There are many ways in which a business opportunity and idea is spotted and created. Sometimes the creations of these are ideas are sometimes down to luck, at other times due to creativity and knowledge. Many ideas for a successful business come from people who have experience working in a particular market or industry. This creates many advantages for the success of this idea: it provides a better and more detailed understanding of what customers want, it also helps as the entrepreneur already has knowledge of competitors, pricing and supplier details.
On the other had one disadvantage of this source is that the entrepreneur doesn’t have a fresh perceptive to the industry. An example of this style of start up is Ben Davies he used to be a Quiche and Pasty buyer for Sainsbury. He spotted a gap in the market for an upmarket brand of these types of products and established the brand ‘Crumbs’ Another way ideas come to entrepreneurs is from their regular life encounters, hobbies or interest. Sometimes frustration or bad experiences may present a business opportunity, to do something better, quicker or cheaper then other products already out there. One limitation of this source is that some hobbies (collecting rare tins) may not always have a market.
One example of this style of idea is James Dyson, who invented the first bagless vacuum after his frustration with previous vacuum cleaners. Simply observing what goes on around you can be a great way of spotting an idea. Sometimes one idea launched in one country may work in another, For example Stephen Waring was in the U.S.A attending a wedding, by luck he sat next to someone who ran a household service business. After some market research, he found out that there was no business like that in the U.K, so he decided to launch one himself. It became a hugely successful franchise business called Green Thumb.
I believe that sometimes luck, may to an extent play a role in the development of a new business idea but it’s role is minimal. Luck may have sparked an idea but it takes hard work, knowledge, commitment and determination to fine the best business idea. It took James Dyson thousands of prototypes, failed licensing deals, and countless meetings with distributors before he got his bagless vacuum into Britain. If luck had played a major role in his business idea working, all that effort would not have been needed. Ben Davies previous knowledge of the business world is what caused his idea to be successful not luck. Luck may play a small role in the uncovering of great idea, but when all is said and done hard work, creativity and determination is what makes a business idea thrive.
Courtney from Study Moose