FIVE (5) WAYS TO SPOT AND CAPITALIZE ON TRENDS

Question 1

The constant thing in this world is change. Assume that change is coming and look for it. Change can be either social – as in the rise of socially responsible business – or technological, as exemplified by the growth of gadgets. Sometimes change can be both. The great example of it is social media. Don’t forget the cyclical, up-down, back-forth
nature of business while you are searching. Change doesn’t have to be permanent to provide a viable opportunity for business creation and growth. Remember, the nature of
trends has no consistency.

Answer 1

1. Anticipate change

Question 2

The basic tools of the trend tracker are seeing, hearing, smelling, tasting and touching. In other words, every sense that can be used to get information about the world should
be employed in seeing for upcoming changes. Start by reading and watching everything you can. That should include general interest news outlets, trade publications, blogs, government reports and casual conversations overheard in elevators. Be updated of problems people are talking about. Be proactive as it comes.

Answer 2

2. See it coming

Question 3

Strive to identify big changes that create lasting problems that many customers will be happy to pay to solve. The idea is to wind up with a business model in which revenues are larger than costs for a long period, not one that limps by on slender profit margins before competitors take even that away. To filter out fads, talk to the potential buyers of the solution to the problem. The more frustrated they are, the more likely they are to pay for a solution. In extreme cases, potential customers may be willing to fund the development of solutions. With this, it is not hard for you to win them. Another way around is by talking to experts.

Answer 3

3. Distinguish between short-lived fads and long-term trends

Question 4

Again, it’s relevant to talk to target customers. Make sure the solution you envision is one you can realistically provide with features. Costs must establish alternatives will compare
favorably. It is not all about your desire product to proposed, it’s about their problem to be solved. What you can do conveniently and inexpensively may be of little value to
customers. The sweet spot for a trend-exploiting start-up is at the intersection of business. capability and customer’s need.

Answer 4

4. Make sure your solutions are realistic

Question 5

To get the biggest benefit, be the first doer. Be courageous! It is uncommon for any single entrepreneur to be the only one who sees an opportunity. Most will hesitate and not move at all. Many others will not move quickly enough. Lasting competitive advantage usually goes to the first entrant to stake a market out and capture customer loyalty. Those who come later usually have to settle for slimmer profits and more competition.

Being first is not sufficient, of course! Business history is besieged with well-financed start-ups directed by well-regarded leaders who committed too much, too early and in the wrong place. So test before committing. Again, look for revenues that overwhelm costs and customers who are overjoyed.

Answer 5

5. Create a competitive advantage