Exploring Business Opportunities - Small Business BC

solutions for small businessexploringbusinessopportunitiesa guide forentrepreneurs

This document has been developed for the Internet by the Ministry of Competition,Science and Enterprise, Province of British Columbia and Western EconomicDiversification, Federal Government of Canada.Ministry of Competition, Science and Enterprisewww.gov.bc.ca/cse/Western Economic Diversificationwww.wd.gc.caRevised March 2002

ForewordThis publication is part of the Solutions forSmall Business series sponsored by WesternEconomic Diversification and theBritish Columbia Ministry of Competition,Science and Enterprise.Both agencies are committed to supporting theneeds of small businesses and furtherinformation about small business programs andservices is available on each agency’s web site(www.wd.gc.ca and www.gov.bc.ca/cse/).The Solutions series is also available on both websites as well as on the web site of Canada-B.C.Business Services (www.smallbusinessbc.ca). Thefour publications in the series are:• Business Planning and Financial Forecasting• Exploring Business Opportunities: a guidefor entrepreneurs• Resource Guide for British ColumbiaBusinesses: information and guidelines• Starting Your Home-based Business: amanual for successCanada-B.C. Business Services is anotherjoint partnership between Western EconomicDiversification and the Ministry ofCompetition, Science and Enterprise. Theprogram offers specialists who can advise ontaxation, statistics and business planning aswell as a wide range of business informationand interactive business planning tools.Canada-B.C. Business Services has offices inVancouver and Victoria as well as outreachcentres throughout the province in the officesof Community Futures DevelopmentCorporations and Government Agents. Forlocations, or for more information, check(www.smallbusinessbc.ca).solutions for small business exploring business opportunitiesi

ContentsQualities and Skills forEntrepreneurial SuccessiiiIntroduction:Finding and Developing BusinessOpportunities 1Generating Ideas and IdentifyingOpportunities 1Preparing a Business Plan 2Market Research 3How to Use This Book 4Opportunities:Find a Need and Create an Opportunity 5Invent a New Product or Service 5Locate a Patent Opportunity 6Assemble a Product 7Become a Supplier 8Combine Components 9Find Uses for Waste Materials 10Target a Small Part of a Large Market 11Pool Small Groups of Consumerswith Specialized Needs 12Create a Market Demand 13Find People with Under-Utilized Skills 14Start a Co-operative 15Conduct Market Research forOther Businesses 16Opportunities:Build on an Existing Businessor Consumer Need 17Market Someone Else’s Product 18Become an Agent 19Become a Distributor 20Become an Import Distributor or Agent 21Become an Export Distributor or Agent 22Replace Imports 23Buy an Existing Business 24Buy a Franchise 25Recycle an Existing Product 26Add Value to Existing Products 27Substitute Materials in Existing Products 29Package or Unpackage Existing Products 30Improve an Existing Product or Service 31Imitate a Successful Product or Idea 32Find a Good Product That Has Failed 33Offer Discount Goods for Resale 34Customize Existing Products 35Opportunities:Build on Changing Trends 36Cater to Discarded Markets 36Take Advantage of a Market Switch 37Capitalize on a Growth Trend 38Take Advantage of New Fashions or Fads 39Take Advantage of Changes inGovernment Regulations 41Cover Market Gaps or Shortages 42Transfer a Concept from One Industryto Another 43Capitalize on Changing ComputerTechnology 44Help Other Businesses Take Advantage ofNew Technologies 45Create an On-Line Business 46Opportunities:Make Your Current BusinessAll It Can Be 47Identify Opportunities Arising From YourCurrent Business 47Identify the Full Scope of Your Business 48Take Advantage of Circumstances 49Expand Market Areas 50Expand your Business over the Internet 51Franchise Your Business 52Meet the Same Needs in a Different Way 53Take Advantage of Global Markets 54Appendix A: Testing Business Ideas 55Basic Considerations 55Collecting Information 55Asking the Questions 56Questions 56Appendix B:Sources of Help and Information 60Appendix C: Business Ideas 61Agriculture, Agrifoods and SecondaryFood Processing 61Aquaculture and Ocean Industries 62Manufacturing 62Technology and EnvironmentalIndustries 63Adventure Tourism 63Crafts and Cultural Industries 64Health Care Industries 64Home-Based Business Possibilities 65iisolutions for small business exploring business opportunities

Qualities and Skills forEntrepreneurial SuccessIt takes a certain kind of person to make asuccessful entrepreneur. It’s not easy to go outon your own, leaving the safety net of yourjob behind you. A new venture is risky, andwill make heavy demands on your time andyour resources, both personal and professional.But with a strong inner drive to take controlof your own destiny and reap the fruits ofyour own labour – and with as many of thequalities below as you can muster – successcan be yours.Entrepreneurial QualitiesThese following personal qualities areadvocated by business trainers as the keys tosuccess as an entrepreneur. Ask yourself thesequestions, and be honest with yourself – to besuccessful, you must be aware of yourstrengths and weaknesses. Many of thesequalities can be cultivated, and you can drawon outside resources to fill in any gaps.1. Do you have commitment,determination and perseverance?Total dedication and perseverance will bethe key to your business success. Finishwhat you start, even under difficultcircumstances. Recognize that successdoesn’t happen overnight.2. Are you confident that you can succeed?Believe in yourself and focus on what youmust do to succeed rather than what youwill do if you fail. If you believe inyourself, others will too.3. Are you creative and innovative?An ability to come up with good ideas andsee things from many angles will ensureyou continue to meet market needs.4. Do you recognize opportunities whenthey arise?Not only will you always need to be onthe lookout for opportunities, but youmust be willing to act on them decisivelywhen the time is ripe.5. Are you willing to work hard?Starting a business will be hard work, butthe rewards can be great. The sense ofsatisfaction at your successes, both smalland large, will compensate for all yourtime and effort.6. Can you handle responsibility?You are the only one who can make yourbusiness succeed. The buck stops at you –set high standards for your own work andmeet them.7. Do you have a need to achieve?Complacency is the downfall of a businessowner. Aspirations for success and a needto excel must be your driving force. Aneed to achieve is much more importantthat a desire for power and status. Moneyis not the best measure of success - youmust derive satisfaction from seeing yourhard work lead to results.8. Are you goal-oriented?Focus on the future, with a clear sense ofdirection. To realize your goals, you mustknow where you are going and what youwant to achieve.9. Are you action-oriented?You will need to take the initiative andstart producing results - be a self-starterand take control of your destiny.10. Do you like to solve problems?You must be willing to tackle problemsand identify solutions. Analytical ability isimportant, because business decisionsoften involve complex and sometimesconflicting considerations. Ensure youmake decisions based on all the facts.solutions for small business exploring business opportunitiesiii

11. Are you comfortable with uncertainty?You will need to make decisions evenwhen the best option is not totally clear.Follow your instincts but make sure youare well informed.12. Are you willing to take calculated risks?There are no guarantees for anentrepreneur, but the risks you takeshould be well thought-out. You may needto push yourself past your comfort zone,but be realistic about the risks you take.13. Are you a realist?You must recognize your strengths andweaknesses, know when there’s a problemand admit when you’re wrong. Don’tblame others.14. Are you open to feedback?You will need to learn from your successesand mistakes in order to improve andgrow your business.15. Are you a quick learner?View mistakes and failures as temporarysetbacks and use what you learned fromthem as an opportunity to improve.16. Are you adaptable?Accept that change is a part of life anduse it to your advantage. Successfulbusiness people watch trends, takeadvantage of technological advances,make improvements over the competitionand maintain an open mind. Flexibility isimportant, as you may need to alter plansquickly to address unforeseencircumstances.17. Are you self-reliant?Independence and trust in your ownabilities will ensure you are in control ofyour own destiny. You can’t count onanyone but yourself - as the owner, youare the only one who can fulfill your role.18. Are you self-confident?Belief in yourself will enable you toovercome the challenges you encounterand achieve your goals.19. Are you a leader?A business owner is a leader, both toemployees and to customers. Set anexample for how the business should beoperated, and be fair and consistent.20. Do you believe there’s always a betterway to get the job done?Be dissatisfied with the status quo andfind ways to improve it. You should behighly motivated by a desire to innovateand bring your own approach to doingthings. Non-conformists are adept atspotting opportunities others have missed.21. Can you market yourself?When you are in business, people willassociate you with your product. Propermarketing is essential to your success.22. Do you have integrity?Honesty in business and a willingness todo a good job will create lastingcustomers. Customers don’t want to givetheir business to someone who isdishonest or unethical.23. Are you reliable?You must come through for yourcustomer – follow through on yourpromises.24. Are you a good organizer?You will need organizational skills to runyour own business. Paying attention todetails, both in your product or serviceand in your management, can make thedifference between success and failure.ivsolutions for small business exploring business opportunities

25. Are you a good communicator?Good communication skills are needed tohave good rapport with customers, tounderstand what your customers want, tocommunicate what you can deliver, andto be clear with your employees in yourdirections.26. Do you have high energy and goodhealth?Self-employment requires long work hours– you’ll need stamina and lots of energy.27. Do you have a good support network?Support from your family, friends andcolleagues will make all the difference –you will need their understanding whenyour business has to take priority. Anetwork of professionals from whom youcan solicit advice, information andreferrals will also help immensely.Business SkillsAlong with these personal qualities that willhelp lead to your success, you will also needskills to ensure your business is managedproperly. Knowing about your field ofbusiness is important, but good managementcan make or break any business. Once youhave your business idea, below are some of theskills you will put into practice as a businessowner. You will need to:Start-up• Prepare your business plan• Choose an appropriate facility and location• Obtain necessary licences and permits• Choose your form of organization and typeof ownership• Arrange your start-up financing• Determine your initial inventory andequipment requirements• Decide on pricing• Set up your record-keeping systems• Purchase insuranceFinances• Arrange financing and lines of credit• Maintain your books and financial records• Manage your cash flow• Report and pay taxes• Plan and monitor your budgetOperations• Buy supplies and stock• Buy equipment and machinery• Manage inventory• Fill orders• Ensure accounts receivables are paid in atimely manner• Manage the facilities• Pay suppliersPersonnel• Hire and train employees• Supervise employees• Schedule shifts and employees to work them• Evaluate employees’ work• Motivate your employeesSales and Marketing• Identify your customers• Identify different customer needs• Tailor your product or service to yourcustomer’s needs• Develop new product and service ideas• Determine appropriate prices• Create and implement promotionalstrategies• Develop promotional materials• Secure advertising• Contact customers and make salessolutions for small business exploring business opportunitiesv

Introduction:Finding and DevelopingBusiness OpportunitiesThere is a big difference between a businessidea and a business opportunity. An idea is anopportunity only if it has a chance to succeed.If you are looking for a new businessopportunity, this guide is for you. It is astarting point to help you find or think ofbusiness ideas and evaluate them to decide ifthey are true business opportunities for you.If you are thinking of starting a new business,this guide can help you identify businessopportunities that suit you best. Or it canhelp you to determine the best direction forexpanding into new areas of opportunity ifyou already own or manage a business.Generating Ideas andIdentifying OpportunitiesMaking a decision to be your own boss is thefirst step to being in business. Then you mustidentify your business opportunity. You mayalready have many business ideas and optionsyou want to explore. The following threemethods of generating ideas may also behelpful to you:Assess Your Own Personal Skills and Strengths• What interests or hobbies do you have thatcould be turned into a businessopportunity? Your greatest business strengthwill come from doing something you enjoyand doing it well!Research Business Publications• Reviewing business magazines, periodicalsand publications can plant many seeds fornew business ideas. Franchise directoriesand distributor listings open doors tobuying already established companies.Be Aware of Market Trends andProduct Needs• Changing trends in demographics, lifestylesand buying patterns can provideopportunities to fill a need in yourcommunity. By adding value to existingproducts and services or identifying localneeds that have been overlooked, you candevelop successful business ventures.Many people think that all you need to start abusiness is one good idea. Although that issometimes the case, the best foundation forbusiness success is several ideas. If your firstidea does not test out well, you will be leftwith an alternative to try. When a business isbased on only one idea, you have nothing tofall back on if it fails.It is important to take extra care in exploringand testing your business ideas’ chances ofsuccess, before you act. A poor idea can faileven when the best business skills are availableto support it. And remember, it will alwayscost you less to examine an idea thoroughly inadvance than to incur the expenses of abusiness failure.solutions for small business exploring business opportunities 1

Ongoing business success is often linked tothe ability to produce ideas on a continuingbasis. Successful businesses keep in touch withchanging markets and needs, testing new ideasto determine their suitability and adoptingthose that prove viable. Through this process,a business takes advantage of realopportunities in the marketplace.Business owners who watch for possible newproducts, services, procedures and processeskeep their businesses healthy. Without growthand new ideas, a business has little chance oflong-term success. Every business ownershould make an effort to generate more andbetter ideas, thereby finding new businessopportunities.Identifying business opportunities requires anapproach that combines analysis withcreativity. Some business owners are skilled atcarrying out this process on their own, whileothers assemble a “team”-people with differenttalents and skills who together can produceuseful ideas and evaluate their potential.Whichever process you use, you may find ithelpful to review one of the many books oncreative thinking and brainstorming availableat bookstores and libraries.Preparing a Business PlanThe importance of business planning cannotbe overstated.Once you have identified an opportunity andselected it as the possible basis for a newbusiness, it is essential to prepare a thoroughbusiness plan before you proceed any further.Your business plan is your road map tosuccess. It is a written summary of what youhope to accomplish and how you intend toorganize your resources to meet your goals.Properly and carefully prepared, it will alsohelp you to measure your progress along theway. Your business plan will:• help you to be realistic about your selectedbusiness opportunity;• help you to identify your customers, yourmarket, your pricing strategies and thecompetitive conditions under which youmust operate to succeed;• improve your ability to manage yourbusiness;• outline your short-term and long-termbusiness goals;• identify the amount of financing or outsideinvestment required; and• make it easier for a lender or investor toassess you and your proposal.There are numerous publications available tohelp you with your business planning. Manyof these, such as the Government of BritishColumbia’s publication Business Planning andFinancial Forecasting, can be found at yourlocal Chambers of Commerce, GovernmentAgent (GA) offices, Western EconomicDiversification Canada (WD), CommunityFutures Development Corporations andWomen’s Enterprise Society of B.C.The Canada/B.C. Business Service Centre andthe province’s Government Agent offices areexcellent sources of business-relatedinformation.2solutions for small business exploring business opportunities

Market ResearchAn essential component of your business plan,market research plays an important role indetermining the viability of your businessidea. In essence, market research allows you toask your customers if they will buy yourproduct. When done properly, it will help youanswer key questions such as:• Will customers buy your product or service?• Are they interested in the benefits yourproduct or service offers?• What features or elements are important tothem? Why do they buy?• Where do they look when deciding what tobuy (newspapers, flyers, radio, TV, etc.)?• How much will they buy?• What prices are they willing to pay?Your market research may show you that youneed to shift your business concept to bettermeet the market needs of your potentialcustomers. Be open and flexible in response toyour market research, and pay close attentionto what it tells you about your business idea.Market research can be very simple andstraightforward to do. You do not need to hirean outside company; in fact, the best marketresearch is often the kind you do yourself.How you do the research will really depend onthe type of business you want to start and thenature of your customers. You should examinethree areas in your research:• The customers themselves. They can be thefinal consumers or firms reselling yourproduct to those customers.• Other firms providing similar products insimilar markets. The closer the match, themore valuable the information. Try to findmarkets similar to your own. Similarmarkets in other geographical areas can be avaluable source of information.• Statistics. Industry averages for cost ofgoods, advertising, etc. can give you goodguidelines on how others run theirbusinesses. Information on population, age,income, and other such demographicsshould also be considered if it applies toyour product or service. Importantindicators in your potential market mayinclude housing starts, business licenceinformation and number of customers.A list of possible questions to ask is providedin the Market Considerations section ofAppendix A: Testing Business Ideas.Tips for Surveys• Market surveys should be brief.• Avoid asking too many questions.• Decide what information you must have,and only ask questions that focus on thoseareas. A good market survey can ask as fewas 4-6 questions, and take less than 10minutes (especially important if you aredoing a telephone survey).• If necessary, obtain assistance from aprofessional surveying company, which canhelp you develop your questions andinterpret your data.solutions for small business exploring business opportunities 3

How to Use This BookUnder each chapter heading is a description ofan area of business opportunity, followed bythree sections:• Some Examples, containing illustrations ofthe concept in action;• How To Do It, presenting suggestions fortrying the approach; and• Key Questions, to help you direct yoursearch for opportunities.As you read, think of business ideas andopportunities you would like to explore andwrite them down so you won’t forget themlater. The ideas that come to you will bedifferent from those that occur to others,because they are coloured by your ownknowledge, interests, experiences andambitions.Some approaches for identifying businessopportunities will be more useful to you thanothers. After you have read through the book,you will likely want to return to the ones thatyou find most helpful. Keep in mind that youdo not need to read these pages in order; eachapproach stands alone, and you can flip backand forth as you wish.While the types of approaches are not listed ina particular order, those that are similar areloosely grouped together. You will see thatthere is some overlap, but none of the businessactivities listed is exactly the same as any other.As you work with this book, remember that itis only a guide. It will help lead you throughthe process, but it can’t do the work for you.The ideas, judgments, information anddecisions about potential ventures areyours alone.4solutions for small business exploring business opportunities

Opportunities:Find a Need and Createan OpportunityInvent a New Product or ServiceInventing a product or service that meets anexisting but unaddressed demand can createan excellent business opportunity.Some Examples1. A Vancouver Island inventor developed acompact, straight edge jig for use withcircular saws, allowing users to easilymake 90 degree cross cuts.2. An entrepreneur saw the work hospitalstaff went through to prop patients up intheir beds and invented the mechanicalhospital bed.3. Recognizing the opportunity arising fromthe growth in computers in businesses, aB.C. businessman developed the firstcompany to provide computer cleaningservices. The company is now franchisedinternationally.4. A B.C. company developed technologyfocused on the detection andmanagement of cardiac disease usingcomputer-based software and hardwarefor cardiologists.5. A B.C. inventor realized that it can bedifficult to organize closets efficiently. Heinvented a closet organizer, now sold inmost building supply stores.6. A B.C. businessman invented a portablesupport handle to help seniors and peoplewith hip or knee problems more easilyhoist themselves out of their vehicles.How To Do It1. Concentrating on products and processesthat are familiar to you, try to think ofideas for products, processes or servicesthat would enhance or improve existingsituations. (“What we need here issomething that would . . .”)2. Observe products or services that couldbe made more effective to save time,effort or money.3. Look for products and services thatpeople are requesting, but do not exist.4. Examine current products and servicesfrom various perspectives to see if theycould be improved by adding,subtracting, changing or combiningelements.5. Read newspaper columns and magazinesections devoted to consumer topics,including people’s ideas about productsand services they would like to see offeredor invented.6. Use creative thinking to come up with anentirely new product or service.7. Before proceeding with an invention, seekprofessional advice from a patentsattorney (listed in the Yellow Pages ofyour telephone directory). Each city has apatents receiving office that will acceptand deliver your patent to the federalpatents office.Key Questions• What services or products are needed but don’texist?• What consumer needs could be met by a newinvention?• What familiar processes could I improve byinventing a new procedure, product or service?• What ideas do I have that I could develop intoinventions?• Is there a market for my invention?solutions for small business exploring business opportunities 5

Locate a Patent OpportunitySometimes a business opportunity can befound by locating a patent for a product orservice that has commercial value but hasnever been produced, or has been producedbut inadequately marketed. This could includepatents that have expired and can beduplicated without a licence.Some Examples1. A farmer noticed a need for a mechanicalrock-picker and wanted to manufactureand market such a product. He had apatents search done, and several rockpickerswere found. The farmer contactedthe patents owners and found one personwho had not begun to produce his rockpickerfor commercial sale. He thenpurchased the patent rights and startedproduction.2. In 1944, the president of HaloidCorporation read a magazine article abouta dry copier that had been invented in1938 but never produced. He contactedthe inventor and purchased the patentrights. Over the next several years, Haloiddeveloped a line of dry office copiersbased on that patent. In 1960, Haloidchanged its name to Xerox Inc.3. A young B.C. patents searcher looks forold patents for products that were aheadof their time and could still be marketabletoday.How To Do It1. Select an area of patents you wish tosearch. Patents are classified according tosuch categories as electrical, mechanical,chemical, seeds and plants, and styledesign.2. To start your search:• Read the Patent Office Record at thelocal library and ask the librarian tohelp you conduct a patents search usinglibrary materials-professional searcherscan save you time and effort with theirknowledge, skills and modern tools;• Contact PATSCAN, University ofBritish Columbia (see the Governmentof British Columbia’s publicationResource Guide for British ColumbiaBusinesses: Information and Guidelinesfor the necessary contact information);• Contact university industry liaisonoffices that specialize in universitypatents and technology transfer;• Contact a patents attorney or agent forprofessional assistance (consult yourYellow Pages under Patents Attorneysand Agents-Registered);• Locate a company or organization thatdeals with the design and marketing ofpatents and ask for information aboutrights to patented products or servicesthey are currently developing forclients;• Advertise for inventors to contact you inreference to their patented products andservices; and contact major companiesthat may own patents for products theyare not currently producing.Key Questions• What area of patents most interest me?• What available patents have commercial valueand could be used as the basis for a businessopportunity?• What potential customers have said they wouldbuy the product I am considering developing?6solutions for small business exploring business opportunities

Assemble a ProductAssembling a product involves purchasing allof the parts for a product and putting themtogether to produce the finished item. It canalso mean providing an assembly service forparts purchased by others.Some Examples1. A B.C. company assembles officefurniture on contract for customers ofoffice supply stores, at the customer’shome or place of business.2. A B.C. mechanic offers an assemblyservice for customers who purchasecar kits.3. A company formed by a recreationstudent brings in playground equipmentkits and assembles large playgroundstructures.How To Do It1. Look for products that are made of severalparts and meet one or more of theseconditions:• The assembly process is expensive forindividuals, and there is a need for acentral assembly service to reduce costs;• The product is assembled from partsmade in different locations, and you arecentrally located to become aconvenient assembly point;• The product needs to be assembled intoits finished form before being shippedfrom your area to other locations;• It is too expensive to ship the assembledproduct into your area as a completedunit, but the unassembled parts can beshipped less expensively and then beput together by you;• The product is sold unassembled toconsumers, but the average person isnot willing or able to assemble it; and• The assembled product is a bulky itemthat is difficult to transport, but theseparate parts are easy to ship.2. Analyze various products and assemblyoperations to find situations where youcan save yourself or someone else time,effort or money by setting up your ownassembly operation.3. Identify and talk to potential customersfor the assembled product to determinewhether there is a need for the item.Key Questions• What product could I assemble to save someonetime, effort or money?• Can I offer this product or service at areasonable enough price that people woulduse it?• Is there a market for the product? Havepotential customers stated that they would buythe product?solutions for small business exploring business opportunities 7

Become a SupplierA supplier produces a product or service thatis then used by someone else as part of a largerproduct or service. A supplier may provide asingle specialized part or a large number ofsimple parts.Sometimes there is an opportunity to becomea secondary supplier, when the larger producerdoes not want to rely on a single source ofsupply for critical parts.Some Examples1. A B.C. firm supplies brake harnesses totruck manufacturing plants.2. A Nelson company designs andmanufactures electronic and computercomponents for the automotive, heavytruck and marine markets.3. A B.C. woman provides an editing andproofreading service to help consultantsin various industries produce professionalproject reports for their clients.4. A B.C. software developer created asystem to make appointments, do billingand manage patient case files forpsychiatrists.5. A B.C. high-tech company sells wirelesscellular data modems, providingelectronic commerce, Internet access ande-mail to mobile professionals, police, fireand emergency medical services, thetransportation industry, and alarmmonitoring companies.How To Do It1. Consider the components required tomanufacture a product with which youare familiar. Determine how you canprovide one or more of those componentswith improved quality, cost or reliability.2. Contact purchasing agents who work formanufacturing companies. Ask themabout their supply needs, to identifysupplies that are difficult to obtain, tooexpensive or come from a single sourcethat may be at risk.3. Look for request-for-supply notices innewspapers or trade journals.4. Read trade journals to discover supplyproblems for particular industries.5. Have your name added to mailing lists ofpublic purchasing agencies, the B.C.government Purchasing Commission orthe Public Works and GovernmentServices Canada office, which are requiredto advertise publicly for tenders onsupplies.6. Read publications that explain how to sellproducts and services to specializedorganizations such as the military orgovernments.7. Identify a product or service you can offerand analyze the range of producingorganizations that could use it as part oftheir process.Key Questions• What products or services could I supply?• Could these products or services be used as acomponent by another producer or supplier?• Could supplying my products or services toanother company save the company time ormoney, improve their product or service, or helpthem realize other efficiencies?• Is there a market for these products or services?8solutions for small business exploring business opportunities

Combine ComponentsOften, it is possible to combine two or morecomponents to create something new. Thisworks best when the new product is uniqueand more marketable than the separate itemsalone.Items that can be combined include products,services, people, businesses and assets.Some Examples1. A suntanning parlour and beauty salonwere joined together in the same facilityto offer an expanded range of services.Business improved for both.2. Sales of cranberry juice were dramaticallyincreased by combining it with other fruitjuices to create a new range of drinks.3. Several trades people combined theirservices to offer a comprehensive homemaintenance and repair service.4. A computer retailer joined with aneducational company to provide fullservice sales and training on equipment.5. A web designer, graphics designer andwriter/editor joined forces to offercompanies full web site developmentservices.How To Do It1. Start with a business, idea or product thatinterests you and ask what could becombined with it to create somethingunique.2. Look for consumer groups with needsthat could be served by combining two ormore existing products or services.3. Experiment with various combinations tosee what would fit together. Compare listsof business types (such as the index in theYellow Pages) and imagine the results ofdifferent combinations among the topicslisted.4. Talk with potential customers to find outwhether there is a market for thecombination of products or services youwant to offer.Key Questions• What products, services or other items could becombined to create a new opportunity?• What combination of products or serviceswould provide added value or convenienceto customers?• What suitable combinations could I handle?• How many potential customers have indicatedthat there is a need for the end product I amconsidering?solutions for small business exploring business opportunities 9

Find Uses for Waste MaterialsSometimes uses can be found for wastematerials-by-products, left-over materials orother resources discarded by individuals orcompanies. These materials can often beobtained free or at a very low cost and thenprocessed to produce useful goods.Some Examples1. A company takes pieces of lumber thatare too short to be usable and fingerjointsthem together to create longerpieces. These are then sold for doorframes and trim.2. An American company buys oldermainframe computers from corporations,salvages the precious metals and alloysand recycles them for other products.3. A company offering insulation upgradesin older homes blows shredded papermaterials into walls and ceilings toimprove insulation.4. A B.C. entrepreneur contacted a chickenprocessing plant that discarded largevolumes of chicken feet and asked to takethem away. He froze the feet, then soldand shipped them to China where theywere cooked, combined with sauces,packaged and exported back to B.C. as adim sum delicacy.5. A diesel generating plant in northern B.C.uses its exhaust to heat an adjacentgreenhouse so that vegetables may begrown in the winter to meet local marketdemand.How To Do It1. To find waste materials that can be reused:• Take inventory of all products discardedfrom your existing business or otherbusinesses;• Identify obsolete products which,although no longer used by a businessor industry, remain in storage; and• Observe materials collected by recyclingcompanies, local waste product dumps,demolition specialists and junk pick-upservices.2. Read trade publications to identify byproductsthat are causing problems forprocessing and manufacturing plants.3. Read technology magazines to discovernew processes that use waste products as asource of materials.4. Analyze the value of waste products toother producers. Consider whether thesewaste products may be used in theiroriginal form, as parts or as material in arecycled form.5. Identify or develop new uses for existingmaterials to create a more valuable endproduct.6. Study ways in which waste products arerecycled in other parts of the world, anddevelop similar systems in your area.7. Talk to potential customers to determinewhether they would buy your product.Key Questions• What waste materials are available to me?• Which of these waste materials could be used toproduce something useful and saleable?• What waste products are costly or difficult foran industry to dispose of, which would thereforebe available to me at little cost?• Is there a market for the end product I amconsidering? Have potential customers said theywould buy it?10solutions for small business exploring business opportunities

Pool Small Groups of Consumerswith Specialized NeedsRather than offering products or services tolarge groups of customers, many successfulbusinesses can be built by meeting the uniqueneeds of smaller groups. While your customersare fewer, they are often prepared to pay morefor the specialized offerings. Unique needsoften arise from specific lifestyles ordemographics.Some Examples1. An entrepreneur in a remote northernB.C. location recognized that many of thelocal restaurants had a problem withbread supply and delivery. By making 2-3trips per week to the closest major centre,he was able to purchase from differentbread suppliers, with local restaurantscollectively sharing the delivery costs.2. A small group of retail store owners hadlittle access to the specialized trainingservices required for their employees.They found it difficult-and expensive-tosend their employees out of town. Bypooling the owners’ varied retailing skillsand experience, they were able to form aconsulting company that delivered thenecessary training.3. A Canadian company launched a webbasedbuying group that offers memberbusinesses discounts on name-brand officesupplies, computer equipment andtechnical repairs and maintenance, as wellas a “buying exchange” where memberspost purchase orders and desired price forsuppliers to bid on.4. A group of aboriginal artisans joined toform a retail marketing co-operative,allowing them to share the necessary workand expenses that previously hadprohibited them from starting theirindividual stores.How To Do It1. Identify some of the difficulties peopleencounter in starting or doing business inyour community, as well as services orproducts they need but cannot access.Explore whether any of these providebusiness opportunities for you.2. Talk to your local Chamber of Commerceto determine what services or products arelacking in your area. Find out why. Arethere obstacles you could overcome thatwould allow these businesses to start uplocally?3. Based on your own experiences, identify abusiness where you have encountereddifficulty making local purchases oraccessing services locally. Look around tofind other individuals who have the samespecialized needs. Develop a business cooperativethat meets these needs.4. Look for other entrepreneurs trying tostart business ventures but intimidated bythe time and money involved. See if thereare ways you could combine skills orproducts to work together and share theresponsibility of a business.Key Questions• What have I tried to purchase locally that hasbeen unavailable?• What service or product could I provide to aparticular industry to enhance its efficiency orsave time and effort?• For specialized products, will there be enoughof a demand on a regular basis to support abusiness?• Have I considered taking a co-operativeapproach to starting a business? Would thiswork for me?12solutions for small business exploring business opportunities

Create a Market DemandSometimes you can create a market demandfor a product or service by magnifying thepopularity and image of a special person,group, enterprise, event or idea.Some Examples1. When B.C.’s Terry Fox ran his Marathonof Hope, media coverage of this specialperson created a special type of marketdemand. People all across the countrymade contributions to the CanadianCancer Society and purchased relatedproducts in support of cancer research.2. The City of Kelowna has offered $1million for anyone who captures thelegendary Lake Okanagan creature,Ogopogo. Many related gift items havebeen developed and Ogopogo is also usedin tourist promotion for the area.3. A group of bicycle shops in a B.C.community promote the Bike to WorkWeek and offer bike commuters discountson products, maintenance and repairs.How To Do It1. Look for an event, person, group,enterprise or idea that has the potential tobe magnified through careful publicity orpromotion. Consider whether the objectto be magnified has the ability to capturepeople’s imagination. Either focus on anexisting object or create a situationyourself as the basis for magnification.Opportunities could be provided by:• Athletes, entertainers, politicians,business speakers;• Special features of an area such asmountains, rivers or industries;• Newsworthy events;• Performances of special feats byextraordinary people; or• Imaginary people and things.2. Devise a promotional and publicitystrategy for the object you have chosen,and think of off-shoot products andservices you could market.3. Investigate and get professional advice oncontracts, patents and licences.4. Contact everyone who would be involvedin your planned promotion and make aproposal to see if they’re interested andhave ideas.5. In the case of an event, begin toorganize it.6. For an object being promoted bysomeone else, explore related productsand services you could provide as part ofthe overall promotional plan.Key Questions• Who or what could be magnified to become thebasis of an income-generating enterprise?• Could I provide the necessary publicity andpromotion?• Could I create a demand for the products orservices I have in mind? How?• What product or service could be sold inrelation to a person, event or object that isalready prominent and popular?solutions for small business exploring business opportunities 13

Find People withUnder-Utilized SkillsMany people in our society have skills,knowledge, talents and energy that are notbeing used to their maximum potential.These people may be retired, unemployed,attending school or university, or employed inan occupation that does not use their bestskills and aptitudes. They may be available forfull-time or part-time work, and their skillscould be used to enhance existing businessactivities or as the basis for new opportunities.Some Examples1. A businesswoman started a wordprocessing and computer data entryservice, distributing piecework to peoplewho had computers in their homes.2. Three unemployed tradesmen pooledtheir resources, bought an older run-downhome and renovated it for resale.3. An unemployed accountant and teacherdesigned a computer-based trainingpackage to teach accounting to highschool students. A retired marketingmanager joined them to promote theproduct across North America.4. A co-operative comprised of people withdisabilities provides gardening andlandscaping to residents and businesses.How To Do It1. To identify people who have valuableskills talents or knowledge, but aren’tworking regularly:• Check with job placement agencies;• Ask training institutions for names ofgraduates who are not currentlyemployed; and• Check with student employmentcentres on university and collegecampuses.2. Locate employees with specialized trainingwho are on temporary leave from theirjobs for such reasons as maternity leave,academic studies or personal renewal.They may be willing to join specialproject teams on a short-term or parttimebasis.3. Attend meetings of unemployed peoplewith skills in specialized occupations suchas engineering or teaching, to identifyskills that could be used in new businessopportunities.4. Analyze the skills of people you knowwho are currently out of work, seekingnew opportunities, permanently ortemporarily handicapped or disabled, orlimited to part-time participation in thework force by personal circumstances.Think of services or products that couldbe created using their individual or grouptalents.5. Investigate a project to determine whetherit could be handled by the under-usedtalent available to you.6. Conduct market research to find out ifthe service or product you are consideringis saleable.Key Questions• Who do I know with under-used skills,knowledge or talents?• Where can I find people who have under-usedskills?• How could I work with them to develop a newbusiness opportunity?• What kinds of business opportunities could Iexplore with people whose talents are currentlynot being used?• What customers exist for the product or serviceI am considering?14solutions for small business exploring business opportunities

Start a Co-operativeCo-operatives are found in business andcommunity sectors across B.C., including inthe forestry, fisheries, childcare, housing,entertainment, tourism, transportation,agriculture and high-tech industries.Legally, co-operatives operate much like otherbusinesses, but they are owned and operatedequally by their members, who are also theirshareholders. Each member of a co-op has onevote to ensure every member has an equalopportunity to participate in the decisionmakingprocess.Co-ops can provide a creative alternative totraditional businesses. By working together,co-operative members can pool resources forstart-up costs and achieve better purchasingpower, more dynamic joint marketing and lessindividual risk.Some Examples1. A hardwood marketing co-operative forprimary and value-added hardwoodproducers throughout B.C. has enabledmembers to develop a niche hardwoodmarket.2. A co-op offering office and businesssupport services to non-profit societiesand other community organizationsaffords economies of scale that enable theco-op to provide services such as wordprocessing, desktop design and printing atcosts lower than a society would pay aprivate company.3. An B.C. organic farm co-operative ismade up of citizens committed to theprinciples of organic farming and “buyinglocally.” Farmers hired by the co-opensure members and other localconsumers have access to high qualityorganic produce.4. A Vancouver Island co-operative joinseco-tourism businesses offering kayaking,hiking and other adventure tourismactivities. Membership in the co-operativeenables the businesses to pool resourcesand marketing.5. A group of GIS mapping students formeda co-op that allowed them to bid onlarger contracts and gain valuable workexperience.How To Do It1. Identify the type of business you’d like tostart up.2. Determine whether you could add valueto or reduce the cost of the product orservice by joining with otherentrepreneurs in the same or a relatedfield to form a co-operative.3. Talk to other entrepreneurs who could bepotential members of the co-operative tosee if they are interested in forming a cooperativelystructured venture.4. Determine if a market exists for your cooperativelyoffered products or services.Key Questions• Can I add value to my products or services byoffering them in conjunction with otherentrepreneurs?• Are there other entrepreneurs who recognize theopportunity presented by offering the productsor services in a co-operative arrangement?• Can the co-operative structure achieve bettereconomies of scale, or add value to the productsor services, thereby passing along benefits to theconsumer?• Would taking a co-operative approach tostarting a business work for me?solutions for small business exploring business opportunities 15

Conduct Market Researchfor Other BusinessesCompanies may lack the time, resources orexpertise to do the necessary research instarting or building their business. Bybecoming a specialist in market research, asyour customers’ businesses grow, so does yours.Some Examples1. Recognizing an ongoing need forcompanies to continually source out newsuppliers, a business published a“Catalogue of Mail Order Catalogues.”Each mail order company in the cataloguepaid an advertising fee as well as a smallroyalty each time a catalogue was ordered.2. A computer company began specializingin the research of business ideas throughthe Internet and downloads theinformation directly to its customers’computers.3. Two recent graduates started a businessproviding guidance on successfullymarketing to youth, an increasinglyimportant consumer group.4. Many businesses consider exporting butare intimidated by the expense and theirlack of international “know-how.” AVictoria-based woman, who had travelledextensively in Southeast Asia, built asuccessful research business by askingseveral companies that wanted ideasinvestigated to share her fees and travelexpenses.How To Do It1. Identify small business owners who are inan expansion mode and require researchon other business opportunities.Approach them regarding the futureopportunities and work with them toresearch the best plans of action.2. Contact your local Chamber ofCommerce to identify potential businessesstarting in the area. Contact them directlyto offer research assistance on local areaneeds.3. Examine your market knowledge frompast professional or personal experiences.Identify businesses that would benefitfrom this knowledge and are willing topay for your expertise.4. Become a specialist in conductingresearch on targeted groups of consumersbased on age, gender, income and/orlifestyle. Publish this information andmake it available for sale.5. Assess the industries or sectors withresearch requirements (e.g., institutions,project oriented companies). Determinehow you might best meet their researchneeds-Internet, personal interview, survey,etc. Approach specific companies orindustry associations with your ideas.Key Questions• Where do I see the greatest market changes inthe next 5-10 years?• What groups of consumers or businesses will beimpacted by these changes?• What experience (personal or professional) do Icurrently have about other markets that wouldbe helpful to businesses in my community?• Can I identify individuals or businesses whohave a need for research and would be willingto pay for this service?16solutions for small business exploring business opportunities

Opportunities:Build on an Existing Businessor Consumer NeedManufacture and Market under LicenceThis means buying the rights to manufactureand/or sell a product. Such a licence can giveyou exclusive rights for a particular geographicarea and/or a specific market. The licence isusually granted for a defined period of timeand extending it may depend on yourperformance.Alternatively, someone in another area maybuy a licence to manufacture and/or sell aproduct to which you own the rights.Some Examples1. The Workhorse for woodworkers wasinvented in B.C. and the licence tomanufacture and sell it was sold to Blackand Decker.2. Publishing is a form of manufacturingunder licence. Authors create books, sellthe rights to publishers and receiveroyalties.3. A B.C. entrepreneur contacted anAmerican manufacturer of toy soldiersand obtained the rights to manufacturethe toys in Canada.How To Do It1. Decide what type of manufacturing youwould like to do.2. Locate a product to manufacture by:• Reading publications relating to newproducts in your field;• Looking for marketable products beingmanufactured in other countries;• Approaching companies that haverights to products they are not currentlymanufacturing;• Attending trade shows;• Contacting venture capitalorganizations;• Reading classified advertisements listedunder Business Opportunities innewspapers and magazines; and• Advertising for inventors to submittheir ideas to you.3. Identify and talk with potential customersto determine their need for the product.4. If you have a product and want to licencesomeone in another area to produce it,you can find a manufacturer by:• Contacting your local Chamber ofCommerce;• Contacting manufacturing associationsin Canada and other countries;• Advertising under BusinessOpportunities in the classified sectionsof newspapers and magazines;• Identifying manufacturers of similarproducts or products that wouldcomplement yours if packaged together;• Displaying your products at tradeshows;• Contacting venture capitalorganizations.5. Seek professional financial and legaladvice.Key Questions• What product or service is available elsewherebut not in my market area?• For what product or service could I purchasethe manufacturing and/or marketing rights?• For what product or service could I sell themanufacturing and/or marketing rights?• Is there a market for the product?solutions for small business exploring business opportunities 17

Market Someone Else’s ProductIf you are more interested in marketing thanproduction, you may choose to find a goodproduct made by someone else and assumefull responsibility for all aspects of marketingit. There is also potential for you to build onthis idea by offering a range of marketingservices to a large number of clients.Some Examples1. A B.C. sales agent located an innovativegame developed by a local inventor, andbecame its marketing agent. She managedthe marketing process-packaging,advertising and distribution.2. A marketing consultant markets theservices of other consultants. Herepresents them, promotes their talents,schedules their appearances and negotiatestheir contracts.3. Independent manufacturers’ agents oftenmarket similar but non-competingproducts for many manufacturers. Forexample, one agent sells sporting goodsmade by different producers.4. A Vancouver entrepreneur developed anon-line knowledge exchange auction,providing an arena for people to exchangetheir specialized expertise, ideas anddiscoveries where supply and demanddetermine the value of the knowledgeoffered and needed.5. A B.C. company markets an importedshopping cart, which doubles the capacityof a traditional grocery store hand-basket.How To Do It1. Look for products that have not beenmarketed at all (hard to find) or that havebeen marketed poorly.2. Look for new businesses that needmarketing services but have notestablished a marketing department.3. Look for existing manufacturers thatcannot afford to directly market to ruralareas or specialized niche markets.4. Ask business consultants and advisorsabout products they know of that needbetter marketing.5. Examine classified advertising sectionsand mail order advertisements to locateindividuals or small companies sellingproducts on a small scale. As you search,consider which products offer thepotential for larger volume sales. Look forgood products using inadequateadvertising.6. Contact marketing or advertisingagencies. They can sometimes provideleads for products they were unable totake on, for such reasons as a conflict ofinterest with another account or a fullclient list.7. Locate inventors’ clubs, attend theirmeetings and read their newsletters.8. Contact trade or industrial associationmanagement personnel, asking if theyknow of any good products or servicesthat need marketing.Key Questions• Where can I find a good product requiringmarketing?• Which products have a potential for increasedsales if marketing is improved? Is there a strongmarket for the product?• What marketing skills and services can I offer?18solutions for small business exploring business opportunities

Become an AgentBecoming an agent involves contracting to sellproducts or services for a fee or commission.The contract may be with either a producer ordistributor.Some Examples1. An Okanagan businesswoman became theOkanagan-Cariboo sales agent for a largeVancouver printing firm that producesbrochures and postcards.2. A sales agent in northern B.C. contractedwith several distribution companies to betheir representative in that area, sellingnovelties, records, magazines, electronicequipment and cassette tapes.3. An agent in B.C. is contracted by acomputer company to sell its equipmentto computer retailers in the province.How To Do It1. Identify a type of product or service youbelieve you can sell directly to customers.2. Find producers or distributors who needsomeone to handle the direct sales of theirproduct or service.3. Read classified advertisements listed underBusiness Opportunities, and check theemployment section for Sales AgentsWanted.4. Join sales and marketing groups, attendtheir meetings and read their newsletters.5. Contact manufacturers, read tradepublications and attend trade shows tofind items not being sold in your area.Key Questions• For what type of product or service could I actas a sales agent?• What manufacturers can I find who need theservices of a sales agent?• Is there a market for the products or services Iwould like to represent?solutions for small business exploring business opportunities 19

Become a DistributorWhen you become a distributor, you buy aproducer’s products or services and then resellthem to retail outlets, manufacturers or otherbusinesses. In some cases, you may sell theproducts directly to consumers.Some Examples1. A B.C. woman who owns a direct maildistribution company buys crafts fromLower Mainland artists and crafts people,and then advertises them for resale.2. A B.C. training company, which contractsto conduct management workshops forvarious companies, hires managementconsultants to act as workshop directors.The training company buys theconsultants’ services and resells them at ahigher price.3. A trucking contractor buys largequantities of topsoil and resells it by thetruckload to garden supply shops.4. A computer supply distribution companyimproved service and gained newcustomers by establishing a web site thattakes orders from businesses, then passesthe orders along to the manufacturers fordelivery within 24 hours. With noinventory to carry and no doubleshipping costs, the company was able tocut its prices by 20%.How To Do It1. Analyze your current purchasing volumesand discounts to identify situations whereyou could take advantage of your buyingpower to act as a distributor.2. Find producers or manufacturers whowould give you exclusive rights todistribute their products in return forprepayment of orders.3. Find a producer who only wants tohandle large orders, but whose productsrequire distribution in small-order lots.This is an opportunity for you to becomea distributor and relieve the producer ofproblems relating to small orders.4. Find a group of retailers or customerswho have to wait for delivery of productsfrom a manufacturer because of distanceor production time. You may be able tobecome a distributor by carrying stock onhand and offering immediate delivery.5. Look for advertisements underDistributors Wanted in trade magazines,and for advertisements under BusinessOpportunities in the classified sections ofnewspapers.6. Contact manufacturers, read tradepublications and attend trade shows tofind items without local distributionnetworks.Key Questions• What producers can I find that require adistributor for a product or service?• What product or service could I buy, stock andwholesale in my region?• Could I distribute the product profitably?• What potential retailers or customers haveindicated a need for the product I am thinkingof distributing?20solutions for small business exploring business opportunities

Become an Import Distributoror AgentAn import distributor or agent bringsproducts and services from another countryinto Canada for distribution and resale. Awide variety of products and services areavailable around the world, and manyproducers are looking for distributors oragents in Canada to expand the market fortheir goods and services.An import distributor buys products forresale, while an import agent sells products ona commission basis.Some Examples1. A local businessman could not find highqualityhair-pieces in Canada, but locateda supply in Germany. He now importsthem, along with waterproof tape, for theCanadian market.2. A businesswoman had a health problemand could not find a needed medicalapparatus of sufficient quality in Canada.She searched abroad, found a suitablemodel in Europe and is now theCanadian importer for this equipment.3. Each year, a company established byyoung B.C. entrepreneurs importsChristmas cards in bulk from the U.S.The cards are then packaged in 15-cardboxes and resold. This is an example ofimporting, packaging and breaking bulk.4. A B.C. company imports hand-craftedostrich and buffalo leather products fromAfrica, selling them to retailers andon-line.How To Do It1. Read overseas trade magazines.2. Identify marketable items made in othercountries and not currently available inCanada. Foreign consulates in Canadacan be an excellent source of thisinformation.3. Contact trade associations and consulatesin other countries to ask for informationon possible import products.4. Identify a client group with special needsthat can be met only by products fromanother country.5. Look for new and innovative items madein other countries by travelling to thosecountries or reading advertisements intheir magazines.6. Join import/export associations, read theirnewsletters and attend their meetings.7. Look for products that have beensuccessfully imported to other countriesbut have not been imported to Canada.8. Ask friends who travel frequently aboutproducts they may have seen that couldbe successful in the Canadian market.9. Ask potential customers whether theywould buy the product you want toimport.Key Questions• What products or services can I import to sellin Canada?• What needs in the Canadian marketplacecould be met by imported products or services?• Taking into consideration currency exchangerates and shipping costs, is it profitable toimport these products or services?• Is there a Canadian market for the product orservice I am thinking of importing?solutions for small business exploring business opportunities 21

Become an Export Distributoror AgentAn export distributor promotes and shipsCanadian-made products and services to othercountries. Pacific Rim countries, the UnitedStates and the European Economic Unionpresent particularly good export distributionopportunities for B.C.Some Examples1. A Canadian couple vacationing in NewZealand noticed that motorcycles therehad very few accessories. They checkedand discovered that there was a lack ofsupply. When they returned to Canada,they immediately contactedmanufacturers of accessories and began toexport these parts to New Zealand.2. A B.C. company makes skid plates formufflers and exports them to a truckmanufacturing company in the UnitedStates.3. A B.C. firm manufactures mobilebarbecue carts, which are similar tomobile popcorn stands, and exports themto Southeast Asia.How To Do It1. Contact local producers who may want tosell their products in other countries.2. Identify a country to which you wouldlike to export, then contact localproducers of goods for the rights todistribute them in that country. Manyprovincial and federal departments maybe able to provide assistance with this.3. Read provincial and federal governmentpublications about export opportunities.4. Examine foreign countries to study theirneeds for types of products made inCanada. The public library may be ofhelp with this.5. Contact Canadian foreign trade consulsto identify needs that require service inother countries.6. Read books on how to export-these canbe readily found in libraries andbookstores.Key Questions• What local products and services could I exportto other countries?• To which countries would I like to export localproducts?• Is it profitable to export these products orservices, considering currency exchange ratesand shipping costs?• Is there a market for the product or service Iwant to export?22solutions for small business exploring business opportunities

Replace ImportsImport replacement means finding a productor service currently being imported intoCanada from another country, then replacingthe imported item by producing a similarproduct locally.Some Examples1. A line of farming irrigation equipmentwas imported from Europe. A B.C. firmbegan making similar equipment as animport replacement in the local market.2. Propellers for ultra-light planes wereimported from the U.S. A B.C. companybegan manufacturing the propellers toreplace the imported parts.3. A Victoria restaurant that purchasedprimarily imported produce initiated apartnership with local farmers, and nowoffers mostly local produce in its menuitems.4. A Canadian company supplies the softdrink and food processing industries withan alternative to imported cane sugarusing high fructose corn syrup.How To Do It1. Identify a product or service importedinto Canada that you could producelocally. To find such a product or service:• Examine import publications andimporters’ catalogues;• Contact purchasing agents to identifygoods that are purchased by localindustries; and• Examine the products around you tofind out where they are made.2. Determine your areas of expertise, andthen analyze imported products related toyour talents to find out which could beproduced locally.3. Find out which imported products withinyour fields of expertise are too expensivebecause of shipping costs or tariffs.Determine whether you could producereplacement goods locally, and lower thecost to customers.4. Identify and talk to potential customersfor the product or service you areconsidering, to determine whether there isa market for a locally produced item.Check this out thoroughly, as potentialcustomers may continue to buy theimported item if the local item differs insome way-for example, in quality, colouror construction material.Key Questions• What imported product could I replace byproducing it locally?• Have potential customers said they would buy alocally made product?• Have I thoroughly researched the product orservice I am considering, to make sure it equalsor surpasses the standard set by the importedarticle?• Will producing the product or service locallyresult in cost-efficiencies for the customer?• How will exchange rates and labour practicesrelated to the imported product affect myprofitability?solutions for small business exploring business opportunities 23

Buy an Existing BusinessSometimes, it is possible to buy an existingbusiness that is suitable to your talents orneeds rather than establishing a new one.Buying an existing business is a widely usedmethod of getting into business.You may choose to buy a business that is notdoing well, believing that you can use yourknowledge and talents to make it succeed. Oryou may buy a business that is alreadysuccessful, especially if it is available at a goodprice due to the current owner’s desire to retireor sell for other reasons.In some cases, you may wish to buy a businessand resell it quickly-your success here woulddepend on your ability to identify businessesthat can be turned around quickly and resoldat a profit.Some Examples1. A B.C. businesswoman purchased asuccessful business contracted to test thehearing of employees working in noisyenvironments. The original owner wantedto become less active and free up capitalfor other uses.2. A company providing training services toon-line investors was in difficulty due topoor management and marketing. Theowner approached a partner with thenecessary skills who bought half thecompany. It is now highly profitable andexpanding into many new products,services and markets.3. A businessman loaned money to ownersof a clothing store, and later found outthat the company was about to fail. Hemet with the firm’s bank and madefinancial arrangements to buy thebusiness for the amount of the originalloan. Through good management, hesaved the business.4. A hotel was in receivership and a localbusinessman agreed to operate it for thereceivers. When the hotel began torecover, the creditors agreed to let thebusinessman buy it with no downpayment. He now owns a successful hotel.How To Do It1. As a first step, learn about the process byseeking out books that explain how tobuy a business.2. To find businesses available for purchase:• Check newspapers under BusinessOpportunities or similar headings;• real estate agents;• Read ads in trade publications;• Visit businesses that interest you, toobserve their operations.3. Check out businesses you would like tooperate, looking for owners who want toretire or sell for other reasons such asboredom, partnership disagreements,divorce, or poor health.4. Look for businesses that are not doingwell, and which your talents, knowledgeand energy could make successful.5. Identify and talk with potential customersto determine their need for your product.6. Before considering purchasing a business,talk to your banker, accountant andlawyer.Key Questions• What types of businesses am I interested in andwould enjoy operating?• What types of businesses could I run, based onmy previous experience?• What existing businesses are for sale that Icould buy and operate?• What funds are available to me for thepurchase of a business?• Why is the business for sale and what is thebusiness’s reputation?• Is client loyalty to the owner personally orto the business?24solutions for small business exploring business opportunities

Buy a FranchiseBuying a franchise involves buying the rightsand support systems to own and operate abusiness that has been designed by someoneelse. It is a common way of establishing abusiness.Usually, franchise networks are based on asuccessful business established in one originallocation. Franchise outlets may then beestablished in other locations. Each locationuses the same company name, operatingsystem, purchasing procedures andmanagement system, and benefits fromgeneral advertising. Each franchise outletreceives varying degrees and types of franchisesupport.Some Examples1. A B.C. businessman purchased afranchised mobile furniture restorationbusiness which uses exclusive, patented,environmentally conscious techniquesthat allow work on-site in less time thanconventional refinishing and repair.2. Many fast-food outlets such asMcDonalds( and Subway( are franchiseoperations.3. Other common types of businesses thatmay be franchised are real estate agencies,hair salons, restaurants, building supplyoutlets, dry cleaners, picture-framingshops, lawn maintenance services, fastprinting services, quick photo processingoutlets, automobile repair and partsshops, sports equipment stores, computerstores, video rental outlets, home securityfirms and machine vending services.How To Do It1. Find and read publications relating tofranchising to learn about its advantagesand disadvantages. Good sources ofinformation include local libraries, yourlocal Chamber of Commerce and theGovernment of British Columbiapublication Resource Guide for BritishColumbia Businesses: Information andGuidelines.2. Identify types of franchise operations youwould like to explore by:• Reading newspaper and magazineadvertisements;• Reading franchise trade journals;• Joining franchise trade associations; and• Noticing franchised businesses in otherlocations that might succeed in your area.3. Work at a franchise outlet of a businessthat interests you.4. Attend franchise trade shows.5. When you have selected the type offranchise that most interests you, identifyand talk to potential customers todetermine their need for your products orservices.6. Talk to the owners of a few existingfranchises who can tell you what it isreally like being a part of the franchise inwhich you are interested.Key Questions• What kind of business would I like to own as afranchise? Is it a business I would enjoy?• Is there a market for the product or service Iwould be offering?• What is the reputation of the franchise?• How much will the franchise cost and what arethe monthly royalties?• Do I have access to the necessary funds?• Why is the franchise outlet for sale?• Will my previous business experience support thetype of franchise operation I prefer?solutions for small business exploring business opportunities 25

Recycle an Existing ProductWhen you recycle an existing product, youtake a product that has come to the end of itsuseful condition and either rebuild it to a “likenew” state or remanufacture it into anotherproduct.Some Examples1. A company collects used computerprinter cartridges, re-inks them and sellsthem as reconditioned units.2. A B.C. man reconditions non-working orunwanted household appliances and thenresells them.3. A company takes motors out of junkedcars and remanufactures them intoinboard marine motors.4. A B.C. firm takes the excess wood oilfrom mills and recycles it into anenvironmentally friendly furniture oil.5. A B.C. clothing designer and secondhandclothing store owner adds newelements to used clothing and sells theserenewed fashions at a higher price.How To Do It1. Find a product that:• Wears out with use over time;• Can be rebuilt by adding new parts orreconditioning old parts to originalstandards; and• Is expensive enough when new towarrant a rebuild, therefore savingcustomers money.2. Find a product with components that canbe used to make a different product. Toidentify a product with recyclable parts,look for one that:• Wears out with use over time;• Is not worth rebuilding to a “like new”condition;• Has one or more components that arestill in usable condition; and• Can become an inexpensive source ofparts or materials that would cost moreif purchased new.3. Find out if the used products or parts canbe obtained easily, economically andreliably.4. Develop a procedure to disassemble,rebuild and reassemble the components.5. Determine whether there is a market forthe reconditioned or newly createdproducts, by talking with potentialcustomers.Key Questions• What used product could be rebuilt or turnedinto a new product?• Can the rebuilt or remanufactured product besold at a lower cost, saving consumers money?• Is there a market for the reconditioned or newitem?• Can the recycling procedure be carried outpractically and efficiently?26solutions for small business exploring business opportunities

Add Value to Existing ProductsYou add value when you buy an existingproduct or service and then add materials,processing or services to create a more valuableend product. You then resell the product in itschanged form.Value may be added by:• Putting the product through an additionalprocess;• Combining the product with otherproducts;• Offering the products as part of a largerpackage of services;• Removing something to change the use ofthe product; and• Increasing levels of service.Some Examples1. A student who operated a home paintingbusiness expanded the operation bybuying unfinished furniture, thenpainting and reselling it.2. A B.C. businessman bought irrigationpipes, rolled them into oval shapes,screwed fittings onto them and marketedthem as sailboat masts.3. A company in B.C. buys wood lattices,putting them through an assemblymachine to create assembled sections oflattice fencing.4. A B.C. co-operative provides commercialkitchen facilities to small producers ofvalue-added agricultural and foodproducts. This allows farmers to turn theircrops into specialty jams, chutneys, jerky,canned goods and other products formerlyprepared by secondary producers, therebyincreasing theirprofit margins.solutions for small business exploring business opportunities 27

How To Do It1. Find an existing product or service to useas a base, then think of an additionalprocess, material or service that could beadded to create a new product. Forexample, a product or service may bemore successful if an additional elementsuch as packaging or distribution isadded.2. Identify a process or service that youcould provide, then look for types ofexisting products or services that could beused as a base for your desired operation.For example, if you can provide apackaging service, look for products thatwould become more valuable if packaged.3. Find an existing product that could bechanged into a different or improvedproduct by adding or subtracting one ormore elements. If additional elements arerequired, locate a source for these anddevelop a method of adding them. Ifelements must be subtracted, find aworkable way of carrying out thatoperation.4. Find a client group with needs that arenot being met by existing products andservices. Make the required changes toexisting goods to adapt them.5. Find a product that does not work well,or is not well accepted by a client groupbecause of its inadequacies. Then improveit by adding or altering elements.6. Talk with potential customers to find outwhether there is a market for the productor service you are considering.Key Questions• What can I add to a product or service I amaware of to make it more marketable beforereselling it?• What products or services can I think of thatwould benefit by adding, subtracting oraltering elements? Is this a product or service Ican provide?• What potential customers have said they wouldpurchase the product or service I want toprovide?28solutions for small business exploring business opportunities

Substitute Materials inExisting ProductsAn existing product can sometimes beimproved by changing the type of material itis made of. This can make the product lighter,stronger, more flexible, cheaper to produce ormore environmentally sound.Some Examples1. A B.C. company substituted plastic formetal in fishing lures. The lures are nowless expensive to produce, lighter inweight and easier to keep shiny.2. A plastics manufacturer in Vancouvermakes plastic buckets for grain elevators.These are an improvement over the metalbuckets previously used, because they arestronger, do not dent and do not corrode.3. By changing their packaging from woodcrates to corrugated cardboard boxes, awholesale gift company was able to reduceits shipping costs due to the lighterweight.4. A B.C. company makes “lumber” fromrecycled plastics, producing maintenancefreesynthetic lumber more durable thantraditional lumber.How To Do It1. Examine products to see where theymight be improved through the use ofsubstitute materials.2. Consider any material that you have ingood supply, analyzing its characteristicsto determine which products use similarmaterials and might benefit from asubstitution.3. Find production processes that areinefficient due to the materials currentlyused. Find ways to improve the process byreplacing the inadequate materials. Forexample, materials may be inadequate ifthey are too expensive, too difficult towork with, unsafe, in short supply orconsumed in the process. Look forsubstitute materials that are cheaper,easier to work with, safer, in greatersupply or reusable, or that improvequality.4. Talk to potential customers to determinewhether they would purchase theimproved item you want to provide.Key Questions• What products can I think of that could beimproved by substituting one or morematerials?• What materials do I have that could besubstituted for an inferior material currentlyused in a product?• What products would result in improved costsfor the consumer if materials were substituted?• What customers have stated they wouldpurchase the improved product?solutions for small business exploring business opportunities 29

Package or UnpackageExisting ProductsOpportunities exist to package, repackage orunpackage existing products.Commodities sold in bulk may be packaged(called “breaking bulk”), while itemstraditionally sold in packages may be offeredin bulk. Items already supplied in a packagedform may be repackaged to make them moreattractive, more convenient, reusable, easier touse, easier to preserve or biodegradable.Some Examples1. A produce distributor buys strawberries inbulk, sorts them into smaller amountsand packages them in attractive boxes forresale.2. A natural beauty products company sellsall of its products in bulk-products thatare traditionally packaged throughoutmost of the industry.3. A company buys quantities of steak andlobster tails, packages them together assteak and lobster dinners, and sells themto food stores as gourmet meals.4. A gift basket company buys specialtyitems in bulk cases and then repackagesthe items into individual theme baskets.5. A company identifies food sold inpackages and offers these products in bulkwith no packaging.How To Do It1. Look for a product that is poorlypackaged and think of improvements.2. Find a product that is normally soldwithout a package and devise a packagethat would increase its sales.3. Locate a product that can be purchased inbulk quantities and repackaged intosmaller amounts.4. Find two or more separate products thatconsumers usually buy or use at the sametime. Then plan a package that combinesthe items, and offer them for sale as asingle unit.5. Look for products that are usuallypackaged, and consider whether youcould sell them in bulk, to lower the priceor address the environmental concerns ofconsumers.6. Talk to potential customers to find outwhether they would buy the alternativelypackaged product.Key Questions• What products or commodities could bepackaged, repackaged or unpackaged to sellbetter?• Could different packaging open up newmarkets for a product or service?• What alternative markets exist for productscurrently offered just one way?• Could unpackaged goods be packaged? Couldpackaged goods be unpackaged?• What markets exist for the product whosepackaging I am considering changing?30solutions for small business exploring business opportunities

Improve an ExistingProduct or ServiceFrequently, an existing product or service canbe improved by:• Enhancing the quality;• Reducing the cost of production;• Reducing the cost to the consumer;• Improving durability;• Increasing power;• Making it larger or smaller;• Making it more convenient to use;• Making it more comprehensive; or• Updating processes, materials ortechnology.Improving an item by any of these meansincreases its value. Improving a product orservice is different from adding value. Whenyou improve a product, you use the idea fromthe previous product, but improve on it tocreate a completely new item. When you addvalue, you purchase a product to use it as abase for your additions or changes.Some Examples1. A film processing outlet improved serviceby processing film much faster thancompeting firms.2. A B.C. woman writes instruction manualsfor computer software programs. Themanuals are easier to use and understandthan those enclosed with the software.3. A B.C. company manufactures pickuptruck and recreational vehicle bumperswith storage space for equipment andsupplies.4. A Kelowna masseuse provides an on-sitemassage therapy service where she travelsto offices with a specialized chair to giveworkers neck and shoulder massages.How To Do It1. Select an existing product or service thatinterests you and analyze the strengthsand weaknesses of firms that currentlyprovide it. Identify areas that could beimproved and think of new ways youcould provide the same product orservice.2. Identify faults in existing products andservices that you could eliminate in asimilar product or service. Imaginevarious alternatives that could be tried-askyourself “What if . . .?” to think ofcreative ways to improve existing productsand services.3. Talk to potential customers to find out ifthere is a market for the product orservice you plan to offer.Key Questions• What products or services need improvements?• How could I improve an existing product orservice? Would this make it more marketable?• Will my improvement to a product or serviceadd value or reduce the price for the consumer?• How can I provide a product or service that isbetter than those that currently exist?• Is there a market for my improved productor service?solutions for small business exploring business opportunities 31

Imitate a SuccessfulProduct or IdeaIt may be possible to find a successful product,service or other business idea and imitate it.Some Examples1. A clothing manufacturer imitates highfashionoriginals and offers them at alower price.2. A Victoria businessman developed an all-Canadian trivia board game whichquickly became one of the best-sellingindependent board games in Canada.3. A B.C. cookie shop is an imitation of asuccessful New York operation in almostall respects except the name.4. A Canadian company started up an onlinegrocery deliver service through localgrocery stores, based on a similar servicein the U.S.How To Do It1. Look for what is selling well and assessfuture market potential.2. Determine the key factors responsible forthe success of a product or service.3. Find out how to make a product or findone that resembles an item you haveidentified as successful. Make sure youcould produce it in a cost efficient way.4. Identify potential products or services thatcan be imitated because they are notavailable in a particular market, value isadded, cost is improved or they meet theneeds of a particular niche market.5. Before you commit yourself to theproduct or service of your choice, checkcarefully for potential conflicts orinfringements relating to patents,copyrights or licences.6. Talk to potential customers to find out ifthere is a demand for the planned productor service.Key Questions• What items or services are selling well? Is thatmarket likely to continue?• What popular products or services could Iimitate and make available to a new market,add value to or improve the cost?• What potential customers would purchase myimitation?32solutions for small business exploring business opportunities

Find a Good ProductThat Has FailedA good product or service sometimes failsdue to inadequate marketing, inefficientproduction methods or other reasons. In suchcases, an opportunity still exists to make theproduct succeed, by identifying the causes ofthe previous failure and eliminating them.Some Examples1. A B.C. inventor failed to market a footmassager successfully. A woman withmarketing knowledge and experience tookover the product and helped it to succeedby using different marketing techniques.2. A restaurant with a good concept failedbecause of poor management. A secondtry under new management wassuccessful.How To Do It1. Ask bankers and accountants if they knowof any good products or services that havefailed due to poor management,marketing or other factors. Considerwhether any of these could be improvedfor a second attempt.2. Look for business failures and analyze thecauses to identify situations that youcould try again after solving the originalproblems. Such failures can be located bywatching for bankruptcy notices, talkingwith bankers, reading auction notices,reading trade newsletters or talking toaccountants who specialize in receivership.3. Look for ideas that failed because theywere ahead of their time, but might besuccessful if re-introduced.4. Look for ideas that were successfuloriginally but lost popularity and failed.Some of these may be ideas whose timehas come again. To rediscover old ideas,read old magazines and catalogues.5. Advertise in newspapers and magazinesfor good ideas or products that peopletried to market, but failed.6. Identify your strengths and look forsecond chances in areas where your talentscould be the deciding factor for success.7. Talk to potential customers to find outwhether they would buy the product orservice.Key Questions• What services or products have failed inthe past?• Could any of these be made successful nowthrough new marketing methods, newmanagement techniques, better financialsupport or different business strategies?• What changes would be needed to successfullyre-introduce the product or service I amconsidering? Could I carry out those changes?• What potential customers have indicated there-introduced product or service couldsucceed now?solutions for small business exploring business opportunities 33

Offer Discount Goods for ResaleIf you can obtain goods from a low-costsource, you can discount them-resell them at alower-than-market price.Some discount sales operations are set up totake advantage of a short-term opportunity,while others may be operated as long-termbusinesses, when there are ongoing reliablesources of supply.Some Examples1. A retail store in B.C. acts as a liquidatorby buying time-expired, bankruptcy,production over-run and manufacturers’clearance stocks and then reselling theitems at discount prices to consumers.2. An on-line company offers a wide varietyof discount items to customers forpurchase over the Internet.3. A discount sporting goods store offers itsproducts in a retail outlet, by mail orderand over the Internet.4. A woman buys Christmas cards thatindividuals and companies have not used,repackages them and resells them at adiscount.How To Do It1. Decide what type of goods or services youwant to market at a discount, anddetermine whether there is a marketfor them.2. Locate sources of supply that will sell toyou at an extremely low price. These mayinclude:• Bankrupt companies;• Manufacturers with seconds;• Companies with custom orders notsold;• Firms with an oversupply of goods theycannot sell;• Companies with out-of-season leftovers;and• Companies in need of immediate cash.3. To assist you in locating these sources ofsupply, contact:• Sales agents;• Discount operators in other noncompetitivemarkets;• Bankers and receivers;• Trade associations’ staff members;• Accountants;• Distributors; and• Marketing consultants.4. Join a purchasing group that has been setup to buy goods at a discount.5. Make sure you have an adequate source ofsupply before you start selling.6. Talk to potential customers to ensurethere is a market for items you want tosell at a discount.Key Questions• Where can I find a low-cost source of suppliesthat I could buy and resell at discount prices?• If I am setting up a long-term operation, is mysource of supply reliable and ongoing?• Is there a market for the items I plan to offer ata discount?34solutions for small business exploring business opportunities

Customize Existing ProductsUnique client groups can be served byadapting or tailoring an existing product tomeet the special needs of a particular group ofpotential customers. In some cases, this canmean meeting the needs of a unique clientespecially for them.The needs of these groups could relate tocharacteristics (left-handed, disabled), lifestyles(occupation, leisure activities, income, age),assets (cars, boats, houses) or other factors.Some Examples1. An existing educational, recreational orother community service may be offeredin a foreign language to meet the needs ofa particular ethnic group(s).2. A store was established in B.C. to supplyproducts for left-handed people.3. A B.C. woman opened a laser-engravingservice where boat-owners could bringglasses, dishes, cutlery and other objectsand equipment to have thempersonalized.4. A B.C. company produces embroideryand screen printing of logos on clothingor design lines to service corporate clients.5. A company provides home renovationsand consulting on upgrading homes andoffices for people with allergies andenvironmental sensitivities.How To Do It1. To find a unique client group you wouldlike to serve:• Analyze telephone directory YellowPages to find groups with specificinterests, activities or occupations(truckers, sports groups, doctors, brides,seniors);• Check with your local Chamber ofCommerce or library for directories ofassociations;• Analyze newspaper stories to identifyspecial interest groups;• Observe unique sections of your city(for example, ethnic areas, or areas withlarge numbers of retired people oryoung children);• Identify groups that live in remote orunique regions; and• Review magazines produced for specialinterest groups.2. Analyze the special needs of a group by:• Studying various characteristics of thepeople; and• Observing their activities.3. Identify products and services that are notoffered to specific groups, or are not welltailoredto their needs.4. Find products, services, resources or assetsthat can be adapted to meet a group’sspecial needs, or create new products for agroup.5. Talk to members of the client group todetermine whether there is a market forthe product or service you have in mind.Key Questions• Where can I find a group of people with specialneeds that are not being addressed in themarketplace?• What specific group of people could I serve withspecialized products or services?• What product or service could I modify to meetthe unique characteristics of the group I wantto serve?• Have I talked with the people for whom I amconsidering providing a specialized product todetermine whether there is a market for it?solutions for small business exploring business opportunities 35

Opportunities: Build onChanging TrendsCater to Discarded MarketsCatering to discarded markets means enteringareas left behind by other companies that:• Have become so large they cannot or donot wish to handle small orders;• Are competing at the leading edge of atechnology and have decided not toservice markets based on oldertechnologies; or• Are expanding into different markets soquickly that they are unable to service allof them properly.Some Examples1. Large airlines that cannot afford to servicesmall communities have left a discardedmarket for smaller commuter carriers topick up.2. Obtaining parts for antique cars, tractors,boats and other equipment is difficult forhobbyists and collectors with interests inthose areas, since the originalmanufacturers often no longer supplythese. Other companies sometimes movein to service these discarded markets.3. A B.C. company developed a web site toprovide customers with out-of-printbooks.4. After a period of time when milk wasavailable only in cardboard containers,some dairies have now returned tosupplying milk in bottles. They areaddressing a discarded market-people whostill prefer bottled milk.How To Do It1. Identify areas of technology into whichmany companies are moving, then analyzethe markets left behind as a result.2. Locate companies that have changed theirproducts or services, then find outwhether some customers will requireservices or products of the previous type.3. Identify products that become obsoletequickly but remain useful for a muchlonger period of time. Look for servicingopportunities that have been dropped oroverlooked by these companies as theycontinually focus on the newest models toarrive in the market.4. Look for industries that have taken a newdirection to appear modern, then analyzethe opportunities created by the moveaway from the previous way of operation.5. Talk with potential customers to find outif they would buy the product or serviceyou are considering.Key Questions• What industries or companies have recentlymade major changes as a result of newtechnology, products or approaches to business?• Which of these changes may have resulted inprevious markets being discarded or left behind?• What other discarded markets do I know of?• How many potential customers have indicatedthere is still a need for the discarded services orproducts I have in mind?36solutions for small business exploring business opportunities

Take Advantage of a Market SwitchWhen groups of consumers move from onetype of product to another on a long-termbasis, new business opportunities can result.Market switches create demands for newproducts and services.Some Examples1. A computer repair service established bytwo vocational school graduatesanticipated the market switch to CD-ROM. Their shop started to specialize instocking and repairing CD-ROM disccomponents.2. To take advantage of the market switchfrom large to small cars, a companydesigned and manufactured bicycle andski racks for small cars. Another firmbegan to specialize in remanufacturingengine and cylinder heads for Japaneseand European cars.3. A Canadian company began supplyingretailers, restaurants and other businesseswith point-of-sale equipment whenconsumers began switching to point-ofsalepurchasing.• Analyzing changes in your own buyinghabits, especially when you stoppurchasing an item that has becomeobsolete and begin to buy replacementitems with entirely differentcharacteristics.2. Find products that are associated with amarket switch by:• Analyzing the advantage of newproducts to find those that are greatlysuperior and will likely replace moretraditional items; and• Looking for new technologies or newproducts based on new concepts thatare revolutionary for an industry.3. Look for a major product or service thatis needed to meet changing consumerdemand, but has not yet been provided.Then find a way to provide the requiredproduct or service.4. When the major product in the marketswitch already exists, look for relatedservices or products that can be used inassociation with the major product.5. Talk with potential customers to see ifthere is a demand for the product orservice you would like to provide.How To Do It1. Discover major changes in consumerbuying habits by:• Reading market research reports;• Keeping in touch with current fads thatcould turn into long-term changes;• Observing new products that aregrowing in popularity;• Seeking out trade association researchforecasts; andKey Questions• What market switches have recently takenplace?• Are any market switches occurring now?• How can I take advantage of these changes inconsumer buying habits?• Can I address a current market switch toproviding the major product or service?• Can I provide secondary products or servicesrelated to a new major product?• Have potential customers indicated a need forthe product or service I am thinking of offering?solutions for small business exploring business opportunities 37

Capitalize on a Growth TrendGrowth trends occur when industries oractivities interest increasing numbers ofpeople. You can capitalize on such growthtrends by offering a product or service relatedto the growing industry or activity.Some Examples1. To capitalize the growing trend towardnatural health care, many B.C. drug storesnow offer natural health care productsalong with conventional products.2. A woman who manufactured facial creamexpanded her marketing strategy toencompass men as well as women, takingadvantage of men’s increasing interest inskin care.3. The growing interest of tourists in ecotourismled a tourism adventure companyto specialize in ecologically minded tours,providing travellers with unique,authentic cultural experiences thatinterfere with the natural environment aslittle as possible.4. Increasing numbers of people arebecoming interested in personalenrichment, growth and development. InB.C., as elsewhere, many companies andindividuals provide seminars, conferences,courses, books, consultation and retreatsto meet the needs of this market.5. A B.C. businesswoman in a touristdestination community recognized thegrowing interest in kayaking and openeda kayak rental shop offering lessons, toursand a bed and breakfast.How To Do It1. Identify growth trends by:• Reading books and magazines thatdescribe future social and economictrends;• Talking to community trendsetters;• Observing growth trends in other areasor countries, especially the U.S., and inparticular, California;• Observing the expansion of new retailspecialty stores;• Attending speeches by innovativeleaders, members of think tanks ormarket analysts; and• Asking frequent travellers for theirimpressions of growing trends or factorsin other places that may affectdirections of local society.2. Make a list of growth trends and selectthose that interest you most. Considerhow your knowledge, experience andabilities could help you to meet thedemands of new market trends.3. Select specific growth trends to study indepth. Find out the causes, main issues,effects on society and future possibilities.4. Watch for opportunities to introduceproducts or services that fit into a trend.5. Talk to potential customers to find outwhether they would purchase the productor service you want to offer.Key Questions• What current growth trends can I identify?• What activities or industries are likely toexperience growth in the future?• What products or services could I provide thatwould fit into a current or future growth trend?• What potential customers have indicated aneed for the product or service I amconsidering?38solutions for small business exploring business opportunities

Take Advantage ofNew Fashions or FadsFashions and fads are constantly changing orbeing “re-invented.” You can take advantage ofthis by providing a product or service thatcaters to contemporary fashions, lifestylesor fads.Such a product or service may be somethingthat does not yet exist, or it may be an itemthat already exists but would benefit fromgreater promotion. Alternatively, it could besomething that existed in a past era-an ideaready to be recycled.Fashions offer longer-term businessopportunities, while fads are more intense andprovide short-term opportunities. Because afad experiences a rapid rise and fall inpopularity, the opportunities presented requirea more finely tuned response, first to providegoods, then to reduce inventories.Some Examples1. Hemp has become a popular product.A B.C. clothing designer has capitalizedon this trend by designing hempfashions and selling to retailers in B.C.and the U.S.2. Many companies are targetting the“young urban professional” lifestyle,offering expensive foreign cars, highqualityhomes and furniture, high fashionclothing and trendsetting dining-outexperiences.3. Recognizing an opportunity presented bythe Beanie Baby fad, an entrepreneur hadplastic tag protectors manufactured to sellto collectors to protect the condition oftheir collection’s authentication tags.4. The growing popularity of “boarding”-skateboarding, surfing and snowboardinghasbeen accompanied by related clothing.A B.C. company distributes boardingfashions to stores selling and servicingboarding equipment.solutions for small business exploring business opportunities 39

How To Do It1. Choose a basic subject area as a focus. Forexample, your interests, experience andskills may cause you to select toys,clothes, lifestyle, recreation or business.2. To identify current fashions and fads:• Pay attention to magazines andtelevision advertisements;• Read leading-edge trade publicationsrelating to industries that interest you;• Read popular magazines that cater tofashionable and trend-setting people;• Talk to people you know to getopinions on current and future fashionsand fads;• Observe the fashions and fads on thestreet around you;• Pay attention to fashions and fads inthe U.S. and other parts of the world;• Attend trade and fashion shows; and• Develop contacts in the world’s majorfashion centres and regularly exchangeinformation with them.3. Think of ways to transfer fashion ideasfrom other industries to your own areas ofinterest.4. Initiate and promote fashions frompopular movies, television shows orlifestyles of famous people.5. Develop fads for special events oroccasions, for example sports events,annual celebrations or holidays,conferences or concerts.6. Talk to potential customers to determinewhether there is a market for the productor service you want to provide.Key Questions• In what industry would I like to promote afashion or fad?• What items from past eras are ready to becomepopular again?• What upcoming events could I use as the basisfor a fad?• Is there a market for the idea I have in mind?40solutions for small business exploring business opportunities

Take Advantage of Changesin Government RegulationsGovernment regulations have a significantimpact on business. As governmentmodernizes and updates its regulations andoperations, business opportunities may arise.Some Examples1. When the federal government made itmandatory for boaters to get a pleasurecraft operator’s licence, a B.C.entrepreneur started up a pleasure boater’straining service.2. When the Canadian Mint phased out twodollar bills and replaced them with coins,an innovative inventor developed acompartment for holding the new coinsthat fit into existing cash drawers.3. Recognizing the opportunity presented bythe provincial legislation requiringmunicipalities to reduce solid wastedumped in landfills, a B.C. companybegan offering a plastics recycling servicepromoted widely by the regional district.4. When liquor laws in the provincechanged, a B.C. winery opened an on-siterestaurant serving culinary creations tocomplement its wines.5. Seeing the need for businesses to be madeaware of changes in governmentregulations with an impact on theiroperations, a group of consultants beganproducing a monthly newsletter updatingits customers on relevant regulatorychanges.6. When a B.C. municipality passed lawsbanning smoking from all publicbuildings, a local pub began to marketingto the non-smoking market. Another pubcatered to its smoking customers byrenovating its outdoor patio to create aninviting area for smokers to frequent.How To Do It1. Cultivate an approach of seeing changesas opportunity.2. To recognize business opportunitiespresented by regulatory changes, stayabreast of government activities:• Monitor the news reported bynewspapers, radio and television;• Check the provincial and federal websites regularly for news releases;• Keep informed about local events; and• Attend municipal council meetings.3. Create a product or service that takesadvantage of regulatory changes.Key Questions• What regulatory changes have recentlyoccurred?• What business opportunities may arise fromthose changes?• Is there a market for the product or service Ihave thought of to capitalize on those changes?solutions for small business exploring business opportunities 41

Cover Market Gaps or ShortagesMarket gaps or shortages can occur when aneeded product or service is not available orwhen customer demand is greater than thecurrent available supply. Opportunities thenexist for someone to step in and meet thatdemand.Some Examples1. Each summer, the demand for rentalhouseboats was greater than the supply ofboats available in a resort area. A localcompany began building houseboats,selling them and renting them for theowners when they were not being used.2. A hotel employee noticed that there was ademand for a mattress repair service andnone existed. She quickly signed contractswith several hotels and opened a mattressrepair business.3. A computer store employee realized thatthere was no well-developed source ofsecond-hand computers for clients whocould not afford or did not need a newone. He opened a second-hand computerstore.4. A B.C. builder created a specialty serviceoffering 24-hour emergency home repairfor a yearly membership fee, whichprovides a “band-aid” initial disasterresponse. Actual repair or restorationfollows after the crisis has been resolved.5. A B.C. entrepreneur saw a need for amagazine targetted specifically to homebasedbusiness owners, providinginformation and advice not offered inexisting magazines on business andentrepreneurship. The magazine is nowdistributed across Canada.How To Do It1. To find situations in which neededproducts or services are not available orare in short supply:• Ask distributors, agents and retailerswhat items they have difficultyobtaining;• Check delivery items and availability ofre-orders of popular products andservices;• Ask companies to identify services thatthey need but cannot obtain; and• Listen to people you know when theycomplain about products they cannotfind or mention services they wish wereavailable.2. Look for potential supply shortagescaused by companies going out ofbusiness, changing their production focusor shutting down for periods of time. Youcan do this by:• Watching out for opportunities innewspapers, particularly on the businesspages;• Reading trade publications; and• analyzing lists of companies inreceivership or bankruptcy.Key Questions• What market gaps am I aware of?• What supply shortages am I aware of?• How could I find other market gaps andshortages?• What market gaps and shortages could I meetby providing needed products or services?• What potential customers have indicated thatmy perceived gap or shortage is genuine?42solutions for small business exploring business opportunities

Transfer a Concept from OneIndustry to AnotherOccasionally, it is possible to take an idea ormethod from one industry and successfullytransfer it to another.Some Examples1. A company that used a specific process tojoin electrical cables side by side appliedthe same technique to sailboat rigging.2. A B.C. entrepreneur started up a daycareservice for dogs-the other “children” inthe family-for families not wanting toleave their pet home alone all day.3. A video store realized that customers didnot like to carry video machines home, sothey set up a delivery system based on thefast-food delivery concept used by pizzaand Chinese food outlets.4. Concepts of computerized inventorycontrol were transferred to feed rationingin the cattle industry-each cow is fittedwith a device that permits computers toautomatically record and limit daily foodintake by controlling access to a feedingtrough.How To Do It1. Take note of any good ideas you see, andthink of other industries or settings wherethey could be applied.2. Identify a problem in one industry orsector of the economy, and look forpotential solutions in other industries thatcould be transferred.3. Develop methods of applying ideas fromone industry to the problems of another.4. Assess the potential effects of using ideasor procedures from one situation to solveproblems in another.5. Talk with potential customers to findout whether they would buy the productor service that results from thetransferred idea.Key Questions• What ideas or concepts do I know of that havebeen especially successful? In what industrieshave these been used?• Could these ideas be applied to anotherindustry? How?• What good ideas could I adapt to anotherindustry or activity?• What good ideas from my own industry couldbe successfully adapted to other industries?• What good ideas from other industries could beapplied to my industry?• Is there a market for the product or service thatis created as a result of a transferred idea?solutions for small business exploring business opportunities 43

Capitalize on ChangingComputer TechnologyTechnology is a part of almost everyone’s lifetoday. However, few businesses (or people)have the time or skill to become experts in allapplications and stay abreast of the rapidchanges. Becoming a technology expert bystaying current with hardware/softwarechanges can provide many opportunities todevelop a business. You may be able to offeradvice, services or information in a subjectarea you know well.Some Examples1. An existing computer retailer startedpublishing a newsletter to keep itscustomers aware of new technology onthe market and what it could do for theirbusiness, thereby making their store theexpert in this area.2. A group of university computer graduatespooled their computer hardware andsoftware knowledge to provide consultingservices regarding technology purchases.This expertise allowed people to buy thehardware and software that best suitedtheir needs without feeling obligated tobuy one particular product line.3. A Nanaimo-based training companyexpanded to offer one-on-onepersonalized computer training on newsoftware changes as they occurred.4. A computer operator became an expert onthe Internet and offered specializedcommunication and research services.5. Two B.C. computer science students gottogether to create a web site to trainInternet users how to on-line invest.How To Do It1. Determine which software programs arethe most popular in the marketplace.Become a specialist in all programupgrades and/or modifications. Use thisinformation as a saleable tool toindividuals or companies throughtraining, publications, consulting, etc.2. Find companies or individuals that areinterested in computerizing but have noidea of the hardware and software mostsuitable to their needs. Work themthrough this process.3. What impact is technology having onyour business and the lives of yourcustomers? Identify ways that technologycould provide more opportunities foryour existing business and/or allow you toprovide better service to your customers.4. Look at the needs that have been createdby computerization-for example: peoplebeing laid-off; staff not properly trained;changing office furniture needs; etc.Thinks of ways you can meet some ofthese needs.Key Questions• What technology knowledge or skills do Icurrently have (or could improve upon) thatwould be of benefit to potential customers?• How could I turn this knowledge into abusiness opportunity?• Where do I see the greatest change coming inthe world of technology? What needs orproblems will this create?• How will I be able to ensure that I stay currentwith all new hardware or software changes inadvance of my customers? Will I be able tocover the expense of continuous upgrades?44solutions for small business exploring business opportunities

Help Other Businesses TakeAdvantage of New TechnologiesMany businesses lack the technical expertise totake advantage of emerging technologies.Developing products or services that utilize anew technology to allow companies to achieveefficiencies, improve profit margins, expandmarkets or offer their customers better value,quality or service can present a good businessopportunity.Some Examples1. Specializing in media convergence, aVancouver company assists television andradio broadcasters with delivering on-linecontent.2. Another Vancouver company helps clientsdevelop and integrate e-commerceapplications, enabling them to greatlyexpand their markets.3. A B.C. company develops and marketsproducts that allow the high-speedtransmission of voice, data and videocontent over existing communicationsinfrastructures, most of which were notoriginally intended for digitaltransmission.4. A Vancouver Island company hasdeveloped software that convergestelephone and Internet technology. Usingthat technology, the business offers tollfreetelephone services to real estate agentsthat potential buyers call for informationon a property; the system then generatesan e-mail to a sales agent, providing a“warm” lead to follow up.How To Do It1. Familiarize yourself with emergingtechnology. Read trade magazines,business sections of the newspaper andmagazines and explore the Internet.2. Determine how that technology could beused to help businesses improve theirservices or profit margins.3. Think of new technologies that could beused in current business processes orpractices and develop the technology. Ifyou do not have the expertise to do this,partner with someone who does.4. Talk to businesses in the industry to findout if they would buy the service orproduct.Key Questions• How could emerging technological advances beused to benefit businesses or their customers?• Can I think of any technology that couldbenefit businesses or their customers, but hasn’tbeen developed yet? How can I get thattechnology developed?• What are the logistical considerations ofimplementing the technology for the use I’vethought of? Is it a do-able idea? Is it aprofitable idea?• Is there a market for that technology?solutions for small business exploring business opportunities 45

Create an On-Line BusinessThe exploding growth of the Internet presentsopportunities in a burgeoning new market.The rise in e-commerce, growing consumerconfidence in its security and a continuingincrease in the computer and Internet literacyof consumers are making way for many newbusinesses. Revenue sources other than directsales, such as banner advertising, are enablingentrepreneurs to cater to markets where theend-consumers don’t pay for the product orservice provided, because other businesses arewilling to pay for access to the consumers.Some Examples1. A Canadian company started up anastrological web site, after developingpersonalized astrology software thatcomputes personalized daily readings.Besides banner ads and sponsorships, thecompany earns revenues by licensing itspersonality-compatibility software tomatchmaker sites.2. A Calgary company launched an Internetbasedtee-booking service, offering golfersthe ability to search a range of coursesand tee-times and then make a booking.3. A B.C. entrepreneur started an on-linerecipe and kitchen retailer web site.4. A company offers an Internet searchengine service specifically for Canadianweb sites.5. A B.C. company started an Internet-basedbusiness selling Canadian-made foods andcrafts, with province-specific specialties.How To Do It1. Identify a product or service that youcould offer over the Internet.2. Talk to people with interests and hobbieslike yours, either directly or throughInternet chat services, and think ofproducts or services you could offer thatwould be of interest to them. Considerproducts or services related to yourinterests that you would like to see offeredon-line.3. Search the Internet to find out whatsimilar products or services are currentlyprovided on-line. Determine how youcould improve upon any, or how youcould create a different, more profitablebusiness structure.4. Read business and technology magazinesto see what other new products andservices are being developed. This maytrigger ideas for you.5. Consider how you could earn revenuethrough your venture. Determine ifcustomers would be willing to pay for theproduct or service directly, or find othersources of revenues.Key Questions• What product or service do people need that Icould offer over the Internet?• How would I earn income with the productor service?• What are the logistical and technologicalconsiderations?• Is there a market for the product or service?46solutions for small business exploring business opportunities

Opportunities: MakeYour Current BusinessAll It Can BeIdentify Opportunities ArisingFrom Your Current BusinessYou can uncover new business opportunitiesby analyzing your current business operationsand finding new directions for your activities.Such opportunities could arise from either thestrengths or weaknesses of the business. Toprovide new opportunities, strengths can beexpanded and weaknesses can be corrected.Some Examples1. An organization with a huge mailing listof customers did not use it foradvertising. Recognizing the missedopportunity, it contracted an agentspecializing in direct mail lists tocomputerize the data. The list is now usedto advertise the firm’s own products, andgenerates a rental fee every time the agentrents the list to another organization.2. A glass cookware company branched outinto fibre optics, spinning glass fibres thatnow form the nervous system of moderntelecommunications.3. A B.C. radio station capitalized ontalented staff and state-of-the-artequipment by creating syndicated sportsand public affairs programs that theymarketed to other stations.4. An aircraft manufacturing firm’s fibreglassdivision was under-used whenairplane sales were down. Instead ofclosing it or laying people off duringthose periods, the company researchedadditional products it could produce. Aunique bathtub was designed andmarketed, and became so successful that anew company was formed to produce it.How To Do It1. Take an inventory of your human,physical and other operating assets toidentify those that are currently underused.These assets may be: land,equipment, facilities, patents, products,systems, cash, credit, licences, knowledge,skills, experience, contacts, reputation,market position, methods of distribution,location or trademarks.2. Identify the strengths of your business byconsidering:• Areas in which the operation isinnovative or excels;• Compliments paid by customers orother people, and company strengthsidentified by them; and• Alternative ways to use strengths.3. Identify weaknesses of your operation byconsidering:• Areas that are non-productive;• Areas identified by customers or othersas being weak; and• Areas in which your firm is weak and inwhich competing firms or industryleaders are strong.4. Use external consultants to review yourstrengths and weaknesses.5. Design strategies to improve yourstrengths, reduce weaknesses or turnweakness into strengths.Key Questions• What strengths can be used as a basis forexpansion? How?• What weaknesses can be corrected or turnedinto strengths? How?• What new opportunities can be identifiedafter consideration of the current strengthsand weaknesses?solutions for small business exploring business opportunities 47

Identify the Full Scopeof Your BusinessSometimes businesses fail to identify the fullpotential scope of their operations whenconsidered in a context of the genericcategory of their business. For example,book publishers are in the informationbusiness, soap companies are in the cleaningbusiness and trucking firms are in thetransportation business.Defining the business in a clear and completemanner can lead to the identification ofadditional business opportunities. For example,soap companies can expand their product linesto include other items that clean.Some Examples1. The publisher of a community newspaperrealized he was in the informationbusiness, and began to publish anewsletter as well.2. A firm of chartered accountants realizedthey were in the business of financialcontrol. They expanded their regularaccounting activities by hiring a financialcontroller who serves several smallcompanies on a fee-for-service basis. Their“rent-a-controller” is a success.3. Managers of a neighbourhood food storerecognized they were in the conveniencebusiness. They began to provide other“convenience” products, services andfeatures, such as delivery service, 24-houropening, easy parking, hot snacks andvideo rentals.How To Do It1. Ask yourself what general type of businessyou are operating.2. Look at the services and products youprovide in order to identify which generalcategories they fit in.3. Examine the identified general categories.Then think of other types of products orservices in those categories that you arenot providing, and consider whether youcould expand your operation to offerthese additional items.4. Talk to potential customers to find outwhether there is a demand for theadditional products or services.Key Questions• Into what general category or categories does mycurrent operation fit?• What other products or services could fall intothe same category? Could I expand myoperation to offer these additional items?• What other products or services would fit withmy business that existing customers would buy,or that would attract new customers?• Is there a market for the additional products orservices?48solutions for small business exploring business opportunities

Take Advantage of CircumstancesConsumer goods and services can be providedas a response to situations and circumstancesarising from events of the day. These mightinclude social events, economic changes,business or industry developments, new laws,environmental events or other occurrences.Some Examples1. An unusually cold winter on the Prairiesbecame profitable for a B.C. hotel thatstepped up its promotional activities toaffected areas and put in a toll-freetelephone line for reservations. As a result,its occupancy rate doubled.2. After the eruption of Mt. St. Helens,entrepreneurs developed souvenirs andnovelties such as photographs, post cards,dust samples, maps, and other items fortourists and distributors.3. Deregulation of the telephone industryopened opportunities for privateenterprise to compete with largeestablished telephone companies to selland install phone systems for motels,hotels, office buildings and othercommercial facilities.4. Facing growing consumer concerns aboutenvironmental impacts, a B.C. loggingcompany changed its forestry practices tocater to environmentally minded markets.5. In a city where many citizens wereconcerned about a health epidemic, anurse became a distributor for an easy-tousemedical kit that allowed people toself-test themselves for the disease.How To Do It1. Develop the attitude that every experienceand situation provides an opportunity forsomeone.2. To recognize situations and circumstancesthat can provide a business opportunity:• Observe mass media news reported bynewspapers, radio and television;• Analyze current news stories inmagazines;• Keep informed about local events; and• Look for unexpected or sudden changesin society, the economy, legislation,politics, the environment or businessesthat leave many people in an unfamiliarsituation.3. Create a product or service that may:• Help people in a crisis (group therapy,useful supplies);• Help people to celebrate or rememberthe event (souvenirs, museums);• Provide an experience related to theevent (trips, movies); and• Help people take their minds off theevent by diverting their attention(entertainment, activities).Key Questions• What current situation could provide a businessopportunity?• What products or services could be provided toaddress a market created by a current situation?Could I provide any of them?• What potential customers would purchase theproduct or service I want to provide?solutions for small business exploring business opportunities 49

Expand Market AreasWhen a locally made product or business issuccessful in the local area, an opportunityoften exists to expand marketing efforts tonew geographic areas. Sometimes this caninvolve opening another outlet in anotherlocation.Some Examples1. A B.C. co-operative that suppliedequipment to mountain climbers andhikers was so successful it expanded to 3stores (one in Ontario) and, in addition,moved into mail order sales.2. A used camera store in B.C. put itsinventory on-line, and now sells itsmerchandise across Canada and the U.S.,as well as in Asia and Europe.3. A nut and fruit bar made in Vernon andmarketed only in the Okanagan regionhad its marketing expanded to theVancouver area.4. A successful B.C. restaurant with aunique concept expanded by setting upsimilar restaurants in other cities acrossNorth America.How To Do It1. Identify products or services currentlyoffered by your company within yourregion and consider whether marketingefforts could be expanded to new areas.2. To find successful local products orservices that are produced by someoneelse and not distributed to other areas:• Talk to purchasing agents;• Place classified advertisements innewspapers;• Contact your local Chamber ofCommerce;• Analyze local advertising;• Talk to local business people;• Look for locally made products instores;• Look for stories regarding localproducts and services in businessmagazines, newsletters and newspapers;and• Talk to tourists to your region, as wellas local travel industry personnel, tofind specific products and services thatattract businesses, and consider whichof these could be imitated, franchisedor marketed in other areas.3. To find successful one-of-a-kindbusinesses that have been developed bylocal people:• Analyze the Yellow Pages in your phonedirectory;• Identify local fashions and lifestyleactivities;• Observe retail stores and services inyour area;• Listen for positive comments from localconsumers and business people aboutlocal businesses; and• Ask visitors to your area for names ofunique local businesses they havenoticed that they would like to have intheir own community.4. Talk to potential customers to discoverwhether there is a market for the productsor services in the new area.Key Questions• What local products or services could beexpanded to new markets in other regions?• What successful local products have not beendistributed in other areas?• What local businesses could be successful inanother area?• Is there a demand for the product or service inthe new territory I am considering?50solutions for small business exploring business opportunities

Expand your Businessover the InternetThe burgeoning growth of the Internetpresents all sort of new possibilities: newmarkets anywhere in the world; new ways ofproviding your products or services; andentirely new products and services.Some Examples1. A human resources consulting firmexpanded onto the Internet to provide jobposting services, and has experienced hugegrowth in its business.2. A B.C. publisher of an annual directoryof prospective donors for non-profitfundraisers set up a web site database nowaccessed by many Ivy League colleges andnational non-profit organizationsthroughout the U.S. and Canada.3. A Canadian newspaper began offeringsubscriptions to its publication on-line,reducing costs and improving its customerservice by providing access to thenewspaper much earlier each day.4. A B.C. woman who published an “oldfashioned”paper newsletter on travelspecifically for women decided to turn herpublication into an “e-zine.” Herreadership exploded and her revenuesincreased through classified ads andsponsors for the site.How To Do It1. Ask yourself what services or productsyou currently provide that could beoffered on-line.2. Look at similar businesses to see how theyare making their product or serviceavailable over the Internet. Think abouthow you could do it better or moreprofitably.3. Talk to your customers to see if theywould be interested in seeing yourproducts or services on the Internet. Askthem if there are any new or relatedproducts or services they would like to seeyou offering on-line.4. Your customers may have ideas on howyou could improve your customer serviceby expanding your business to theInternet. For example, an on-linenewsletter could provide information andadvice in your area of expertise related toyour business.5. Think about how you could attract newcustomers by providing your products orservices over the Internet.Key Questions• What products or services do you offer now thatcould be offered over the Internet?• Are there new related products or services youcould offer on-line to improve your customerservice or attract new customers?• Would customers buy these products or serviceson-line?• What new markets could you access byexpanding your business onto the Internet?solutions for small business exploring business opportunities 51

Franchise Your BusinessFranchising means selling the rights andsupport systems for your business or concept,to allow someone else to operate a businesspatterned after yours in another location. Atypical contract would provide you withongoing income from royalties and/or sales ofsupplies. Sometimes it provides for sharedadvertising costs.Some Examples1. A successful restaurant sold franchises sothat similar restaurants could bedeveloped in other cities to form a chain.2. A company franchised its concept forInternet business software solutions whichprovide small and medium-sizedcompanies with e-commerce solutions tomake powerful Internet tools available ata fraction of the cost and installationtime.3. A B.C. accountant developed a simpleand inexpensive system for doingcompany accounts. She is franchising thesystem for others to use and expandinginto Ontario.4. A firm that rented used cars becamesuccessful and sold franchises to developsimilar businesses in other B.C. locations.3. When your business has becomesuccessful, set up one, then two,duplicates (branches) of your originalbusiness. This will ensure each duplicatecan generate sufficient income to supportboth future franchisees and you as thefuture franchiser. An operating period ofone to two years is usually sufficient toestablish a track record.4. Sell your branches as franchises.5. Decide where you wish to grant otherfranchises.6. Advertise through newspapers andmagazines, trade associations, trade shows,franchise shows and Chambers ofCommerce.7. Talk to a franchise specialist for assistanceand advice in the setup stages.Key Questions• How can I develop a business or concept that Ican franchise?• What type of franchise operation would bestsuit my talents and abilities?• Is there a market for the products or servicesoffered by the type of business I would like tofranchise?How To Do It1. Choose a business or develop a conceptthat is easily duplicated.2. Identify and talk to potential customers todetermine their need for your products orservices.52solutions for small business exploring business opportunities

Meet the Same Needsin a Different WayMany times opportunities exist for businessowners to re-position their products orservices to reflect more variety or differentpricing. By starting a second business offeringsimilar products or services, you are stillmeeting the same need but can appeal to adifferent group of consumers withoutconfusing existing customers.Some Examples1. A bridal shop specializing in high-enddesigner wedding gowns recognized aneed to sell more affordable fashions anddiversify into graduation dresses. Herclients shop at her boutique because sheoffers very exclusive gowns. Rather thanchanging her image by expanding her lineof gowns, she opened another boutiquethat caters to the second market.2. A Canadian music store chain created anon-line ordering service, offering itsproducts at a discounted rate and makingthem available to customers in marketareas previously not serviced by thecompany.3. An entrepreneur noticed that while manypeople frequent a local jewellery shop thatcarries many expensive collectibles, fewpeople make purchases. By opening astore that offers a different line of similarproducts, he is able to meet the samecustomer needs at lower prices.4. A gift company started a new line ofhand-sewn home products using lowerendfabrics after many customersexpressed a desire for less expensive giftitems where the long-term quality was notas important.How To Do It1. Look at your customers:• Are there products they have beenasking for that you have been unable toprovide?• Is there something (price, color, etc.)about your current products or servicesthat prohibits them from buying?2. Determine whether selling differentproducts would damage the existingimage of your business. Would there bean opportunity for you to start another‘like’ company?3. Talk to your local Chamber of Commerceto find out if any businesses are closing ormoving out of the area. Exploreopportunities to meet some of the needscreated by these moves.4. Find creative ways to repackage successfulexisting products or services.Key Questions• What gaps do I currently see in my area?• Are there products or services I can duplicateand offer in a different way?• If I diversify my existing business, will it hurtor enhance my image?solutions for small business exploring business opportunities 53

Take Advantage of Global MarketsAdditional opportunities for an existingproduct or service often exist in other marketsaround the world. Think about how you cantake advantage of consumer demand or createconsumer demand outside the borders of yourcurrent market.Some Examples1. A local retail outlet selling HarleyDavidson accessories was seeing a declinein sales due to the limited number oflocal customers. Recognizing that HarleyDavidson is international, the retailerexpanded the business by promoting theproducts on the Internet and offeringmail order sales.2. A Vancouver company that develops,manufactures and markets temperaturecontrollingproducts and packagingsystems branched into the U.S. market. Itnow supplies its products for thetransport of pharmaceuticals, seafood,airline food and beverages, and forperishable Internet retail products andcommercial shopping networks,throughout North America.3. A secluded vacation rental company inTofino, B.C. was able to double itssummer rentals (and reduce its highadvertising costs) after developing a website that not only promoted its properties,but acted as a tour reference for peoplecoming to the area.4. A successful manufacturer of fishing luresnoticed a seasonal decline in businessduring the winter months. By sourcingout additional areas that enjoy a fishingseason all year round, the company wasable to expand its market into Australia.How To Do It1. Look at international markets. Examineproducts or services produced in BritishColumbia that could be sold abroad.2. Talk to Industry Canada or the local tradecommissioners to see if there arecompanies looking for Canadian partners.3. Investigate free trade agreements to seewhich markets you could most easilymove into.4. Use the Internet to expand yourmarketing outreach, provide exposure todifferent markets and create alliances indifferent parts of the world.Key Questions• Are there needs in similar markets in othercountries that my product or service could fill?• Would it be profitable to sell my productinternationally, taking into considerationcurrency exchange rates and shipping costs?• Would my customer base use the Internet to buymy product or services?54solutions for small business exploring business opportunities

Appendix A:Testing Business IdeasBasic ConsiderationsA business idea is a business opportunity onlyif it has a chance of succeeding. The purposeof testing business ideas is to identify thosethat are actual opportunities. You may thinkof many ideas, but only one or two of thosemay prove to have sufficient merit to beconsidered an opportunity.To determine whether a business idea is anopportunity, four areas must be explored.Personal considerationsThe planned activities and outcomes mustsatisfy your personal goals and interests.Marketing considerationsThe products and services must have thepotential for success in the marketplace.Production considerationsYou must be able to produce the requiredvolume and quality of products and services.Financial considerationsYour planned business operation must be ableto meet the required financial goals.Collecting InformationTo assure yourself that a business idea canmeet the necessary goals in these four areas,many questions need to be answered. You willhave to invest time and effort to collectinformation.Good sources of information include:• Canada/British Columbia BusinessService Centre;• Local Chambers of Commerce;• Government Agents• Libraries;• Internet web sites related to business;• Existing businesses;• Yellow Pages of telephone directories;• Purchasing agents;• Company annual reports;• Market research reports;• Trade association literature;• Journals, periodicals and newspapers;• Informal contacts in the industry;• Specialized books related to the trade;• Statistics compiled by federal, provincialand municipal governments;• Provincial and federal governmentpublications;• Community Futures DevelopmentCorporations; and• Women’s Enterprise Society of B.C.Additional information may be obtained by:• Conducting surveys;• Observing business activities;• Observing business facilities;• Becoming a customer of potentialcompetitors;• Conducting telephone interviews;• Conducting personal interviews;• Carrying out test marketing trials; and• Producing sample products.solutions for small business exploring business opportunities 55

Asking the QuestionsThe questions that follow will help youdetermine whether a particular idea meritsfurther consideration. They are designed tohighlight any serious problems or deficienciesrelated to your idea.Work systematically through each section,gathering enough information to make aninformed decision. Organize your informationin such a way that each question can beanswered. Identify any missing data andcollect it.When you have enough information, you willbe able to decide if your idea:• Represents a potential businessopportunity and warrants the preparationof a full business plan;• Requires some modification; and/or• Is obviously flawed and should beeliminated from further consideration.Testing new venture ideas is a skill developedwith practice. At first you may find thequestions difficult to answer, but after youhave used the questions a number of times,your skills will increase.QuestionsIntroductionWrite a simple description of your businessidea. What do you want to do? Why? Wheredo you want to do it? What is the product orservice you want to provide? Who will buy it?How will buyers use it?Personal Considerations1. Is this idea something I really want towork at?2. Do I have enough money?3. Can I handle the risk of failure? Loss ofpersonal assets? The risk of damage to mycommunity position and ego?4. Would I sacrifice important aspects of mylifestyle to turn this idea into a successfulbusiness?5. Is the work something I can get excitedabout?6. Is the idea legal and ethical?7. Will the idea reflect favourably upon myreputation?8. Do I want to work with the people whomay be associated with this idea?9. Is this idea more important to me thanany others that I am considering?10. Do I have enough time to work on thisidea?11. Do I want to live the lifestyle required bythis idea?12. Does the required work match the typesof activities I like?13. Do I have the health and energy tooperate this business?14. Does my personality suit this type ofbusiness?15. What knowledge, skills or experience do Ihave that would suit the work required tocarry out this idea?16. Do I have adequate knowledge of thisindustry, including information oncompetitors, potential clients, marketsand current technology?17. Do I have adequate technical, managerial,marketing and financial skills to operatethis business? If not, can I learn them oremploy someone with those skills?56solutions for small business exploring business opportunities

Market Considerations1. What is my target market?• Who are my potential customers?• Where are they?• What are their demographiccharacteristics (age, income, maritalstatus, number of children, type ofhousing, etc.)?2. Have I asked potential customers whetherthey would buy my product or service?3. Have I surveyed my potential customersfor their opinions of my planned prices,volumes, packaging, promotion strategiesand distribution methods?4. What patterns of buying behaviour areimportant for this product or service?• When do people buy?• How do they buy similar products orservices?• What is the typical size of orders?• Who makes the decision to buy?• How much effort is needed to persuadethe buyer?5. How many orders or contracts can I havein hand before I start the business?• Where will I find my first customerorders?6. What does a detailed analysis of thecompetition illustrate?• If a client does not buy my product orservice, what alternative would bepurchased?• Who are the main suppliers of thosealternate products?• What trends regarding those alternativeproducts are evident in themarketplace?• How does each competitor fit into themarket, in terms of market share, typesof products or services offered,marketing strategies and profitability?7. Sales probably will be at the expense ofcompetitors. How will they react to myinroads?8. What competitive advantage does my ideahave over those of my closest competitor?9. How can I protect myself from thecompetition?• Can I have a lower price? A higherprice? Lower quality? Higher quality?10. Will others quickly copy my idea?11. How much of a head start do I have overmy competitors for this idea?12. Who will sell my product or service?• For how much?• What sales tools will they need?• What training will they need?13. How will my product or service bepromoted?• What forms of advertising will I use?• Can I handle promotion andadvertising myself or will I hiresomeone else to do it?• How much money will I spend onpromotion and advertising?• How much money is the competitionspending and where?14. What does a detailed analysis ofdistribution illustrate?Note: Distribution of a product is one of themajor barriers to consider. Begin a dialoguewith distributors. Ask retailers for theirrecommendations on which distributors toapproach.• How will I distribute my products?• How much inventory will I need?• Is one product line enough?• Is there enough repeat businessinvolved?• What are the productionconsiderations?solutions for small business exploring business opportunities 57

Production Considerations1. Can I produce or deliver the service?2. How have I assured myself that theproduct or service will really work?3. Can I find facilities to use?4. How much development work is neededbefore units can be produced or servicedelivered?5. What legalities need to be checked(patents, zoning laws, etc.)?6. How may units can I produce or howmany customers can I serve in the firstyear?7. Can I find materials at a reasonable price?8. Can I find good production staff?9. What equipment will be needed?• Where can the equipment be bought orrented?• What servicing and maintenance willthe equipment require?• What are the delivery times forequipment and materials?10. Can I assemble a management team todevelop the opportunity?• What management and technical skillsare needed?• What skills are already available?• What skills are still needed?• Does this group have the personalcontacts that will be needed?Financial ConsiderationsNote: Financial considerations are bestevaluated using a standard cash flowprojection format. A booklet called BusinessPlanning and Financial Forecasting, preparedby the Government of British Columbia andWestern Economic Diversification, is availableat your local Chamber of Commerce.1. What revenue can I achieve from the saleof my product or service? (To determinethis, multiply the actual prices you willreceive for products or services by theestimated number of sales, based on theinterest expressed by potential customers.)2. Are my prices in line with thecompetition?• If not, why not?• How will my customers react to theprice, based on their perceptions of thequality of the product? (Ask yourpotential retailers and/or distributors.)3. Are my profit margins in line with theindustry standards?• If not, why not?• How will my customers react to theirown margins? (A retailer marks yourproduct up. Is the margin sufficient togenerate the required gross profit, giventhe volume projections? Ask them.)• What margin does the distributorrequire?4. What will be the cost of goods for theproducts I produce and/or distribute?5. How will the gross profit compare to otherfirms in the industry?58solutions for small business exploring business opportunities

6. What will be the start-up costs for mybusiness? (Consider fixtures, equipmentinventory, legal fees, licences, advertising,promotion, staff recruitment, etc.)7. What will be the operating costs for mybusiness? (Consider salaries, rent,supplies, interest, office expenses, etc.)8. How will the net profit level compare tothose of other firms in the industry?• What are the causes of my higher orlower profit levels?9. Can I obtain the financing required forthis idea?• Where can I get the money? (Usuallyfrom personal savings first, then fromfamily and friends, then from banks.)• What terms can be negotiated with thebank?• What collateral can I pledge to secure aloan if necessary?• How will the bank loan be repaid if thebusiness fails?• What credit can be obtained formaterials and supplies?10. Can I survive financially during the earlyphases of the business?• How much money will I need to drawout for personal expenses? (Include thisamount in your cash flow projections.)11. Is the level of financial risk low, average orhigh?• How much money will be lost if thebusiness fails?12. How can the idea be tested with little orno investment up front?If, after answering these questions, you areconfident that your idea has a good chance ofsucceeding, proceed with the development ofa full business plan or continue your marketresearch. Start with the actual selling of theproduct or service on a small scale, if possible.This is excellent market research.solutions for small business exploring business opportunities 59

Appendix B:Sources of Helpand InformationFor a complete listing of contacts for businessinformation and assistance, consult theGovernment of British Columbia and WesternEconomic Diversification Canada publicationBritish Columbia Resource Guide: guidelinesand requirements for business.For any further information or direction,contact:Canada/British ColumbiaBusiness Service Centre601 West Cordova Street,Vancouver, B.C. V6B 1G1Phone: (604) 775-5525Toll-Free: (800) 667-2272Fax: (604) 775-5520Info Fax: (604) 775-5515Web site: http://www.smallbusiness.bc.ca/60solutions for small business exploring business opportunities

Appendix C:Business IdeasAgriculture, Agrifoods andSecondary Food Processing• Agriflora - native plants for ornamentalmarket• Animals farmed for secondary processing• Appetizers• Berry farming• Beverages• Birds for secondary processing• Breads• Butter• Cakes and cookies• Cheese• Chocolate, specialty products• Coffee beans, import and then processed• Condiments made from localfruit/vegetables• Confectioneries• Dairy products• Desserts• Eggs• Ethnic foods• Extracts and flavourings• Fast-food dishes• Feed• Fruits and berries• Fur farming• Hens• Meat• Mushrooms• Pasta and pasta products• Paté variations• Pet food• Pies• Roots• Salad dressings and dips• Sauces• Sausages, specialty• Seasonings• Snack foods• Sod farming• Syrups• Teas• Vegetables• Vinegar varietiessolutions for small business exploring business opportunities 61

Aquaculture and Ocean Industries• Aquaculture sites• Compost of fish offal• Dock facilities• Feed• Fish leather as versatile and fashionablematerial• Fish offal for secondary processing• Fish, small saltwater for aquariums• Parasite sensors and detectors• Patés and mousses• Sea urchins for Japanese market• Seafood• Seafood entrées• Sea salt• Seaweed for condiments or otherproduct inputs• Shellfish and shells• Tools and equipment related to thisindustry• Vaccines for fish farmsManufacturing• Chemical liquids/Cleansers• Clothing, specialty and unique items• Coffins/Caskets• Dimension stone; e.g., slate, marble,granite• Eiderdown for duvets, pillows, clothing• Fibreglass products• Fire logs• Fur products• Leather products• Moss for decorations and floralarrangements• Ornamental concrete for gardeningand fencing• Packing material• Paper products• Peat• Pet food• Sawdust for fire logs andconstruction uses• Styrofoam• Tanning• Tiles• Toys• Uniforms• Utensils• Wire/Chain products• Wood products, bulk• Wood products, decorative• Wood products, laminated• Wooden pallets62solutions for small business exploring business opportunities

Technology andEnvironmental Industries• Biotechnology• Communications• Custom software• Database management• Data processing• Electronic assembly• Fishing vessel monitoring sensors• Geographical Information Systems (GISs)• Geomatics• Internet research• Offshore oil industry• Oil recovery• Oil response for spills• Oil spill clean-up• Radios• Remote sensing for pollution detectionand vessel activity• Research monitoring systems forwilderness areas• Recycling• Snow handling• Software design• Sub-sea technology• Web page designAdventure Tourism• Big-game hunting• Bird-watching• Deep-sea fishing• Hospitality services• Man-made attractions• Marine species• Marketing and brokering services totourism facilities• Nature education and interpretation• Recreational facilities• Sailing expeditions• Skills training• “Soft adventures” not physicallystrenuous tours• Tour boats• Tourist product development• Underwater diving• Winter tourssolutions for small business exploring business opportunities 63

Crafts and Cultural Industries• Artistry• Book and other publishing• Clothing• Craft and art support store• Driftwood as production material forcrafts• Jewellery – custom, hand crafted• Movie/video production facilities• Music equipment – sale, rental, repair• Native plants for ornamental display• Photography• Pottery• Print shop, custom and fine art• Rocks for crafts, decorating, concrete• Rugs/mats• Shells of small crustaceans for crafts• Sound recording services• Theatre• Wild flowers for a variety of productsHealth Care Industries• Basic science research• Biotechnology• Clinical trials for new pharmaceuticals• Diagnostic services for laboratories• Export services for industry developments• Gloves• Health care delivery research andconsulting• Home-care services• Hospital/institutional supplies• Marketing/distribution services for localproducts• Medical kits• Packaging and distribution• Sterilization services• Technical services, maintenance andrepair• Uniforms64solutions for small business exploring business opportunities

Home-Based Business Possibilities• Animal boarding• Answering service• Art gallery and sales• Audio and visual production• Baby items• Baking• Bed and breakfast• Beekeeping• Child care• Car services, specialized• Catering• Children and specialty entertainment• Cleaning• Computer services• Consultant• Convention and conference planning• Cooking services• Database management• Design and layout• Desktop publishing• Distributing• Door-to-door selling• Energy services• Event and party planning• Exporting• Farming• Fashions• Food products• Footwear• Fund-raising• Furniture polish• Furniture repair• Gardening• Geographical Information Systems• Gift basket service• Glass blowing• Guided tours• Hobby, craft and art supplies• Home renovations• Image consulting• Importing• Information service• Interior design• Internet research• Jeweller• Lawn and garden care• Leisure activities• Mail order service• Maternity fashions• Media productions• Novelty items• Office planning• Packaging• Personal services• Personal shopping• Photo postcards, picture postcards• Photography• Polishes and cleaning products• Placement and assistance• Pool cleaning• Pottery• Print shop• Professions without special facilities• Publishing• Rebuilding• Recreation• Research• Resumes• Seminars• Sewing• Shoe repair• Sports equipment• Telephone soliciting• Training• Tutoring• Videotaping• Web site design• Word processing• Writing and editingsolutions for small business exploring business opportunities 65

solutions for smallbusinessThis publication is part of the Solutions for Small Business series sponsored by WesternEconomic Diversification and the B.C. Ministry of Competition, Science and Enterprise.Both agencies are committed to supporting the needs of small businesses and furtherinformation about small business programs and services is available on each agency'sweb site (www.wd.gc.ca and www.gov.bc.ca/cse/).The Solutions series is also available on both web sites as well as on the web site ofCanada-B.C. Business Services (www.smallbusinessbc.ca). The other titles in the series are:Starting a HomebasedBusinessA Manual for SuccessBusiness Planningand FinancialForecastingBC BusinessResource GuideGuidelines andRequirements forBusiness