1. Chapter 2
Spotting Trends And Opportunities-
Opening Your Eyes
Learning Objectives:
1. Train your eyes, ears, and intuition to read market forces that forecast
future needs
2. Understand the “big picture” and its effect on trends and opportunities
3. Learn to become your own “futurist”
4. Understand the changing family structure and its impact on businesses
5. Gain an awareness of cultural changes and the splintering of the mass
market
6. Research technological changes and their impact on your industry
7. Understand how to access the vast array of available secondary
resources
8. Become excited about brainstorming techniques
9. Learn how to conduct “new eyes” research
10. Analyze the potential for small business success by applying the life-cycle
yardstick to industries
2. Action Steps
• Action Step 8: Opening Your Mind to New Information
• Action Step 9: Discover how changes = trends =
opportunities
• Action Step 10: $1,000 and a Working Vehicle
• Action Step 11: Spotting Trends in Your Selected Target
Markets
• Action Step 12: Have Some Fun Identifying Problems and
Opportunities
• Action Step 13: Investigate New Techniques
• Action Step 14: Launch Your New Industry Research
• Action Step 15: Decode the Secrets of the Shopping Cart
• Action Step 16: Match Trends with Life-Cycle Stages
8. Think about new businesses
that you see opening recently...
• 6 Leading Success Factors (by Forbes magazine)
• Response to change
• Market opportunity
• Marketing expertise
• Human capital
• Alliances and partnerships
• Prospects for growth
9. What is the 'life
cycle?' stages from
- the progression through the
birth to death of a product, business,
service, industry, etc
10. Changes in business occur in 5
major environmental variables:
Technology
Competition
Social / cultural
Legal / political
Economics
11. Changing
• More single parents 'Making
money
shouldn't be
• Growing elderly your first
population goal. Fill a
need, and if
you are
• Individuals with good
disabilities enough at
it, the
money will
• Dual income earners come'
12. Changing Families
• Women in the workforce:
• 49% women and 51% men in wage and salaried workforce
• Dual-earner couples:
• 78% of workforce is dual-earning couples
• The role of technology in employees’ lives:
• 2/3 of workforce uses computers for their jobs daily
• Working for oneself versus someone else:
• 20% of employed people work for themselves instead of
someone else
13. Generations
• By 2030 - 1/2 of US Adults will be over 50
• Generation-x and the need for work-life
balance
14. Entrepreneur magazines top
10 new franchises for 2008
1. Instant tax service
2. Massage services
3. 24-hour fitness centers
4. Commercial cleaning
5. HVAC replacement services
6. Do it yourself meal preparations
7. Math learning centers
8. Small business coaching services
9. New and used video game service
10.Wood floor and cabinet renewal
22. Environmental Variables
ACTION STEP 9
Environmental Variables Changes/Trends? Opportunities?
Social/Cultural Immigration ?
Single Parents
Religion
Ethnic Shifts, Aging Population
Competition Deregulation ?
Impact of "box stores"
International
Technology Biotechnology ?
The Internet
Nanotechnology
Personal Genomics, Universal translation
Legal/Political Who Is In Power ?
Tax Laws
Changing Rules
Economics Recessions ?
Inflation
Changing Income Levels
Cost of Housing, Food, Energy
23. The Splintering of the Mass Market
• A shrinking middle class
Wealthy getting wealthier
Poor getting poorer
• The size of age and ethnic groups is shifting
Latinos are largest minority group
• Living arrangements are changing and
evolving
Single parents, dual-careers, stepfamilies, grandparents
taking care of grandchildren
24. Information Is Everywhere
Three Forms of Research:
• Secondary Research
• Reading someone else’s published research
• Primary Research
• Interacting directly through interviews, observations,
experimentation, questionnaires
• “New Eyes” Research
• Provides a variety of fresh ways to look at business
25. The Big Picture
A Business Plan begins
with the “Big Picture” –
the industry overview
• Industry life cycles
• Your “niche”
• Your industry segment
26. Brainstorm Your Way Into Small Business
• Brainstorming suggestions:
• Find imaginative people
• Don’t say no
• Find a neutral location; Eliminate interruptions
• Believe in each other; Challenge ideas
• Use helpful equipment
• Pick a convenient time
• Invite 10 to 15 people
• Schedule a starting time
• Allow time for self-introductions
28. Think Points for Success
• The most valuable tool you have • Keep an eye out for new trends
for charting trends is new eyes at all times
research combined with • Once you know what segment
extensive secondary and primary you’re in, focus your research
research • Save time and money by
• Keeping your eyes open will accessing valuable resources
keep you one step ahead • Read everything you can and
talk to everyone you can
• The life-cycle yardstick helps you
discover a growth industry
• Trends are like customers. You
can spot them easily or it may
• Trends don’t develop overnight take time to spot them
• Try to latch onto a trend that will • You’re now a great trend-spotter,
help you survive for the next 3 so it’s time to analyze the
to 5 years opportunities you have
unearthed!
29. Opening Your Eyes And Mind
To Vast Opportunities
Action Step 8: Opening Your Mind to New Information
• First Stop! (Large bookstore with lots of magazines): Select and read
5 distinctively different magazines that you have never read. Review
the top 10 best sellers
• Second Stop! (Music store): What’s hot? What’s not?
• Third Stop! (Local mall): New stores? Best service? Highest prices?
Best selection? Best food? Longest lines?
• Fourth Stop! (Your favorite store): List products and services not there
2 years ago. Shelf velocity? What’s hot?
• Fifth Stop! (Television time): Spend 1 hour watching CNN World
Report. Stories surprise you? Any opportunities?
• Final Stop! (Log on): Surf the Internet for 2 to 4 hours on topics you
know nothing about
