The Business Idea/ Market Matrix
I am using this
matrix very often, when I look for new business ideas.
One
very efficient way to get new business ideas is the Business Idea/ Market
Matrix.
I am using this
matrix very often, when I look for new business ideas.
Looks
weird, but it is actually quite useful. So what are the fields I – IV all
about?
Field I (Existing Market/ Existing Business Idea): This field is for business ideas which
people are already willing to pay for. That’s great news, because if you can make
your product just a little bit cheaper or better than the existing product you
will probably
find customers very quickly.
Field II (New Market/ Existing Business Idea): This concept also works very well. Just
look out for business ideas that work well in other countries and copy the business
for your own country. There are thousands of startups that made a lot of money
by following this concept.
Field III (Existing Market/ New Business Idea): In this field, you take an existing market
and try to find new business ideas. Building a startup here is a little bit harder
than in the two fields before, because you have to convince the market of your
new business idea. And this is generally a lot of work.
Field IV (New Market/ New Business Idea): This is were most entrepreneurs want to
go, but where it’s the hardest to make some money. The chance that your startup will
succeed in this field are very low, but if it succeeds you will probably earn a fortune.
Why is it so hard to make money in this field? Because you have to find a new
business idea, convince a market of it AND create this market. This is really,really tough.
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