What Is The Business Opportunity Canvas Tool, And How Does It Work? |
Most people and entrepreneurs that start businesses invest lots of money, energy, and time into their particular business just to try and break even. So it goes without saying that being in business for yourself is somewhat of a financial do-or-die situation. If your product sells, then you are in good shape. But if your product doesn't sell, you could find yourself in a very dire financial situation. As sad as it may sound, most businesses are actually doomed to fail, since most entrepreneurs do not have the proper business training or experience to achieve long-term success. Most products are also not presented in a way where customers can see the immediate benefits or need for that particular product. Given the immense resources that most entrepreneurs devote to their businesses, surely no one wants to fail. But how can you possibly know what your customer wants, or is thinking?
What Is The Business Opportunity Canvas?
There is actually an online business management tool called the business opportunity canvas that can predict just that (what your customer wants and is thinking). This tool works by helping you visualize the strategies of all the major competitors in your particular industry. It can even help you create product comparison charts.
To start using the software, you need to zero in on your specific field or industry. For example, let's say you want to focus on the field of electronics (specifically, the competitive world of smartphones).
How To Use The Business Opportunity Canvas
First, you would make a list of all possible attributes that a customer considers in selecting his or her choice of product (in this case, the smartphone). Although there are many factors that contribute to a customer's choice, you only want to list the main key factors that a customer would consider. For example, in a smartphone, the attributes would likely be the following: screen size, thickness of the phone, camera capability, processor speed, memory size, battery life, and screen quality. Because customers highly value these attributes and actually compare them when deciding to purchase a particular product, these attributes themselves actually become the competitive factors between rival brands and companies.
Next, when using the business opportunity canvas tool, a chart for each product is created and a numerical value (usually 0-5 or 0-10) is assigned to each attribute based on that particular attribute's performance. The business opportunity canvas tool actually helps you plot the values on a graph (the scores are on the Y-axis, while the factors of competition are on the X-axis). The graph easily highlights the areas where you competition is lacking (potentially giving you and your business the opportunity to capitalize on these factors). Eventually, you will compare each company's product based on their factors of competition.
The business opportunity canvas tool can easily help you get a good sense of what your customers want. It can help you better understand where your product stands in comparison to other similar product, as well as give you ideas on how to possibly improve your product. For more information about starting your own business see, The Business Success Blueprint
Edward Rosenberg is a professional business and marketing expert. He has studied, researched, and implemented dozens of various marketing methods for several businesses over the past 5 years. To find out more about Edward, Click Here
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