How to Spot a Gap in the Market
James Caan CBE
Recruitment Entrepreneur Chairman | Serial Entrepreneur | Dragon on BBC's Dragons’ Den (2007-2010)
I have always been a huge supporter of start-ups and small businesses. I passionately believe they are the heartbeat of the economy, and that’s one of the reasons I get involved with projects such as The Business Class. It’s a great opportunity to meet entrepreneurs, hear about their journey, and give them advice to help them along the way.
Over the last 2 series' of The Business Class I have seen many exciting businesses. One business that has recently experienced an incredible story is Shutl, a delivery service firm who were on Series 1 last year. This week they have been acquired by eBay. This is not only great news for them, but I believe it shows what a hotbed of entrepreneurial talent we have in the UK. For a British business to grow in the space of four years as they have, and then attract the attention of a company such as ebay, is a real success story.
I know there are many people starting a business in the UK today – over 400,000 have been launched this year alone – and many of these have the vision of one day growing to a scalable level. This is by no means an easy task; starting and running a business is extremely tough. But I have always said that certain ingredients are essential for you to succeed, and Shutl have shown these in abundance.
One of the main things you need is a Unique Selling Point. If you don’t have one, then you’re dead in the water. Remember, you don’t necessarily need to come up with a brand new idea or invention. You simply need to take an existing idea and do it better. You may be faster, cheaper or have a better focus on customer service - either way you need to find a differentiator. EasyJet for example didn’t invent the concept of flying, but they certainly found a solid USP.
In the case of Shutl, their idea was something which has been around for years. However the founder spotted a gap in the market by looking for what wasn't being done. You have to put yourself in the mind of a customer and think about something they need which currently isn't available. You then need to work out if it is feasible and profitable.
Shutl's USP was to offer people nationwide delivery within 90 minutes of buying something online, by combining multiple courier firms together. One of the strengths of e-commerce is that it is quick and convenient, but until now, this hasn’t been transferred to delivery. From a business point of view, merging these things together was a great idea.
Another ingredient is passion for what you are offering. The founder of Shutl had his own issues with deliveries and after realising this was a problem faced by many, he wanted to solve this. He had a real desire to solve delivery issues for online shoppers everywhere, and when you have this desire, it drives your business on to great things.
Finally, you need a great team. Shutl have had good backing from investors, partners and of course their actual delivery team. The important thing to remember here is that everybody involved shared the vision and brand values as the founder. I often speak about the recruitment process being crucial for any organisation, and for startups especially it is important to hire people who are in line with your thinking.
I believe this is a great time for British businesses, with the economy recovering and more people realising the importance of SMEs and entrepreneurs. Hopefully a story like this will inspire those startups across the country, and we will see more businesses taking the required steps to grow.
Retired at Par-Transmarketing, Inc., Par5 Ranch, and Eagle Global Logistics
10yGood example. My company Par-Trans Marketing, Inc. is a non-asset based company that markets freight services. I have spotted a gap in services and am in the process of raising capital to expand my company's services to fill the gap. I am enjoying your articles. Thank you
Ambitious & Self Motivated Managing Director, Investor and entrepreneur
10yI have a company called the platform lift company in a market only 15 years young and growing worldwide......no big players yet within the industry (supplying disabled platform lifts into all commercial & residential properties).......and a real desire to make it a worldwide name selling licences worldwide with already 5 licence holders in Australia, a great British company wanting to make it on a world wide stage...thoughts please www.platformliftco.co.uk
Account Manager at The Business Software Centre
10yClearly that "desire" is the key to any successful business or B2B & B2C sales
Country Manager at Cenoa
10yWonderfully inspiring article, I operate far way in Nigeria, West Africa but I must say my belief in the successful start-up of a business from a gap has just waxed stronger. Thanks for sharing, hoping that someday you'd work with African entrepreneurs like us.
Top expert on higher sales of printed media
10yVery true: A niche in the market where not all performed in this niche. Very wisely: Remember, you don’t necessarily need to come up with a brand new idea or invention. You simply need to take an existing idea and do it better. An example of the print media: 1. Print media in the 21st century are a new concept that is different from the concept of the 20th century. 2 . The concept of print media of the 21st century is diametrically opposed to the concept of the print media of the 20th century. 3 . Print media of the 21st century are at least a dozen of advantages over the internet . 4 . Business print media of the 21st century is the gold business . 5 . Business print media of the 21st century is the " ostrich ", which lays only the golden egg. 6. The concept of the print media of the 21st century after its introduction (with the help of my project) multiplies the demand for print media several times.