One of the biggest challenges we see in identifying new opportunities for growth are in how people view opportunities and in how they’re prioritized.
Most professionals typically view them in two different ways: either they’re a very undefined concept or it’s like a business plan or business case.
And developing a business plan or business case can take months of time and a dedicated effort. Organizations can’t do that for every idea.
How to prioritize growth strategy opportunities
There’s a lot more to prioritizing opportunity attractive opportunities than just how big an opportunity is and by how fast a particular marketing is growing.
You want to consider establishing a framework for the discussion, like what’s the barrier of entry to enter into that market, who’s the players in that market, and is somebody already selling products or services that you’ll be competing with.
One of the best practices in accomplishing this is through uncovering business insights that can help you prioritize your decision, faster. Ideally, these are business insights that are delivered to you and your teams in a mere matter of weeks instead of months.
In the prioritization exercise, I’ve found that most professionals want the larger growth opportunities, which can be tough for prioritization. They want to know how big their specific market is, what the total adjustable market is, and ultimately want to go to market with a solution that’s larger from a revenue perspective. They want to target the growing markets and that’s their criteria for attractiveness and prioritization, but it’s not about the size of the opportunity, rather is about where it fits inside your business that’s important to consider.
How to incentivize new opportunities
Let’s not forget incentives.
One of the most powerful pieces to this prioritization is learning about incentives.
- What does your product or service look like from an incentive perspective?
- Are you going to offer it at a lower price offering, upon a soft-launch?
- Are you going to offer your product or service that’s more attractive because it doesn’t have features that are currently unpublished or can’t currently get access to?
- Are there ways to build an audience of influencers with a product that’s newly entering the market, but will have published features based updates and sprint cycles?
Here’s a great example of what this looks like.
Recently, the 10EQS team worked with a company that developed a new way of making fabrics that work well as filters for filtering air and hydraulic fluid and oil and water. They invented a fabric for filter companies that goes into filter cartridges and performs better than their competitors but is priced a bit more expensively. They could guarantee performance, and part of their value proposition is their buyer doesn’t have to change their oil as often and will get a better experience with less problems from their air handling system.
The problem lies in entry into that market as they’d have to convince potential buyers, who were already making filters, to remove the material already in their existing filter and replace it with this new material. But, if I’m a filter maker and my business is operating well, and I have no pain point, why would I do anything different?
My point: there needs to be an incentive for change.
- Is the incentive monetary where I’m going to make more money or be more profitable?
- Am I going to sell more filters, faster, thus generating more revenue, because of this new fabric?
- Are you, as a fabric manufacturer, going to pay me a certain dollar amount for the cost of switching?
It’s almost impossible to break into a new market with so many barriers of entry. In the end, it doesn’t matter whether you come up with a new kind of material, a better separator, or a or world-class wiziwig, you’re not going to see the results you’re expecting because your marketing is already full of players who have prioritized opportunities long before you.
I’ve found the only way to do so is to create a whole new vertically integrated product or service, just to get a new material or a new component into that space.
The solution we’d offer at 10EQS to guide you through these types of challenges would be a market assessment and a value chain assessment. We’d review things like the total adjustable market, how fast it’s growing, and what is your potential for entering into that market. We’d then find and interview existing players that you would essentially be displacing, including their suppliers and their customers. We want to ask the questions that aren’t often addressed.
To wrap this up, prioritizing opportunities is important and so is incentives, as a part of the process to successfully executing your growth strategies.
To learn more about how your team can prioritize and incentivize growth opportunities for your organization, click here to get in contact with us.