14 Proven Ways to Identify Top Lucrative Business Ideas

Business and entrepreneurship have played significant role in the lives of individuals, and have contributed towards the growth and development in economies over the world. The significant role of both small and big businesses have therefore, spurred individuals and government to design programs and approaches that are geared towards creating profitable business platforms. But how do big and small business players come up
with their lucrative ideas to sweep the market?  In this article, I will show you 14 proven ways to identify top lucrative business ideas wherever you are. After reading this post, you will be able to use your five senses (smell, see, hear, touch, taste and/or feel) to make an informed business decision through observation.  Let’s see the proven ways:

14 Proven Ways to Identify Top Lucrative Business Ideas 

1. Identify the Gaps in the market you can fill

The idea can be a need not being satisfied by the market at present. If there is such a need, then a market or business opportunity exists. Unless a business fills a gap it cannot succeed. As a developing country, there are so many gaps in our society waiting to be filled. Once you have identified a market gap, formulate a plan of action to tap the opportunity with a good idea or product.

2. A business related to the work you do

The idea can be an acquired experience or one related to the work you do or have done. Such idea can give you opportunity to launch into an existing market. This is an easy way of getting into a business since you already know your customers or client and where you can get them to patronize your product or service.  

Read: Top20+ Service-Based Lucrative Business Ideas you can start in Nigeria

3. Transform your curiosity or hobby into a business idea

Your talent or hobby (what you enjoy doing at leisure) can be a good source of business idea. Think of what you enjoy doing and how it can satisfy needs. Interest in sport, academic, entertainments etc. can provide a good business idea.

4. A poor delivery of service or products

A business idea could be your ability to improve the quality of service or product in the market. If you can find a solution to a problem, people will be willing to pay for it. You have to find out what people dislike and complain about, e.g. problem of business people, housewives, working wives, professionals, etc. related to existing good and services.

 

5. An overpriced products or service:

By researching, you can determine whether a particular product or service is being overpriced or not. If you can provide such a product or service (without compromising standard) to the market at a reduced price and better quality and still make profit, then you have a good business idea

6. A monopoly

If you can discover where a monopoly exist and is not protected by law, then you have a business opportunity and can establish competitive product or services.

7. Failure of a product or service

A product or service can fail due to many reasons. If you can find out why it failed despite the available market for it and provide the solution, then you are on your way to setting up a business

8. An adaptation or imitation

You can borrow ideas from existing products or services that have a market and create a competitive products or service

Read: Howto Start a Magazine Publishing Business in Nigeria and make Millions of Naira

9. Invention of product or service

A new invention can create a good business idea by using a method no one has ever applied before.

10. Joining a franchised business

A franchised business is a partnership between a franchisor who licences trademarks and a tested system of doing business, and a franchisee who pays a fee to the franchisor foor adopting the business model.

In this form of business, training and, often, promotional materials are provided by the franchisor to aid the awareness. As it is an already operating and working system, it’s harder to fail as contrasting to when establishing a completely new business model.

The biggest drawback of franchise business is lack of control. A franchisee have to track the business model and has little space for creativity or improvement. A franchise business can also be very expensive to start.

12. Buying a business

Another way of getting into business is by buying over an existing one. You can decide to buy and existing business with the prospect of doing better if properly managed and funded.

There are a number of businesses that are not striving well because of poor management or lack of fund; such business can be sold by the owners at a much reduced price.

The advantages of purchasing an already existing business is that there is market and brand already in place for you to cash in on.

13. By starting up direct selling

One way to start your own business within an existing structure is by direct selling. Opportunity for direct selling exist where a manufacturer misses out the retailer but selling directly to the customer. Theses sales are usually worked part-time. This process of selling directly for company has many advantages over establishing a fresh business.

The market research, developing and testing new products, planning and pricing, and working out sales technique are all done by the company. All you need to do is absorb their sales training and sometimes purchase a starter pack of goods to sell.

The sales procedure has been written by experts, so if you follow the training you should, in theory, be able to make sales

14. By Network Marketing      

Some direct-selling companies operate a multi-level system of sales, where a salesperson can recruit other salespeople and then receive bonuses based on the performance of his or her recruits.

This way of selling is called network marketing or multi-level marketing, and its accounts foor about a quarter of total direct sales.

It works like this: you sell the products to your friend and contacts. One or two of them might think he or she can sell it to his or her friends and so agree to become a distributor. By recruiting them, you can earn bonuses that are dependent on their sales. If those new distributors recruit more people you contract a share of their sales bonuses from the lead.

Whatever your idea is, you have to be sure that it fits your need as an individual. As well as a method no one has ever implement before.  

Read: BusinessDevelopment Strategies for Startups 

Do you have other ideas, comments or feedback to share with others? We welcome comments from you. So, kindly use the comments section below.