Discovering business opportunities, in itself, does not create value. To achieve the benefits, you have to choose to pursue the opportunities and take steps to exploit them.
This makes recognition and exploitation of opportunities distinct, but consecutive steps in the entrepreneurial process. Both steps are necessary for creating business growth.
How to exploit business opportunities?
Begin by identifying new business opportunities. You can carry out a SWOT (strength, weaknesses, opportunities and threats) analysis to help you find favourable options.
You can use our SWOT analysis example to help you with this.
Don't cast your net too widely when searching for opportunities. Use a targeted approach to preserve time and resources for options with the greatest potential for return.
Monitor your competitors closely - identify areas they don't operate in and find out who they sell to - these are potential customers for your business as well. Examine their product range or the services they offer, check out their marketing and investigate their pricing. A competitor's poor performance could create an opportunity for your product or service. Find tips to help you understand your competitors.
Anticipate a market need for a new type of product or service - for example, new legislation can create opportunities for business consultants or advisers. Events like mergers and acquisitions may open up prospects for all types of services and trades. See how to increase your market share.
Explore new markets - looking beyond your sector or established market can open up business opportunities. Use market research and market reports to analyse new opportunities and diversify your sales channels to reach your customers.
Consider working in partnership with other businesses that offer complementary services to yours or target similar customer groups. This may help extend your market reach, allow you to pool resources and negotiate better deals with suppliers. Find out how to create growth through strategic partnering.
Discover other strategies to improve sales and profitability.
You will need to manage any business opportunity you decide to pursue. Be careful that you don't develop the business beyond your means. Have a clear plan for growth and the necessary resources, capabilities and technologies to make the most of the opportunity. Securing too much new business, without being able to deliver on it, could put your company at risk. Read more about risk management.