7 areas of business opportunity

[Brother]

You probably wouldn't buy a car without testing it, or a house without first examining every square meter in it. In our daily life, it is completely normal for us to behave in which we consider the product from different points of view before we buy it - this helps to make the right choice. The same goes for starting a business or project. We must carefully study all aspects, because otherwise we will have to pay with our time and money. The Mullins Seven Areas Model helps you explore seven key factors that influence the success of a business or new idea.

About the model​

The model was developed by entrepreneur John Mullins and published in 2003 in his book The New Business Road Test. It is written for aspiring entrepreneurs, but you can use it to launch any new projects.

The model must be used before the business plan is ready. It consists of seven areas. When you look at each one individually and answer the key questions, you will have a clear idea of whether your business is going to be successful. You will also be able to guess what difficulties you will face and will be able to take the necessary actions.

Seven areas of opportunity​

Market area / Macro level: market attractiveness​

This area examines the attractiveness of the market from the macro level, that is, it allows you to see the big picture.

Look at the whole market.

• How big is it in terms of the number of consumers, sales volumes and the number of units sold?
• Study trends within this market. Has he grown up in recent years?
• If so, is there a trend towards further growth?

It is very important to make sure that the market is big enough to give you the opportunity to grow. In the end, there is a better chance that you will succeed in a growing market.

Use the PEST model to investigate the factors that influence the market.

Market area / Micro level: advantages and attractiveness of the market sector​

Your product is unlikely to appeal to all consumers, so focus on one market sector.

To identify this segment, look at the micro level of your market. Consider the following questions:

• What segment of the entire market is the most attractive for your product?
• How does your product differ from those on the market?
• What are the trends in this segment? Is it growing and, if so, is there a tendency for further growth?
• If you succeed in this segment, what other segment of the market would you like to access?

Industry Area / Macro Level: Industry Attractiveness​

Now we should pay attention to the whole industry from the point of view of the macro level. Identify other industries that compete with yours and ask yourself how easy it will be for you to enter. If so, then there is a flip side of the coin - your potential competitors will follow your example.

Answer the following questions:

• Is the competition being fought in fair or dishonest ways?
• Do companies steal ideas from others?

Collect all information about your competitors and analyze their activities.

Pay attention to consumers and suppliers as well. What is the income level of your potential customers? Do suppliers set their own terms?

Industry Area / Micro Level: Sustainable Advantage​

It's time to take a closer look at your industry. Think about what knowledge and technology you need to maintain your competitive advantage.

How easily can your competitors duplicate your products? What resources do you have, but your competitors do not? And what do you not possess, in contrast to them? This can be patents, finance, production.

Team area: mission, aspirations, addictions, risk​

Ask yourself why you started your business. Are you on fire with the idea? Why? What do you want to achieve with your business - do you have ambitious plans or just your lifestyle? Some entrepreneurs just love being bakeries, they live it and don't want to expand. Are your personal goals and values consistent with your company's goals and values? Are you ready to take full responsibility and work hard towards your goal?

Think about the motivation of your team. What is she hoping for and why? Does their motivation match yours? Have you mentally prepared them for the hard work?

Team Area: Ability to Follow Critical Success Factors​

Answer the following questions:

• What decisions and activities will significantly harm your business if you make mistakes in them?
• What decisions and activities can bring significant benefits if done correctly?

Think about the skills and abilities of your team. Are you confident that your team is capable of doing their job effectively? Are there any gaps in their knowledge?

Team area: connectedness, incoherence throughout the value chain​

Think about suppliers and investors. Who do you know of those suppliers who will provide you with the necessary material on time? How good is your relationship with them? Do you know investors?

Also write down a list of potential distributors and analyze potential customers. How can you effectively tie the former to the latter?

You have to do a lot of work to ensure that there is no weak link in your environment. Think over everything very carefully and learn to negotiate.

We wish you good luck!