Successful business owners see a problem in the world and create a solution to that problem whether it be a product or a service. This sounds simple right, then why is it that over 75% of new businesses fail. The reason is because most business owners and entrepreneurs don't take into consideration that they need to find a niche market to sell their products or services to and a market that is willing to pay the asking price.
5 Reasons To Start A Business
Solve A Problem
Solving a problem is probably one of the most basic business models but at the same time everyone in the world may not recognize the problem exists. Take for instance cell phones; before they were introduced to the market people were okay using landlines in their houses. Once a company saw this as a problem and wanted to be able to give people the connivence of using a phone anytime and anywhere they had to educate the market that a problem existed and that they were the problem solvers and that their product (cell phones) was the answer to their prayers. Sometime you need to create a problem in order to sell your product or service, recognizing opportunities in disguise can often make the biggest break through and the largest return on investments.
Fulfill Personal Desires
People always want something new and exciting that is "exclusive." Targeting a niche market with a high class strucure can often bring you great success. People are always interested in the new and greatest products and services. Offering a product that offers over the top service and is dedicated to a specific market is a great way to create success by captivating a highly profiled customer group.
Everyone has needs that must be met in order for them to survive. People must eat and drink, they require clothing to keep them warm and dry and need places to live. Obvious business areas are renewable energy, medical devices and drugs, improved foods and services. The best ways is finding a need that must be met and figure out a solution to make it easier to obtain or cheaper while providing a better product or service.
Currently, this type of business has been highly successful with the advances in technology it has made it easier to produce and develop new products to introduce to the market. The TV show you are watching is most likely a flat screen, your phone is most likely a smart device, your computer is faster, lighter and smaller, all these are examples of improving existing products. Taking something and making it better is probably the oldest trick in the book and people make millions doing it too.
Create New Stuff
Maybe one of the hardest concepts to accomplish, at the same time though, it is one of the most profitable and personally gratifying accomplishments someone can do. Creating something truly new and unique is one of the most creative things you can do. Doing your market research, creating a prototype and finding a market to sell your new product to is full of excitement. It is critical to evaluate the market to ensure interest in the discovery, but the business model is one that has worked for many.