Looking for gaps is key to creating business ideas
I am somewhat skeptical of these programs since I believe that entrepreneurship is not something you aspire to, but rather a part of who you are, almost a condition.
This condition has levels of severity; from mild curiosity about pursuing an idea to “never having heard an idea you did not like.” Someone should develop a 12-step program to try and teach some of us to control the constant urge to solve every perceived “gap.”
What do I mean by gap? It comes from the following idea: An entrepreneur is an individual who is driven by a passion to search diligently for gaps in current products or service offerings, is willing to break tradition and has the tenacity to fight through the process with a measured regard for other’s opinions.
The basis of a gap analysis is looking for enough differentiation from the status quo, but not too much. A vision must be unique, but not too far ahead of its time.
Conversely, if the product or service is not different enough individuals will find themselves fighting the existing industry inertia, and separating themselves from the pack.
Company of one
Fourteen years ago, I joined a small, primarily commissioned-based firm with the intention to eventually purchase it one day. Although my degree is in business finance, at that point in my career I had not worked directly in the industry,
Shortly after I started working at the firm I began analyzing the current processes being used in an attempt to understand what decisions were being made on all levels and why.
My first six months were driven by the question, “If I were my only client, what decisions would I make?” This turned out to not only be an appropriate question for the benefit of my clients, but it was also perfect for my gap analysis. And it led to my deciding to start a company.
Anyone can use this same process, and most entrepreneurs automatically do so. Take yourself through a series of short questions. They will allow you to make observations about your industry and arrive at the answer to the original question.
If your answers differ from the typical business model in your industry, you’ve found a gap.
1. What are my current and potential clients searching for?
2. What services/products are currently available to my client?
3 . What is wrong with the current offerings?
4. How do you fill the gap in the current offering?
Keep in mind that your general observations shouldn’t necessarily be an indictment of every professional in your industry. You’re simply looking for a gap.
Once you identify the major gap, you can probably recognize other services or products that are missing in your industry, and weave them into your business model.
Maybe your clients need a proprietary software application. Maybe you can develop a client mix that is more favorable to your firm than the typical model.
Maybe you can use third parties to handle some of your services, for less cost to you. Maybe you can separate different service areas within your firm, creating greater depth in each for the client.
Finding success as an entrepreneur requires striking a balance between identifying a service/product that is different from what’s currently being offered, but that is not too extreme to the point where it would be difficult to attract clients/customers.
Keep searching for the gaps, by asking that crucial question: “What does the client want that isn’t available now?”
