Defining a Need

In today's marketplace, where concepts like globalization and customization have altered the scene considerably, businesses cannot simply advertise a product and expect customers to come. There must be an opportunity for your business idea that you have identified, which the model for your business will be based around. Go to the opportunity, don’t try and make it.

There has to be a need in the market for what your business is going to provide, and strong indications that customers will want it. An entrepreneur may have an idea that he/she thinks is amazing, but if it is not something that customers want, then the business will be doomed from the beginning.

Many entrepreneurs identify needs almost automatically; you want to sell your product or service, and in order to do that people have to want to buy it. Most entrepreneurs decide to start a business in response to identifying a need for a product or service that is not being offered.

Wanting something that is not on the market is one way of identifying a need for a product or service, but is definitely not the only way. To find new ideas, many aspiring entrepreneurs conduct market research on what people want, or keep their eyes and ears open for what people are asking for. Some businesses enter a market by adapting or modifying existing popular products. However, simply copying another product is not a viable business model for long-term success, as we will see in Module 2.

Host Clip - Defining a Need Case Study - Fulfilling a Market Need: Brainhum Corporation

Case Study - Identifying a Need: ShedTech