Analysis of business opportunities needs to be done so that your business can run well. There are many benefits that you can get by analyzing existing business opportunities. Among other things, namely understanding the various factors that influence the success of a business, such as models, risks, competitors, and so forth.
Because its function is quite crucial, it never hurts if you learn to understand how business opportunities can be done. The good news, you can analyze it independently, so that the budget you have can be allocated for other things that are more important.
1. What is An Analysis of Business Opportunities?
Analysis of business opportunities is a process of identifying and evaluating business opportunities that enable a person or company to be able to make decisions to start a business or develop it.
In general, the analysis includes the following 4 important components.
1.1. Market / Consumer Analysis
Market analysis is carried out to determine the needs and interests of target consumers, and the potential for existing market growth. For example, you are interested in opening a business that is viral because market demand is currently high enough to make it possible to start the business.
1.2. Competitor Analysis
Broadly speaking, almost all businesses in this world must have competitors or competitors in the industry that we choose. By analyzing business opportunities through data collection and strategies carried out by competitors, you can find out the advantages and disadvantages they have.
This can be a gap for you to be a superior player in business competition. For example, you plan to open a food catering business where not many catering in your area runs a pre-order system or sell it online.
1.3. Financial Analysis
Analysis of business opportunities is closely related to the financial analysis that is in your business, starting from the calculation of capital, estimating the profits to be obtained, operational costs, promotional costs, and so forth.
1.4. Business Risk Analysis
Business risk is a challenge that will definitely be faced by business people. By analyzing business opportunities well you can minimize various risks that may appear in the future and if there is an unpredictable event you will be better prepared to deal with it.
2. Purpose of Business Opportunities Analysis
Launching from various existing sources, business opportunities analysis has several very important goals for the continuity of a business. Among them as follows.
2.1. Identify the risks that may occur
By making a business opportunities analysis, you can identify various risks that are very likely to occur at any time, so you can be better prepared to face them with a cool head.
Some examples of existing risks such as tight competition or changes in market trends. By making an analysis, you can take the right action to reduce or avoid this risk.
2.2. Identifying potential markets
By analyzing business opportunities, it will be easier to identify potential markets and know the needs and interests of consumers.
2.3. Recognize competitors
Every business that exists generally has competitors in a similar field. Through this analysis, you will more easily recognize the competitors you have, ranging from the variations of the products you have, the price offered, and the marketing strategy, to the Unique Selling Point.
2.4. Finding unfined business gaps
Analysis of business opportunities allows you to find business gaps that have not been filled or only have little competitors, so you can take advantage of existing opportunities to develop your business.
2.5. Determine the marketing strategy
Conducting business opportunities can help you to create a proper marketing strategy in accordance with the target market. In making a marketing strategy you can apply the principles of smart (specific, measurable, actionable, relevant, and time-time). The detailed explanation is as follows.
- Specific: Marketing targets must be determined clearly and specifically on 1 destination.
- Measurable: The target can be measured by a certain parameter.
- Actionable / Achievable: The existing target must be realistic and allows for existing resources.
- Relevant: The target is adjusted to your business vision and mission.
- Time-found: there is a clear deadline and can be determined from the strategy to achievement.
2.6. Evaluate the products and services offered
Analysis of business opportunities is not only done when you want to start a business but when the product or service you have has entered the market.
By analyzing, you have the opportunity to find out the public response to the products or services you have, so you can continue to develop your products better and be warmly received by consumers.
3. Business Opportunity Analysis Method
Interested in making a business opportunities analysis? The following analysis method can be chosen to facilitate the analysis process and make the right conclusions.
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3.1. SWOT Analysis
The first method commonly used to make business opportunities analysis is SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
This method allows you to find out the strengths, weaknesses, opportunities, and threats in a business. In short, SWOT analysis can help you to understand the ongoing business position and find ways to take advantage of opportunities and overcome threats.
3.2. Determine the Target Market/Consumer
Consumers are one of the most influential parts of the sustainability of your business. This is why you need to target consumers that suit your business.
Tips for Determining Consumer Targets
- Choose a large market segmentation
- Consider choosing a target market with relatively small competition
- Choose an easy target market to reach
- Choose the type of consumer with the needs that are suitable for the product or service you offer
- Choose consumers that match the price of the product you offer
- Consider other things that are still related to some of the points above
3.3. Identifying Competitors (5 Porters)
The fifth business opportunity analysis method is 5 Porter's Five Forces (five things before competing) or which is often referred to as 5 porters.
Porter's Five Forces analysis method is used to evaluate the level of competition in a market. This analysis sees five main factors that affect competition in the market, namely:
- Threat of New Entrants
- Threat of substitutes
- Bargaining power of buyers
- Bargaining power of suppliers
- Rivalry of competition
3.4. Analysis of Marketing Strategy with 4P
Analysis of Marketing Strategy 4P is a method that is often used to design and implement effective marketing strategies.
The 4P concept consists of four basic marketing elements as described below.
- Product (product): a good or service that will be marketed. Product elements include product design, quality, features, brands, and packaging. In the 4P marketing strategy analysis, products must be adjusted to the needs and desires of the market.
- Price (Price): Price is the amount of money that customers must pay to buy products or services. In the 4P marketing strategy analysis, prices must be adjusted to the value of the product, market demand, and competitors' strategies.
- Promotion: Promotion is an activity to introduce products or services to the market. Promotion elements include advertising, sales promotion, public relations, and direct sales. In the 4P marketing strategy analysis, promotions must be designed to achieve the right target markets and create strong brand awareness.
- Place (Place): Place or distribution is the way the product or service reaches the customer. The place element includes distribution channels, store locations, and shipping systems. In the 4P marketing strategy analysis, the place must be carefully chosen to reach the right market and maximize profits.
3.5. PESTLE Analysis
The next business opportunity analysis method is pestle analysis (political, economic, social, technological, legal, environmental) used to evaluate external factors that can affect a business.
Some factors exist in this analysis including political, economic, social, technological, legal, and environmental changes that can affect business and help a person or company in anticipating changes and finding new opportunities.
3.6. Evaluation
The last method is at the same time a method of analysis of business opportunities that you should not miss is to conduct periodic evaluations. Without an evaluation, it will be difficult for you to have a sustainable business and be able to survive in all conditions. Also, make sure to always be up to date related to the latest trends so that your business is not empty of enthusiasts.
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