What is a business opportunity? In most cases, it is information asymmetry.
You know the production cost, retail price, huge spread and brokerage profit of a good. You know some suppliers and manufacturers are holding a lot of inventory and can’t sell them. You know some popular platforms are difficult to make money, and they don’t know what to sell. You know some emerging markets and platforms have low-cost traffic. You know that a certain manufacturer is rushing to promote products, and he has a large amount of promotion budget, but the promotion cost is very high. This is an information asymmetry.
Information asymmetry is not just a simple price difference. For example, the cost of artificial labor in an industry is extremely high, and the time-consuming and cost-effective effect is not good. You know that there are new breakthroughs and algorithms in the academic field. It can be a good substitute for such labor, which is also an information asymmetry.
Why is Silicon Valley so powerful? There are some “academic brokers” in colleges and universities, which really open up the information asymmetry between academia and industry. The power of this explosion is still remarkable. “Academic brokers” is an easy-to-understand statement, but it is definitely not derogatory. If you don’t have academic ability, you can’t do it. If you don’t understand industrial business, you can’t do it as well. It is hard to do both.
Many people think that they have a little capital and see others making money, but they don’t know what to do. There are many such people. Another type of person, who has a high degree of information acumen, and can see many business opportunities. They see the price difference in this field today and the growth dividend in that field tomorrow. However, if they do it themselves, they will never succeed. It is clear that the direction is right, and it is not too late, but the business can’t be done. Seeing others take away the bonus, they continue to do nothing.
Seeing business opportunities and grasping business opportunities, there is a distance in the middle. It’s like you see goods on the side of the wall and guests on the other side of the wall. You think this is very simple, can you take your customers to the goods? Yes, but first, you need to break this wall. Many people didn’t see this wall. Many people saw it as a piece of paper and felt it would be broken.
For young people who lack entrepreneurial experience and only have good entrepreneurial ideals, many times they may see business opportunities but never see the wall at all. What is the wall, there are different possibilities in different fields.
It may be engineering ability, the ability to implement some good ideas, technology or design industries. Luo Yonghao, CEO of Smartisan, feels that there is enough opportunity for the excellent design of the mobile phone market, but the engineering ability of this wall, he did not break. Royole Technology, I have seen the demo, the technical indicators are really good, but now you see Huawei’s choice of flexible screen is BOE. I feel that Royole still seems to have no solution to the bottleneck in engineering production.
It may be the cost of getting a customer. Is there a demand? Yes! Is there any user payment ability? Yes! But who tells you that users on the Internet are free. The cost of getting a customer is like a mountain, which has overwhelmed the enthusiasm of many entrepreneurs. Now K12 education is a hot spot for capital. Many entrepreneurs are eager to try. I have a question, such as the well-known VIPKID, what is the cost of a paid user?
It may be the cost of credit. What is the cost of credit? Everyone has heard the slogan and there is no middleman to make a difference. The meaning and value of the middlemen are not understood by many entrepreneurs. The trust relationship between buyers and sellers depends on the middlemen. Now some business models say breaking brand profits, such as some e-commerce, then the platform bears the cost of credit. For example, the cancellation of middlemen is also dependent on the platform to bear credit. But what is the construction of this credit, it depends on a lot of advertising and endorsement!
It may be efficiency of execution. Execution efficiency is not only time efficiency, but also ability. For example, if you see a good field, you do it first, but your mobility is slower than others. They harvested the market and established the brand. Or you have an action, but your platform has flaws in some key technologies that cannot support larger user access or more flexible business development. This determines the game’s win or loss.
It may be a pattern and discouragement. It may be a pattern and discouragement. Many grassroots entrepreneurs have limitations. They have seen opportunities and seized opportunities. However, they cannot share their interests with others and cannot quickly expand the scale and influence of the company. They gradually lost market position in ease and then were ruthlessly eliminated.
It may be the ability to operate the details of the product. This is why so many grassroots webmasters did the same thing, and no one beat Li Xingping. It looks like the product is similar, the mode is similar, but he operates, pays more attention to details, improves the user’s retention and word-of-mouth communication effect, finally he pulls the competitor away.
Seeing the business opportunity is to see the two sides of the wall, but it may not be so easy to penetrate the wall. And if you don’t see the wall, you can only hit it all at once. And if you don’t see the wall, you can only hit it all at once. Some people see others doing this business to make money, and they want to follow suit, but the result is a mess. They can’t figure out why, and this kind of person is quite common.