Many successful small businesses were started by entrepreneurs with an ability to find growth sweet spots. They were able to take their insight and capitalize on it in a new and creative way. Businesses from Uber and Lyft to Airbnb and HomeAway are just some of the most recent examples of entrepreneurs benefiting from emerging trends.
But just because it’s been done before doesn’t mean it is easy to find more growth sweet spots and capitalize on them.
Smart entrepreneurs are always looking for an edge. They want to know how they can identify trends and how they can use that skill to build and grow a business. Fortunately, there are steps you can take develop this skill yourself.
What are consumer growth trends?
A new behavior. A new attitude or opinion. A new expectation. Any of these can form the basis of a consumer trend. Underneath our definition lies a model that juxtaposes multiple dimensions of external change against human nature, which, at its most fundamental, doesn’t change.
Basic needs such us status, creativity, self-improvement don’t change. The way we address these needs through new products and services changes and forms the basis of a new trend.
Can you give an example of a fundamental trend that doesn’t change? – The trend changes. Basic needs stay the same.
But it’s not enough to simply understand a trend. You want to know where and how trends will emerge and crucially, which opportunities they will present to you.
The fundamental growth elements
There are three fundamental elements that drive all trends:
The secret ingredient of trends however isn’t actually any of one of these elements. Rather, it’s the tension created as the three elements interact with one another.
This tension can best be identified by understanding customer expectations and by looking for gaps between what customers want – both now and in the future – and what they are currently being offered.
Understanding this enables you to hit the sweet spot of trend-driven innovation with your new offering – when you beat customers’ expectations and resolve this tension.
Think about how Airbnb changed our expectation from travel towards a more authentic experience, how Uber changed the way we expect to move through the city or Tesla! Who would have thought an electric car can also be sexy to drive?
Here are ten keys to find growth sweet spots:
Anticipate change
I frequently remind coaching clients that the only constant changes. Believe it. Assume that change is coming and look for it.
Change can be either social — as in the rise of socially responsible business — or technological, as exemplified by the growth of mobile commerce. Sometimes change can be both. Social media is a great example of that.
The basic tools of the growth trend tracker are seeing, hearing, smell, taste, and touch. In other words, every sense that can be used to get information about the world should be employed in looking for upcoming changes.
Start by reading and watching everything you can. That should include general interest news outlets, trade publications, blogs, government reports, and casual conversations overheard in elevators. Be especially alert for problems people are talking about.
Consider using trend-tracking tools like Google Trends, Topsy, and Trendhunter to help you zero-in on trends that are worth investigating further. You won’t be the only entrepreneur looking for business ideas on these platforms, but you can use them to dig deeper to validate hunches.
Today, there’s too much broadcasting and not enough receiving. Everyone is focused on pumping out information, but turning off our own signal and receiving and digesting, that’s a skill that has gone away.
I like to immerse myself in a topic by reading about it. I dedicate an hour in the morning, and again before I go to sleep, to reading. I actually schedule it
Look beyond your own boundaries
You have to look around and ask yourself: What are the general trends going on, even though they haven’t affected my business yet?.
Early this century you might have noticed that people weren’t yet ready to buy music by the download, but the way they found new music was shifting. I thought, today it’s record labels, but I can see how companies will become major players launching new music, such as Apple through its commercials, or Starbucks with its stores.
I saw a trend where people weren’t necessarily interested in discovering music by walking into a record shop or watching MTV anymore.
Be realistic
An online retailer that aims to beat Amazon at its own game is unlikely to show up on top of any fast-growing startup lists very soon. Make sure the solution you envision is one you can realistically provide with features and costs that will compare favorably to established alternatives.
Again, it’s vital to talk to potential customers. Don’t just brainstorm in-house. What you can do conveniently and inexpensively may be of little value to customers. The sweet spot for a trend-exploiting startup is at the intersection of business capability and customer needs.
Create a competitive advantage
To get the biggest benefit, be the first mover. It is rare for any single entrepreneur to be the only one who sees an opportunity. Most will hesitate and not move at all. Many others will not move swiftly enough.
Lasting competitive advantage usually goes to the first entrant to stake a market out and capture customer loyalty. Those who come later usually have to settle for slimmer profits and more competition.
Being first is not enough, of course. Business history is littered with well-financed startups directed by well-regarded leaders who committed too much, too early and in the wrong place. So test before committing. Again, look for revenues that overwhelm costs and customers who are overjoyed.
There is no silver bullet when it comes to spotting trends. Trends reveal themselves over time from a variety of places. Spotting a growing pattern means you must have your eye on multiple sources long enough to notice changes. This takes some intentionality, but it doesn’t have to tie up all of your time.
Choose your sources
Just as it took multiple sources—bloggers, Facebook, word of mouth—to realize that the time is ripe to visit Colombia, spotting a trend in other industries is much the same.
As you put together a list of blogs, news sites, social media channels, and other sources, here are some tips to help you hone in and filter extraneous content:
Follow trustworthy thought leaders
When selecting your sources for news and information, find reputable resources you can trust. These are people who are experts in their field, brands whose information you find to be reliable and valuable.
I follow a number of travel bloggers who have been in the business for years. Most of them I’ve found through other people I follow or trust. When their blogs are too gimmicky or inauthentic, I stop reading. Be selective and filter out the noise.
Spotting growth trends
As a blogger in the world of transformational travel, I follow like-minded bloggers online and develop personal relationships with other travelers who share my values. Why? Because these folks filter all the overwhelming noise and deliver me information that I actually care about.
Often, I’ll start to hear more and more about a particular destination from various bloggers and travelers who aren’t connected to each other. This is the first inkling of a trend.
A handful of bloggers will visit the same spot and write about it. Then I’ll hear a former student of mine raving about their recent trip to the same place. Next, two different friends on Facebook are sharing pictures from this place.
These are destinations that, not too long ago, had almost no tourism to speak of. No one particularly wanted to go there. But pretty soon, the destination became almost mainstream.
When I’m tuned in to the people I care most about and all of them are talking about the same thing, I know it’s worth paying attention to.
The result of uncovering this growing trend for Colombia is that now it’s at the top of my list. I can be sure to travel there while it’s still relatively “untouched”—before it becomes overly touristy and travel prices get inflated.
Take care on choosing sources
Just as it took multiple sources—bloggers, Facebook, word of mouth—to realize that the time is ripe to visit Colombia, spotting a trend in other industries is much the same.
As you put together a list of blogs, news sites, social media channels, and other sources, here are some tips to help you hone in and filter extraneous content:
Look outside your industry
In addition to watching what’s going on in your own niche, it often pays to expand your horizons. Our world is so interconnected, true trends pop up everywhere. Keeping an eye on developments in other fields can sometimes be key in predicting changes closer to home.
The bottom line
To be effective in this new era of trend spotting, we as marketers need to see our jobs differently. No more just focusing on metrics like clicks, video views, or social media shares.
Today we need to manage not for stability, but for disruption. So instead of just planning against established metrics, we also need to continually ask what we’re doing to explore the unknown.
Not all who wander are lost.
We must successfully integrate our function with other business functions to create entire trend experiences that serve the customer all the way through their experiences throughout the business.
We can do better. Much better. But first, we need to stop seeing ourselves as crafters of clever brand messages and become creators of positive trend spotting.
All you get is what you bring to the fight. And that fight gets better every day you learn and apply new insights that you have learned.
When things are not what you want them to be, what’s most important is your next step.
Test. Learn. Improve. Repeat.
Are you devoting enough energy to improving your continuous learning for yourself and your team?
Digital Spark Marketing will stretch your thinking and your ability to adapt to change. We also provide some fun and inspiration along the way.
Check out these additional articles on market trends from our library:
Mike Schoultz is a digital marketing and customer service expert. With 48 years of business experience, he consults on and writes about topics to help improve the performance of a small business. Find him on Facebook, Twitter, Digital Spark Marketing, and LinkedIn.
What skill matters most if you are a leader of a small business? Or perhaps for any business leader? We agree with John Maxwell’s motivational leadership traits. The most critical is the ability to motivate.
For a small business, to develop the best qualities in creating a motivational leader is more critical to the daily operations.
Why? Because there is much less leadership to be involved. And fewer employees so you need everyone fully engaged and motivated.
The key to successful leadership today is INFLUENCE, not AUTHORITY.
– Ken Blanchard
So … you need to pay attention to the development of your motivational leadership abilities if you are a leader of a small business.
Here are some of John Maxwell’s important motivational leader qualities for your thinking and improving your ability to influence. Do you, as a business leader:
John Maxwell’s motivational leadership traits … put people first
People should always come first, they are your business. No matter what the job is, leaders always want to look for the best people and then take care of them. They are the lifeblood of the business.
When you’re leading a business or an organization, you’re leading people. Many leaders work to have relationships with their employees. Taking them out for coffee and getting to know them better is common, an important element of being a leader. Here are two additional perspectives from exceptional business leaders:
You can design and create, and build the most wonderful place in the world. But it takes people to make the dream a reality.
– Walt Disney
You have to treat your employees like customers.
Herb Kelleher
John Maxwell’s motivational leadership traits … develop strengths
Focus on recognizing and developing the strengths of your people. Build on strengths … work on weaknesses.
Some companies follow the motto: “hire for character, train for skill.” You hire people that are eager to learn and are very “raw.”
They don’t have a ton of skills; but as a leader, you teach them, and they become better. They grow with your company and contribute to its success.
You see this with football coaches. In football coaching, it’s almost unheard of for someone with no experience to be hired as the head coach of a team.
Most people start in a low-level position and gradually move up.
The same occurs in business. George Bodenheimer is the former president of ESPN. He started out working in the mailroom of ESPN.
It would have been very difficult for him to rise to the presidency if he hadn’t had a boss who wanted to help him grow and succeed in the company.
If you’re a leader, help your employees grow. You might have a great employee waiting to be a star, but if you don’t help them grow, you’ll never see it.
Worse, they might leave the company to go to an employer who will help them grow.
…effective executives do not start out by looking at weaknesses. You cannot build performance on weaknesses. You can build only on strengths. Make weaknesses irrelevant.
– Peter Drucker
John Maxwell’s motivational leadership traits … develop self-esteem by mentoring
Mentor and develop self-esteem and a positive attitude. We have written on employees’ positive attitude on several occasions.
Employee attitude is so critical that it can’t be overemphasized. It often trickles down from leaders, but it needs to happen more by design. Your business can never be what it can be if you don’t focus on employee happiness.
If you’re an entrepreneur, you’ll have dozens of people criticize you. Customers, current and former employees (whether you know it or not), and family and friends may give you constructive criticism.
It can be stressful to hear or read, and it can be easy to pass on criticism to employees. But it doesn’t help that much. As a leader, you should ensure employees have high self-esteem in their job.
Leaders should make employees feel good about themselves. Constantly criticizing and pointing out the flaws in an employee is a sure fire way to decrease morale and performance.
John Maxwell’s motivational leadership traits … listen and observe
Listen, hear, and observe closely. Find the unspoken messages. Make listening and observing your core competencies.
You don’t gain insights by talking. Ideas can come from anywhere, so it’s important to keep your ears open to new ideas and insight.
Leaders need to be good listeners for everyone, from customers to employees to business colleagues. They need to listen to what other people say and not just hear it.
Listening also helps a leader to get multiple perspectives. When making a decision, a good leader always listens to some different people. They know they own the final decision but always make sure they get input from multiple people.
It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president.
He was seriously interested in who you were and what you had to say.
Sara Lawrence-Lightfoot, Respect
Be a connector
Want to be a connector?
Be social … walk around and connect on multiple levels. Connected leaders quickly become multiplier leaders.
Multiplier leaders know that at the apex of the intelligence hierarchy is not the lone genius, but rather the leader who knows the importance of bringing out the smarts and capabilities in everyone around them.
We love to use this quote from Marty Kohr, as it is key to being a connected, multiplier leader:
The key is to be part of people’s lives. People will always prefer to do business with friends.
John Maxwell’s motivational leadership traits … inspire and energize
Share your passion. Show compassion and share positive energy always.
A quality of great leaders can articulate ideas and get people excited and inspired by them. It’s not selling people on an idea; it’s inspiring them.
Getting a person to work with a leader when they’re not obligated is more than just inspiring them. It’s about ensuring people have fun and are energized with passion.
Many charities get people to volunteer for them by inspiring and energizing a noble cause. They say that if you donate, you’ll be spending your time working toward something greater than yourself.
This inspires people to take a few hours to work for a charity promoting a cause they believe in.
People want to be part of something larger than themselves. They want to be part of something they’re proud of, that they’ll fight for, sacrifice for, trust.
John Maxwell’s motivational leadership traits … problem solver
Be a problem solver. Resolve issues before they become problems.
Let people know you care about their problems enough to clear them out of the way.
Have balance
Your job is just a part of your life. It is not your life.
There is much more to life than work … find things you love outside of work. Find a balance that works for you and then show it works to your people.
Follow these tips, and you will be well on your way to becoming a more motivational leader.
Here is the bottom line
Our favorite motivational leader of all time? There would be many we like and studied. But our favorite would be Abraham Lincoln.
He worked to achieve mastery of law and politics. He gave his toughest rivals power and autonomy. In fact, he surrounded himself with rivals who excelled in areas where he was not strong.
He gave credit where it was due and wasn’t afraid to accept the blame. He genuinely sought out and listened to other people’s point of view.
His motivational leadership style was rooted in two higher goals: freeing the slaves and keeping the nation intact. Big motivators for most Americans, yes?
Who would be your example of the best motivational leader? Any questions or comments, please add them below.
So what’s the conclusion? The conclusion is there is no conclusion. There is only the next step. And that next step is completely up to you.
It’s up to you to keep improving your continuous learning. Lessons are all around you. In many situations, your competitor may be providing the ideas and or inspiration. But the key is in knowing that it is within you already.
All you get is what you bring to the fight. And that fight gets better every day you learn and apply new lessons.
When things go wrong, what’s most important is your next step.
Try. Learn. Improve. Repeat.
Are you devoting enough energy to improving your continuous learning for yourself and your team?
Do you have a lesson about making your continuous learning better you can share with this community? Have any questions or comments to add to the section below?
Digital Spark Marketing will stretch your thinking and your ability to adapt to change. We also provide some fun and inspiration along the way. Call us for a free quote today. You will be amazed at how reasonable we will be.
More reading on continuous learning from Digital Spark Marketing’s Library:
Mike Schoultz is a digital marketing and customer service expert. With 48 years of business experience, he consults on and writes about topics to help improve the performance of a small business. Find him on G+, Facebook, Twitter, Digital Spark Marketing, Pinterest, and LinkedIn.
How do some people seem to know about the next big thing way ahead of everyone else? Because they know how to recognize early signs of change. That leads them to key trend spotting techniques and trend marketing.
A trend is a general tendency or direction in which something’s going to move, develop or change.
It’s defined by a shift in mentality or behavior that then influences a large group of people.
Pay attention though. This is not to be confused with ‘fashions’ or ‘fads’ which increase dramatically followed by an almost immediate decline.
Trends last much longer and have a much greater impact on society.
A new behavior. A new attitude or opinion. A new expectation. Any of these can form the basis of a trend.
Underneath our definition lies a model that juxtaposes multiple dimensions. Dimensions include external change against human nature.
Basic needs such us status, creativity, self-improvement don’t change. The way we address these needs is through new products and services. These changes form the basis of a new trend. Can you give an example of a fundamental trend that doesn’t change?
But it’s not enough to simply understand a trend. You want to know where and how trends will emerge. More importantly,opportunities they will present to you.
Why trend spotting?
It’s important to be on the lookout for the newest trends. They will allow you to plan more effectively for the future and introduce more successful initiatives to your business.
By focusing on what will happen next, you can make more informed decisions in less time. This will save a lot of energy and money in the long run.
Trend marketing … fundamental trend elements
There are three fundamental elements that drive all trends:
Basic Needs
Drivers of Change
Innovations
The secret ingredient of trends, however, isn’t any of one of these elements. Rather, it’s the tension created as the three elements interact with one another.
This tension can best be identified by understanding customer expectations. And understanding for gaps between what customers want – both now and in the future – and what they are currently being offered.
Understanding this enables you to hit the sweet spot of trend-driven innovation with your new offering. It also allows you to beat customers’ expectations and resolve this tension.
For example, think about how Airbnb changed our expectation from travel towards a more authentic experience. Also consider how Uber changed the way we expect to move through the city. Or how Tesla changed the way consumers thought an electric car could also be sexy to drive?
Listen and observe
Today, there’s too much broadcasting and not enough receiving. Everyone is focused on pumping out information.
But turning off our signal and receiving and digesting, that’s a skill that has disappeared.
How do I do it? I like to immerse myself in a topic by reading about it.
I schedule an hour in the morning, and again before bed to this to reading.
I schedule it. I also carefully observe things going on around me. It is amazing how much you can learn. Pay close attention and take notes.
Distinguish between short-lived and long-term
Strive to identify big changes. Changes that create lasting problems that lots of customers will be happy to pay to solve.
The idea is to wind up with a business model in which revenues are much larger than costs for a long period. Not a model that limps by on slender profit margins before competitors take even that away.
To filter out fads, talk to the potential buyers of the solution to the problem.
The more frustrated they are, the more likely they are to pay for a solution. In extreme cases, potential customers may be willing to fund the development of solutions.
Also, talk to experts. While they may not be able to write checks, they can provide insights and point to possible solutions.
Solutions that customers could not even imagine.
Trend marketing careers … follow trustworthy thought leaders
When selecting your sources for news and information, find reputable resources you can trust. These are people who are experts in their field. And brands whose information you find to be reliable and valuable.
I follow some marketing bloggers who have been in the business for years.
Most of them I’ve found through other people I follow or trust. When their blogs are too gimmicky or inauthentic, I stop reading.
Be selective and filter out the noise.
Look beyond your boundaries
You have to look around and ask: ‘What are the general trends going on, even though they haven’t affected me or my business yet?’
For example, many noted that people weren’t yet ready to buy music by the download. Few also noted that the way they found new music was shifting.
They could see how companies could become major players launching new music, such as Apple through its commercials, or Starbucks with its stores.
What was the trend? It was where people weren’t necessarily interested in discovering music by walking into a record shop or watching MTV anymore.
Once you’ve collated information and the latest news from your chosen area, you can start to group articles together. Then assess them and find connections between the elements.
Tools for collating and bookmarking your findings:
Evernote – A great tool that lets you assign photos, docs, scans, notes, for future reference.
Pinterest – A great content sharing service that allows members to “pin” images, videos and other objects to their pinboard for future reference.
Delicious – An online social bookmarks manager that lets you save, organize and discover interesting links on the web.
Freemind – great free tool for creating mind maps
Old fashioned pen & paper, sticky notes & white boards!
Key trend spotting techniques … test assumptions
Once you have connected the dots between your findings and found re-occurring themes and connections, you can then assess the potential trends. See how they are doing in the current landscape, and make potential predictions for the trends in the future using the following:
Google Keywords: By using Google keywords you can see the average number of searches that your potential trend is typed into Google each month. Compare them to other trends and keywords.
Google Trends: Google Trends is really good for seeing the fluctuation of trends. It also permits how well they’ve done in the past and how well they’re doing now. They also permit predictions of how well they’ll do in the future.
Then ask yourself the following:
What are the needs that the trend satisfies (is it a trend or fad)?
How many people won’t be able to or be interested in taking advantage of the trend?
What will affect the speed of the trend?
Where is the trend now – who’s currently using it on the innovation curve?
Once you have a solid idea that’s a trend and that it will survive, find out the following:
What demographics are you targeting (get to know them and ask them questions)
What is the investment required and how profitable is the idea?
What’s the longevity of the concept?
The basic tools of the trend tracker are seeing, hearing, smell, taste, and touch.
In other words, every sense that can be used to get information about the world should be employed in looking for upcoming changes.
Start by reading and watching everything you can. That should include general interest news outlets, trade publications, blogs, government reports and casual conversations.
Be especially alert for problems people are talking about.
Create a competitive advantage
To get the biggest benefit, be the first mover. It is rare for any single entrepreneur to be the only one who sees an opportunity. Most will hesitate and not move at all.
Many others will not move swiftly enough. Lasting competitive advantage usually goes to the first entrant to stake a market out and capture customer loyalty.
Those who come later usually have to settle for slimmer profits and more competition.
Being first is not enough, of course. Business history is littered with well-financed startups directed by well-regarded leaders. Leaders who committed too much, too early and in the wrong place.
So test before committing. Again, look for revenues that overwhelm costs and customers who are overjoyed.
For every trend that supports a future startup star, any number go ignored. Many leave potential customers searching for solutions and opportunities for established companies to fill their needs.
But it only takes timely identification of one trend to get a startup in flight, and these techniques can point you to the one you need.
There is no silver bullet when it comes to spotting trends. Trends reveal themselves over time from a variety of places.
Spotting a growing pattern means you must have your eye on multiple sources long enough to notice changes.
This takes some intentionality, but it doesn’t have to tie up all of your time.
Just as it took multiple sources—bloggers, Facebook, word of mouth—to realize that the time is ripe. It will yield a visit to Colombia. Spotting a trend in other industries is much the same.
As you put together a list of blogs, news sites, social media channels, and other sources, here are some tips to help you hone in and filter extraneous content:
Look outside your industry
In addition to watching what’s going on in your niche, it often pays to expand your horizons.
Our world is so interconnected; true trends pop up everywhere.
Keeping an eye on developments in other fields can sometimes be key in predicting changes closer to home.
The bottom line
Many successful businesses were started by entrepreneurs with an ability to see a trend before everyone else. They were able to take their insight and capitalize on it in a new and creative way.
Businesses from Uber and Lyft to Airbnb and HomeAway are just some of the most recent examples of entrepreneurs benefiting from emerging trends.
But just because it’s been done before doesn’t mean it is easy to see trends first and find ways to capitalize on them.
Smart entrepreneurs are always looking for an edge.
They want to know how they can identify trends and how they can use that skill to build and grow a business. Fortunately, there are steps you can take develop this skill yourself.
Need some help in building better customer insights from your customer engagement? Creative ideas to help grow your customer base?
Call today for a FREE consultation or a FREE quote. Learn about some options to scope your job of growing customer insights and pay for results.
Call Mike at 607-725-8240.
All you get is what you bring to the fight. And that fight gets better every day you learn and apply new insights that you have learned.
When things are not what you want them to be, what’s most important is your next step. Call today.
Test. Learn. Improve. Repeat.
Are you devoting enough energy to improving your continuous learning for yourself and your team?
Digital Spark Marketing will stretch your thinking and your ability to adapt to change. We also provide some fun and inspiration along the way. Call us for a free quote today. You will be amazed how reasonable we will be.
Check out these additional articles on customer insights from our library:
Mike Schoultz is a digital marketing and customer service expert. With 48 years of business experience, he consults on and writes about topics to help improve the performance of small business. Find him on G+, Facebook, Twitter, Digital Spark Marketing, and LinkedIn.
