What is External Opportunities? For entrepreneurs, this is a hot word that evokes many negative reactions. Some may even think of it as a buzzword for a sale. However, you will be surprised to know that there are real opportunities that exist outside the realm of the regular business realm and that can change your business or even help make your business a success story.
The term itself is not a new one. “Exchange” is another common use of the word and essentially means the same thing. When you exchange places with another business, it can mean increased profits and market share. More people can be reached by your product or services and you can reach more customers if your business is better positioned in the market.
External Opportunities are opportunities that come to you when you are in a unique situation and your business needs are also unique. The key to remember is that most small businesses do not excel in every niche on which they operate. There are always going to be areas in which your competitors are stronger and that require a more tailored approach. Exchanging market positions can provide you with the edge needed to launch your business into new territory and create new sources of revenue.
External Opportunities are not limited to new niches or sub-niches. For the most part, they occur within existing markets. For example, when you look at the online retail industry, you realize that your competition is stiff but there are plenty of opportunities. On the other hand, if you were looking at the high end clothing niche, there are fewer options but some of the biggest players have already moved on. This gives you the ability to take advantage of the power of brand name recognition and a solid reputation online to create a loyal customer base.
This kind of market access is exactly what the Internet has been built for and it is a huge step forward in improving your business’ potential. While it may not give you the ability to print money, it does provide an unparalleled opportunity to connect with potential new customers and build a core customer base. Without this crucial element, a small business owner would have no chance at all. Every business should have at least one customer base so that they can gain a foothold in the marketplace and gain a solid footing.
External Opportunities are not just about gaining new customers either. They are opportunities to expand into new markets, which is critical for every business in today’s world. A large percentage of today’s economy still comes from the expanding global markets, meaning that if you want to remain competitive you must consider how you can penetrate markets that you may have previously overlooked. There is plenty to gain from exploring markets outside of your core strengths, as well as great potential revenue.
What is External Opportunity? How can you identify opportunities in markets that are outside of your traditional core strength? These are questions you must ask yourself. The sooner you can answer them, the better off you will be, as your overall level of success will rise dramatically. If you don’t understand the importance of entering a new market, it could spell disaster for your business, as it means that you are already behind the competition in your field and could be working against your own success.
So, how do you know if you are working in the right market? One way to determine that is to consider the overall health of your company. Is it growing at a healthy pace, or has it been hit by market conditions? This will help you decide if you are entering a market that is right for you, as growth is an important key indicator of whether or not a market is a good fit for you and your business model. It can also help you determine whether or not you should be entering the new market, as well.