In the business world, we need to use a little discernment. Not everyone can afford to buy your product or service, or maybe those who can afford it, perhaps will not buy it due to cultural, religious or sociological reasons. It’s not just about interest or money…
This is part 4 of 20 posts, so please make sure you also read the previous posts here.
16. Identify the Purchasing Power of the People
It is not always about interest. People may be interested in a certain product and/or service but they may not have the purchasing power to pay for it. So when coming with a business idea, you have to consider the purchasing power of the people in the area. You want to consider the purchasing power of the majority and not the select and privileged few. For example, it may not be feasible to sell signature brands such as Fendi, Louis Vuitton, and Chanel in third world countries where the purchasing power of the majority is relatively low.
17. Analyze the Buying Behavior of the People
It is not always about the purchasing power. Many people develop a buying behavior and this is something that you have to analyze as well. For instance, it may be customary in some cultures for people not to spend so much on material indulgences (new car, new house, new phone, etc.) but are willing to spend a lot on luxury food. You need to analyze unique buying behaviors such a this one in order to assess the feasibility of your prospect business.
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18. Analyze the Behavior of the People Towards Brand Names
In some places, people may have the purchasing power to buy branded products and signature brands but are not willing to spend on them. For example, there are countries wherein it is customary even for the wealthy to shop in stores that sell second-hand products. On the other hand, there are also places wherein people are strictly brand conscious and will hardly spend on anything other than branded and signature products.
19. Look For Markets That Have High Demand And Low Supply
Where there is high demand but low supply, there is a business opportunity. Say for example that in one place the demand for school supplies is high, but because of the remoteness of the place, the supply is very low. If you manage to find ways on how to bring school supplies to that place, that is like supplying where the supply is low and the demand is high.
20. Grab Opportunities As Soon As Possible
If you are really serious about grabbing an opportunity, it is advisable that you do so right away (after conducting complete market research). This is because you want to avoid having other entrepreneurs grab the opportunity that you saw.