Council Post: 16 Top Tips For Identifying New Market Opportunities During A Downturn

Entrepreneurs can see market downturns in two ways. Most business owners see it as a sign that they should “batten the hatches” and secure their investment, possibly even taking some losses to ride out the storm. Less risk-averse entrepreneurs, however, see a market downturn as an avenue to new opportunities.

With so many other industries seeing closures, the time is ripe to enter a new market. Even so, not all markets are easy to gain a foothold in. Intelligent business people know that the key to identifying new market opportunities come from weighing the market’s potential. However, in a brand-new industry, it can be challenging to spot the indicators that investing in this field is a good idea. To help, 16 experts from Forbes Business Council offer their expertise to help industry leaders find fertile ground to branch out into during an economic downturn.

1. Remain In Your Core Business

Stay in your core business. In crisis, the gut reaction is to look for new opportunities. A better approach is to move inward toward the core, increase your reserves and be ready to spring forward when the market improves. If that doesn’t work, increase your alcohol consumption. – Andrew Fox, SuperJeweler.com

2. Leverage A Customer-Funded Model

The most creative investment type I find is the customer-funded business model where you ask your customers to pay for an upcoming product or service in return for an exclusive perk. This will make them feel special while helping you get an advanced funding. – Sardor Akhmedov, Jafton.com

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3. Study Your Environment Obsessively

In economic downturns, most people contract due to fear. As entrepreneurs, we need to raise our opportunity-seeking radar and commit to believing there are opportunities for you and that you will find them. Study your environment obsessively and keep asking, “What human needs have changed during this climate?” Many successful brands have launched in recessions as there is always a new rise in demand. – Shaz Memon, Digimax Dental

4. Make Smaller Bets And See What Sticks

In this kind of market, I think less about one new opportunity and more about how I can make a few smaller bets and see which ones are catching on. Watch for those pockets of opportunity. Build agility and readiness in your team to move quickly as opportunities arise. – Cheryl Fields Tyler, Blue Beyond Consulting

5. Find The Gaps

The single most important thing an entrepreneur can do to find and commit to new markets or opportunities right now is finding where the unprecedented transitions we are experiencing are creating gaps. A lot has changed in recent months and more quickly than usual. That has undoubtedly created gaps in what consumers want and what they have. Those gaps are opportunities to attack. – Ray Green, RJG and Co.

6. Always Go All-In 

The key idea is capitalizing on opportunity. There is a limited window where you have to allocate the entire focus of your venture to capture the full benefit. Dipping your toes in is not enough when an opportunity comes knocking. It’s all about intensity and commitment. You have to capitalize on it and execute understanding that it might never come again. – Art Malkov, BlockchainDriven

7. Look For Disruptors

Disruption creates opportunity. For example, look at how local businesses react and adapt the way they operate given the current Covid-19 pandemic. Invest in companies or ideas designed to overcome substantial workflow disruptions. Businesses and customers have had to learn new technology and processes overnight. Many entrepreneurs have also had to figure out how to operate virtually. – Brandon Grable, Grable Grimshaw Mora PLLC

8. Try To Predict The Trajectory Of Changes

A smart entrepreneur would have predicted a market downturn and would have prepared accordingly. That being said, many great companies were started during a recession (Microsoft, CNN, Uber and Burger King, to name a few). A market downturn is usually a time of great confusion and change, and entrepreneurs should keep their eyes peeled to predict the trajectory of changes. – Byung Eun Min, Vintorio

9. Focus On Upselling Existing Clients

It is easier to upsell an existing client than to search for a new one. By identifying the pain points of your current clients, you can expand your existing services or add new services to meet their needs while simultaneously increasing revenue. It’s a win-win for both you and the client. – Frank LaRosa, ELITE Consulting Partners

10. Leverage The Power Of LinkedIn

LinkedIn is a wealth of resources when it comes to understanding where your marketplace is heading. Watch what people are talking about, read the comments on the articles and pay close attention to both industry leaders and startups. Make connections and allow yourself to be pitched. Ask questions. The market is constantly moving, and if you don’t swim ahead of the current, you may just drown. – Charmaine de Souza, Business Mobiles

11. Get Active On Online Forums

Get active in forums, such as Reddit, Facebook, Quora, etc. People are literally online complaining about problems they are having all day and this is a good thing. Look for things that people are consistently complaining about, and down the rabbit hole you go. There are always problems to be solved; you just have to stop and listen to what people are saying. – Edmund Lowman, Slumber Hostel Group

12. Think Outside The Box

I was struck by a company in Asia that operates retail stores. While the store was forced to close during the pandemic, they converted their store team members to social media evangelists, as well as chat support specialists, and rapidly converted to having a strong online presence. This kept people employed and opened a new channel by thinking outside of their retail store “box.” – Lee Shapiro, 7wire Ventures

13. Leverage Your Main Skill

Use your main skill to get small shares of high-performance clients. For example, if you are very good at performance marketing, branding, selling on Linkedin, building a great network or whatever, use it! With a great skill, you can get five to 25% of revenue or company shares depending on how much impact your skill has on the revenue. I’ve done this very successfully with more than 10 companies. – Matt Schuldt, TPA Media GmbH

14. Look For Undervalued Companies

My business partner and I generally look for undervalued, but strongly managed companies. It’s a bonus if your investment is also something you’re passionate about, however, becoming too emotional can be a trap. You need to know when it’s time to enter and when it’s time to exit. If you feel like a cheerleader for a losing team for more than a couple of days, you should probably move on. – S.W. Miliano, Terrazel, Inc./The Stone Register

15. Partner With Well-Known Brands

The economic downturn experienced through Covid-19 has significantly impacted the hospitality, tourism and retail sectors. The most obvious investment opportunity from this is to invest in online retail and online business. However, new e-commerce startups will have significant competition to deal with. I’d recommend trying to partner with well-known brands and influencers to help boost credibility. – Nader Luthera, FURM GROUP LIMITED

16. License Legally Protected Property

One way to create a new revenue stream is through licensing legally protected property, such as a brand name or trademark, to another entity so it can apply it to its own products or services. If done right, licensing is a low-risk investment that generates revenue, extends reach and increases relevance, creating multiple touch points to reach more consumers. – Maura Regan, Licensing International