Wondering how to spot a gap in the market? Whether you\u2019re looking to expand an existing business or start a new one, you\u2019ll need an idea that\u2019s going to set you apart from the competition.<\/p>\n\n\n\n
First you\u2019ll need to spend some time researching your idea. Where is there a gap in the market? What can you offer that\u2019s different to other businesses in your area \u2013 or how can you do it better? Our seven-step guide will help get you started.<\/p>\n\n\n\n
A gap in the market is a business opportunity. It\u2019s when you\u2019ve identified something that customers need, but it isn\u2019t currently available.<\/p>\n\n\n\n
This could be something that\u2019s completely unique, an improvement on an existing idea, or a way to introduce something to a different market.<\/p>\n\n\n\n
Finding market gaps \u2013 and making sure they’re worth pursuing \u2013 takes time and research. <\/p>\n\n\n\n
The market gap (and customer need you’re trying to answer) could be focused on design, price, convenience, or reliability. It doesn’t need to be a whole new product. <\/p>\n\n\n\n
Lucy Hitchcock, founder of Partner in Wine<\/a>, spotted a gap in the market for an insulated bottle that would keep a whole bottle of wine cool when alfresco socialising during the pandemic. Her business success saw her using storytelling to create excitement around her product<\/a>, but also answered a customer need for a practical solution to keeping wine cool on the move. <\/p>\n\n\n\n It may sound obvious, but it\u2019s no good finding a gap in the market if it\u2019s something you have no skills or knowledge in. You\u2019re going to need plenty of drive and determination to make your idea a success, so it has to be something that makes you want to get up in the morning.<\/p>\n\n\n\n Write down everything you\u2019re good at, from career-related skills to interpersonal skills like negotiating and organisation. Now you can think about how to use these skills to solve a problem or improve an existing business idea.<\/p>\n\n\n\n One of the easiest ways to understand what your customers, or potential customers, need is to talk to them. What are the challenges they face? What would make their lives easier?<\/p>\n\n\n\n It might be that your target market is a group of people that you identify with through direct experience, for example as a parent with a baby clothing business. But even if you don\u2019t have first-hand experience, make sure you take the time to get to know their needs.<\/p>\n\n\n\n If you\u2019re looking for a new idea for a product or service, you can find inspiration by seeing what\u2019s trending.<\/p>\n\n\n\n Here are a few things you can try:<\/p>\n\n\n\n This research is an important part of creating a business strategy, and you\u2019ll probably want to do a SWOT analysis of your business to understand external (and internal) factors that could impact your success.<\/p>\n\n\n\n Our interactive SWOT analysis template<\/a> is free to download and use for your business.<\/p>\n\n\n\n Have you ever travelled somewhere and discovered exciting street food and wanted to introduce it back home? Or maybe you\u2019ve seen an inventive use of technology that hasn\u2019t been thought of by businesses in your area?<\/p>\n\n\n\n Before you get too excited about bringing roller skates to the highlands, make sure you consider why something might work in one country and not another. Think about whether it\u2019ll be more challenging to access the materials, costly to make, or if people will even be interested in the idea.<\/p>\n\n\n\n It\u2019s pretty unusual to come up with a completely original idea, but you do need to be aware of copyright laws<\/a>. That said, there\u2019s nothing to stop you taking inspiration from a business and adapting it for a new market.<\/p>\n\n\n\n A good way to understand what your competitors are doing is to visit trade shows and do market research as part of writing your business plan<\/a>. You never know, you might just have the skills needed to improve something or find an inventive use of technology that\u2019ll make a process more efficient.<\/p>\n\n\n\n The coronavirus pandemic showed businesses adapting to changing consumer needs very quickly. And while this was a huge global challenge, there are always going to be changes in the business landscape that you\u2019ll need to keep up with to stay relevant.<\/p>\n\n\n\n The more you can be aware of challenges faced by your customers and your industry, the better chance you have of finding innovative solutions to problems.<\/p>\n\n\n\n Keeping on top of legislation in your industry is important as it could uncover a demand for something that wasn\u2019t there before. For example, the Covid-19 restrictions on socialsing indoors meant more businesses were looking to create comfortable outdoor seating areas to attract customers.<\/p>\n\n\n\n A good way to stay up to date is to join industry associations, sign up to relevant newsletters and set up Google Alerts<\/a> for keywords related to your business.<\/p>\n\n\n\n Purpose. Big Picture. Brand story.<\/p>\n\n\n\n Whatever you call it, this is the reason behind why you do what you do. Once you\u2019ve found a gap in the market and know what your business is going to do, you need to communicate why your business exists and bring your customers along on that journey.<\/p>\n\n\n\nTips for identifying gaps in the market: a step-by-step guide<\/h2>\n\n\n\n
1. Play to your strengths<\/h3>\n\n\n\n
2. Step into the mind of a consumer<\/h3>\n\n\n\n
3. Research market trends<\/h3>\n\n\n\n
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4. Take a global view<\/h3>\n\n\n\n
5. Find inspiration from an existing idea<\/h3>\n\n\n\n
6. Solve a problem<\/h3>\n\n\n\n
7. Be aware of new legislation<\/h3>\n\n\n\n
Be clear on your purpose<\/h2>\n\n\n\n