Chapter 2: Spotting Trends And Opportunities- Opening Your Eyes

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Chapter 2 Spotting Trends And Opportunities-
Opening Your Eyes

• Learning Objectives
• Develop your business intuition by training your
  eyes and ears to sense the future of market
  forces specific to customer needs
• Understand the big picture and its effect on
  trends and opportunities
• Learn to become your own futurist
• Understand changing family structures and the
  impact on businesses
• Gain an awareness of cultural changes as well as
  the splintering of the mass market
• Research technological changes that will directly
  impact your industry
• Begin to access the vast array of available
  secondary resources
• Become excited about brainstorming techniques and
  embrace change
• Learn how to conduct new eyes research by
  scanning your environment
• Analyze the potential for small business-success
  by applying the life-cycle yardstick to industries

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Opening Your Eyes and Mind to Vast Opportunities

• Which new firms are succeeding in your selected
  industry?
• What new target markets are developing?
• How can you meet the needs of again baby boomers?
• What about the needs of echo boomers/millennials
  the iGenerations?
• What desires for products or services do you
  your friends have?
• Is there a product you could repurpose?
• Are there products you could combine to increase
  their value?
• Can you take a product or service make is
  sustainable?
• Any new avenues or channels to sell your product?
  
• Its a Dynamic World

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Action Step 81,000 and a Working Vehicle

• What business can you start with little money and
  no employees?
• What if you only have 1,000 to invest and a
  working vehicle?
• Ask friends what they need and look around
  elsewhere
• What are people accomplishing with small
  investments?
• What opportunities can you explore further?
• Can you purchase products to resell online?
• Can you tap into a skill you already possess?
• Compile a list of your potential opportunities
  share them
• What are people willing to pay for you products
  services?
• How often would they purchase?
• Who are your competitors?

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Action Step 9 Opening Your Mind to New
Information

• Dont just think outside the box get outside
  it!
• First stop Large bookstore
• Read new magazines bestselling books
• What did you learn? Any new opportunities or
  genres?
• Second stop Twitter iTunes
• Whats hot? Whats not? Opportunities?
• Third stop Local mall
• Find out whats new hot
• Investigate service, prices, selections long
  lines
• Do you want to compete?

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Action Step 9 Opening Your Mind to New
Information

• Fourth stop Your favorite store
• Look for new products services
• Can your guesstimate shelf velocity? Internet
  competition?
• Fifth stop Your television set
• Watch CNN World Report and make a list of
  stories
• Surprises? Opportunities? Problems to be solved?
• IDEO, TrendHunter, TechCrunch, Science
• Explore new technologies
• Whats innovative? What problems need solving?
• Final stop Stay logged on
• Surf unknown topics to find opportunities and
  surprises

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Environmental Variables

• Technology
• Biotechnology, sustainability, energy sources
  development, nanotechnology, person genomics,
  water shortages
• Competition
• Deregulation regulation, big box stores,
  Internet, mobile technology, international
• Social/cultural
• Immigration, single households, single parents,
  religion, ethnic shifts, again population
• Legal/political
• Who is in power, tax laws, changing rules
• Economics
• Recessions, inflation, down-shifting, cost of
  housing, food, energy

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The Futurists Top Ten Forecasts for 2012 and
Beyond

• Learning will become more social game-based
• Commercial space tourism will grow significantly
• Nanotechnology offers hope for restoring eyesight
• Robotic earthworms will gobble up garbage
• Giant dustbowls are forming
• Lunar-based solar power production for energy
  demands
• Machine vision will become available
• Advances in fuel cells will enable deep-sea
  habitation
• Future buildings more responsive to weather
  changes
• The end of identity as we know it as it becomes
  easy to create new identities for ourselves

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Changing Household Structures and Demographics

• Only 1 in 5 households married couple with
  children
• Number of households headed by women have doubled
• Single member households are higher than ever
• Many diverse groups that need services
• Higher need for social entrepreneurs
• Generation Y will need training retraining
• Immigration will play a leading role in future
  growth
• Success depends on recognizing capitalizing on
  change

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America is Changing Pew Research Center
Publications

• Trends suggest a 50 population growth in the
  U.S. from 2005 to 2050, mostly due to immigration
• By 2050
• Nearly 1 in 5 Americans will be an immigrant
• The Latino population will triple in size
• Whites will become a minority (47)
• Elderly population will more than double
• Black population will rise 56
• There will be 72 dependents per 100 adults of
  working age

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Action Step 10 Changes Trends Opportunities

• Pick up the last six issues The Economist, Time
  and The Wall Street Journal
• Goal is to spot changes before trends develop
• Being at the forefront of trends makes
  business-savvy people rich
• Look for Changes, Trends and Opportunities
• Social/Cultural, Competition, Technology
• Legal/Political, Economics

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Boomer Explosion

• By 2030 half of all adults will be 50
• Desire to do whatever possible to postpone aging
• Massive growth in home healthcare
• Endless opportunities for service housing
• Boomers are wealthy educated
• It pays to ask them what they want
• Many sandwich generation boomers
• Those who care for both teens aging parents are
  in special need of help
• Look for additional opportunities to serve
  boomers

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Millenials Rising iGeneration Always Connected

• Millenials
• First generation to grow up digital
• Needs are being met by new sharing economy
• Must prove product/service is relevant to their
  lives
• iGeneration
• Uncomfortable without technology
• Tremendous influence over parents buying habits
• Have to be creative to break through to them
• Passion Build Your Future, Inc. Redefining a
  Life and Living with Passion

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Action Step 11 Spotting Trends in Your
Selected Target Markets

• Select the target market of your choice
• Search the net for info staring with census data
• Go through a day in the life of your selected
  target market interact with the social media
  they use
• What trends do they identify with?
• What products services do they desire?
• How can you meet their needs?
• Ask questions and listen to the answers
• Compile a list of products services your Target
  Customer identifies with

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The Splintering of the Mass Market

• A shrinking middle class
• 40 of financial net worth lost over the past 5
  years
• Income has stagnated debt has risen
• Wealth of top 1 has grown significantly
• Two distinct marketing strategies Tiffanys
  Dollar General
• Ethnic groups shifting growing in the U.S.
• Living arrangements changing evolving
• Only 51 of adults are married
• 28 of households are one person
• More young people between 25 34 live with
  parents
• Multigenerational families are growing

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Franchises Respond to Social
Cultural Changes 10 Top 2012

• New Franchises
• No Mas Vello (lasar hair removal)
• Complete Nutrition
• Yogurtland
• ShelfGenie (custom shelving)
• The Seniors Choice (assisted living/healthcare)
• CPR-Cell-Phone-Repair
• Get in Shape for Women
• Signal 88 Security
• Menchies Frozen Yogurt
• Smashburgers (hamburgers)

• Fastest - Growing Franchises
• Stratus Building Solutions (commercial cleaning)
• Subway
• CleanNet USA (commercial cleaning
• Vanguard Cleaning Systems
• HR Block
• Dunkin Donuts
• Chesters (fast-service chicken)
• Liberty Tax Service
• 7-Eleven, Inc.
• Anytime Fitness

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Action Step 12 Have Fun Identifying Problems and
Opportunities

• Seek information by asking friends their wants
  and needs
• Look for gaps in the marketplace but dont judge
• Adapt questions to fit your market
• What frustrates you most about your daily life?
• What products do you need or want but cannot
  find?
• Which ones would enhance your life? What would
  make you happy?
• How can you increase productivity without working
  more?
• Project the gaps out as far as you can into the
  marketplace
• Respond to your friends wants and needs
• Are the needs local, national or global?

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Information Explosion Technology Revolution

• Our private and work lives are converging
• With technology our workplaces can be in contact
  24/7
• How can you help customers manage work-life
  stress?
• Computers smartphones have changed every facet
  of life
• What opportunities do you see?

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Action Step 13 Investigate New Technologies

• Read tech industry magazines look for articles
  that amaze you
• Watch TED talks on technology what did you
  find?
• What opportunities did you discover?
• Share your findings a breakthrough in one
  industry may lead to a breakthrough in another
• Search out research on your selected industry
• What ideas can you follow up on?
• Better prepared to focus on technology
  opportunities
• Never stop reading - follow emerging technologies

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Information is Everywhere

• Use market research, creativity innovation to
  discover the right opportunity for you
• Start with secondary research and find out what
  others have been doing
• Contact trade associations read trade journals
• Read magazines media kits to gather
  demographic, psychographic usage information
• After learning the basics conduct primary
  research to find out exactly what your potential
  customer wants
• New eyes research provides a variety of fresh
  ways to look at business

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Action Step 14 Launch Your Industry Research

• Locate your industrys trade associations as well
  as those that your potential suppliers
  customers may belong to
• Contact the associations and request information
• Attend a meeting of an association relevant to
  your industry
• Read magazines for your industry those that
  reach your Target Customer and suppliers
• Read online media kits
• Do this now you will need it to complete later
  Steps

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Action Step 15 Just for Fun Start to Decode

• Use new eyes to uncover the lifestyle of your
  customer by analyzing a shopping cart
• What can you deduce about each shoppers
  lifestyle?
• What do other things say about them?
• Put your deductions with a demographic checklist
  to decide if any shoppers are your Target
  Customers
• Look for heavy users in your business
• Another alternative is to create this assignment
  using a social media site like Facebook

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The Big Picture Mind Mapping Your Way Into
Small Business

• A Business Plan begins with an industry overview
  which helps you understand your niche
• To be successful you need to know what business
  you are in
• See megacorporations as an opportunity, not a
  threat
• Look before you leap and continue to study the
  marketplace

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Brainstorming Techniques

• Gather people with different ideas, backgrounds
  experience
• Appreciate the idea person
• Structure sessions to maximize creativity
• Have everyone arrive with an idea or problem that
  needs solving
• Before closing, cast a vote to select two or
  three hot ideas
• Brainstorm the hot ideas further to get the
  energy rolling
• The best sessions occur when you connect
  brain-to-brain with creative, positive people
• Brain energy is real and you need to keep tapping
  it
• Great snacks keep the troops fortified!

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Brainstorming Techniques

• Find imaginative people and dont judge
• Find a neutral location without interruptions
• Encourage members to reinforce challenge each
  other
• Consider recording the session
• Pick a time that is convenient not rushed
• Invite 5-10 people to allow for no-shows and
  dropouts
• Schedule the start time, relax begin in half a
  hour
• Allow time for self-introductions participants
  should not be modest!
• Encourage everyone to listen to each other
• Silence is good it means people are thinking
• Laugh and enjoy the process

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Life-Cycle Stages

• Embryo
• Trend is just beginning in its formative stage
• Growth
• Trend is exploding
• Mature
• Trend is no longer growing beginning to wane
• Decline
• Trend is beyond maturity and feeling chilly
• Think about these stages often!

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Action Step 16 Match Trends with Life-Cycle
Stages

• Pull out your notes with your trends, products
  services and problems to solve
• Draw a life-cycle chart
• What stage is each item it?
• Embryo/birth? Growth? Maturity?
• Look for opportunities in the embryo growth
  stage
• If entering the embryo stage, be prepared to
  beat the pavement
• If entering a mature or declining market, be
  prepared to meet beat the compeition head-on

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Think Points for Success

• The most valuable tool you have for charting
  trends is new- eyes research combined with
  extensive secondary and primary research.
• Keeping your eyes open will keep you one step
  ahead.
• The life-cycle yardstick helps you discover a
  growth industry.
• Trends dont develop overnight.
• Try to latch onto a trend that will help you
  survive in style for the next 3 to 5 years.

• Dont assume that because youve caught one trend
  another wont nip your heels.
• Once you know what segment youre in, focus your
  research.
• Read everything you can and talk to everyone you
  can.
• Trends are like customers. You can spot some.
  Others wont show up until youre in business
  wondering if you will make it.
• Youre now a great trend spotter, so its time to
  analyze the opportunities you have unearthed.