"It's very easy to spot gaps in the market. The real insight is plotting whether there is a market in the gap." - Bright Simons", CEO of Mpedigree, at Africa@Scale 2024. This quote hits home for every entrepreneur and business leader. At our recently concluded Africa@scale Summit, this was one of the key conversations held. While we often pride ourselves on identifying market gaps, Bright reminds us of a crucial truth: not every gap represents a viable business opportunity. It's a powerful reminder that successful innovation isn't always about finding what's missing but understanding if there's genuine demand and willingness to pay for a solution. Many startups fail not because they didn't spot a gap, but because they didn't validate if that gap had a sustainable market. As entrepreneurs, this insight is important for our journey to participate in the global economy. #entrepreneurship #innovation #businessstrategy #marketresearch #startup #Africa@scale #AHC
Hmmmm. Qualifying opportunities in an information starved environment is rather tricky.
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Sometimes we can deliberately plan to stimulate demand for an gap identified.
Bright Simons all the way ✨️ 🫡🫡
Such an insightful quote! Thank you for sharing!
GREAT INSIGHT
Business Strategy | Unlocking Insights with Precision: Data Reporting Analyst | Empowering Businesses with Actionable Intelligence
1moBright Simons’ quote, “It’s very easy to spot gaps in the market. The real insight is plotting whether there is a market in the gap,” succinctly underscores a fundamental challenge for entrepreneurs: understanding the distinction between opportunity and illusion. The concept of Total Addressable Market (TAM) is central to this understanding. Why does TAM account for 80% of the research before creating a market niche? • Market Validation: TAM helps determine whether a gap in the market is supported by sufficient demand. For instance, while a new type of agricultural software may fill a perceived gap, does the size of the farming community using technology in that region justify the investment? • Resource Allocation: Understanding TAM allows startups to prioritize resources effectively, ensuring time, capital, and effort are channeled into markets with viable returns. • Strategic Focus: Without TAM, it’s easy to spread yourself thin, chasing opportunities with little reward. For example, if a startup identifies a niche product in Ghana but the total addressable market is limited to 10,000 customers, it may not be worth the investment unless pricing or scalability align. Hit me : president@pivotbianalytics.com