 of your study manual).

The ability to present reliable market research findings, to a possible investor, is often the only concrete evidence an entrepreneurs, without sufficient security  can provide.  If you can prove that a product/service will sell, you will make it much easier for an investor to give you a loan!!

You ability to think strategically is of utmost importance in order to grow your business from small to big. The ability to think strategically is not rocket science; it is simply something you have to do, if you know how to do it.

Strategic thinking is, simply, the process of looking at the bigger picture surrounding your business. You must make a habit of scanning the various “external environments” (economic, political, social, legal and technological) by looking for opportunities, as well as for threats. You will be amazed how many new opportunities you’ll see when you start focusing on the various external environments. In this exercise you must get rid of old and vested paradigms. You should therefore always challenge your assumptions, as they present your current belief system (Paradigm). You will, as a matter of fact, also become aware of possible threats, which will enable you to make plans to counter them before it is too late. In countering threats, it could be necessary to change direction and/or diversify by adding new related products/services.

If you have to change direction and/or diversify, always remember to do it within your domain of passion and interest. You will also see when you start focusing that there is never a shortage of new opportunities.

You must also remember that business opportunities are viable solutions to problems, and as you know, problems are everywhere, begging to be solved.

The second part of strategic thinking will be driven by a focus on your business and business processes, as well as on your competitors. In this focus, you’ll be looking at strengths and weaknesses. Always search for possible ways of building on your strengths and eliminating your weaknesses in relation to your competitors. You must also never forget to do the same exercise with your customers in mind. Always strive to eliminate the weaknesses of your products/services and to build on their strengths. You’ll have to do this on a continuous basis in order to provide a better solution for your customers.

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