First Step Marketing

Copy others

A successful business in an unsaturated market may sometimes be copied. However, it must be copied well: there is a real risk that you will neglect to copy one or more important elements of the original success. Remember that successful small businesses tend to attract clones, so it is likely that other people will take advantage of the opportunity. An increase in competition drives down prices, and profits begin to fall. If this happens, the business may only exist for a short time. A good example of this ‘copycat syndrome’ was the hot dog trolley business. Profits were good for a year or two, while there were few competitors. With the flood of new entrants, however, most vendors now generate only a very modest profit.

Even if market conditions are favourable, a straight copy is seldom a recipe for success. If you decide to copy another business, try to improve upon it, so that the business is differentiated from the original. This will promote a competitive advantage over the original business, and keep it ahead of other ‘copycats’.

Check foreign products

Overseas products which are unavailable in South Africa, can often be imported, copied or adapted for the South African market.

Contact an inventors’ society

This may provide you with a rich source of ideas for products and services. You may even be able to collaborate with an inventor to produce and market his invention. Be sure, though, to evaluate someone else’s product just as carefully as you would your own.

Revive or modify an old product

Look at magazines and catalogues from ten, twenty or fifty years ago. You may discover some good products which are ready for a comeback in their original form or in a modified version. Sales of a popular baby bottle sterilizing liquid were boosted by promoting other uses for it, such as all-round disinfecting and keeping cut flowers fresh.

Visit trade shows and conventions

Besides being a good source of business ideas, trade shows provide an opportunity to talk with exhibitors about the market, new technology, product features and even doing business together. Exhibitors display their products, both new and old, and often take orders from other companies, retailers and wholesalers.

Many of the products displayed at trade shows can be distributed by a third party. Watching the level of activity and excitement at the various displays will give clues as to which products may b_esuccessful. Obviously, you will need to gather more information before deciding whether a ‘may be’ is actually a ‘will be’.

Examine expired patents

Expired patents are public domain, and there should be many business opportunities lurking in the patent registers. There are many reasons why an earlier patent, which was not put into production, may now be ready for the marketplace. These reasons may include:

New production technology making it technically feasible and commercially viable to manufacture.

The size of the market for such a product has expanded.

A previously nonexistent or unsuspected use for the product.

That it can be used in conjunction with other products which were previously unavailable.

Investigate advertisements for business opportunities

Newspapers and magazines sometimes carry advertisements (often in the classified section) for business opportunities and ‘get-rich-quick’ schemes. While these should all be viewed with caution, many of them do represent genuine opportunities, and may serve as the seed for a new idea. Any prospective business opportunity should be carefully evaluated. If a large investment is required, then it is advisable to seek an expert’s opinion.

Computer software

There are a number of software products designed to facilitate the idea-generation process. These include: Idea Generator Plus (IBM PC); IdeaFisher (IBM PC and Macintosh); MindLink (Macintosh); and Synchronicity(IBM PC and Macintosh). These products are not creative in the sense of generating new ideas; they simply assist in the generating of new ideas.

Speak to big businesses

Some large firms have viable product or service ideas which they cannot exploit for one reason or another, such as size of market, strategic direction, or resource commitment. Ask a product or marketing manager to tell you about the ideas that never made it to the market place, and why.

Another method is to telephone the buying department and ask whether any of the components or raw materials purchased for the business are imported from overseas, difficult to obtain, of poor or variable quality, or offered by only one supplier, and whether any new items are likely to be required in the future. Any of these sources could represent a business opportunity.

Ask ‘What if?’ about existing businesses

Take an existing business and ask: ‘What if the price was lower? What if the quality was better? What if the service was better? What if it operated at night? What if it relocated? What if it offered additional products or services? What if it cut out unnecessary products or services?’ You may discover an entire new business opportunity, or find a way to alter and improve an existing business in such a way that it represents a new opportunity.

Peruse trade journals, catalogues and ‘how-to’ books

All of these contain information that can help generate ideas. For example, a simple ‘how-to’ book will introduce you to subject matter for which there is a practical application. Trade journals detail new developments in their industries, and highlight future trends.

The Yellow Pages is another source of business ideas. It is particularly useful as an indicator of what is already being done.

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Sources of Start-up Small Business Ideas

This entry was posted on Saturday, May 2nd, 2009 at 8:04 am and is filed under Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.