Sometimes Only the Supply Method Needs to Change: Lessons from Uber
Every business resolves a need or improves the solutions for meeting a need. Just like your competitors, you enter the market to meet the customers' needs. The jump point is to offer new products and services by identifying the consumers' potential needs, or by finding novel supply methods.
Change in product is not always necessary. A different supply method often changes everything. For example, Uber has not revolutionized the transportation system. The taxi has already existed. They just changed the supply method, applied technology and made it easier for the passenger to take a taxi.
Basically, a need is not generated; most of the time it is latent. New needs emerge when a new product enters the market. This need has already existed, but no one had paid any attention to meeting it. A smart view is to see what happens in the field of technology, so your business can be synced with it or get ahead of it.
You also need to check how consistent your plan is with the target market. If you take a smart perspective, you will realize what your customers need along with their present demands. In this analysis, you can research details and add questionnaires, and field and online research, to identify the consumers' needs and resolve their other needs as you enter the market.
Latent needs are a part of the target market's needs. You are aware of some of them, and you identify some other ones by studying your competitors. The products and services your competitors provide are the clear need of your target market.
If your business does not meet any need or does not offer an optimal solution for a problem, you must start to worry. This issue is one of the problems that can make you drop the idea of starting a business. You do not necessarily get to this conclusion only at the end of the business plan.
In Canada, someone spent tens of thousands of dollars to research the poultry and egg industry just to establish a poultry factory farm. He eventually realized that the area was saturated, so he dropped the idea of starting the business and prevented his million-dollar loss.