Identifying market gaps is one of the most important things that any business owner or company can do, as market gaps are opportunities disguised as voids.

Specifically, the market gap is the area that none of the other competitors, or even non-competition from companies that are already operating, offer.

For example, Netflix has been able to identify market vulnerabilities over the years and exploit them in the best possible way, making them today worth billions of dollars.

At first, the company solved the problem of renting movies through a mail-order service, and then Netflix launched a service for broadcasting movies and series over the Internet, which is currently spreading and popular among the general public.

Each time, Netflix was looking for the problem and then the market gap that no one had yet met so that the company could meet it in the best possible way, and acquire the audience that fell into this gap.

Whether you are starting a new venture or company, or you have an existing company and are looking for growth opportunities, the process of identifying market gaps can be an amazing source of inspiration for great, actionable ideas.

In the following lines, there are some tips that you can use in identifying the market gaps available around you and taking advantage of them.
Identifying market gaps
Evaluate your strengths
Here, you will not only search for the right idea, but it must be the right idea for the right person, as you can find, for example, one of the market gaps that your business cannot take advantage of, so you must know exactly where your strengths lie before you start identifying Market loopholes around you.

Start by making a list of your perceived strengths, user experience, and expertise to guide you toward this list.

Think about the things you do often, your successes, and then check past performance reviews to find something that gives you some insight into what you’re looking for.

You can also contact your colleagues to get honest feedback on your strengths or take a professional aptitude test that can identify strengths that you can explore in a small business environment.

niche markets

Usually, small business owners think broad when it comes to the market, however, it is best to think professionally when it comes to finding or identifying market holes. The more specific your market is, the more effectively you can target it.

Of course, you want the market to be big enough to sustain growth, so the market shouldn’t be to niche, and it should have a lot of products already in place, to make sure there’s a demand for this niche market.

Also, there must be a customer base that is easy to identify, and without these things, the niche market would not be large enough to support a small business.

On the other hand, niche markets help to know the gaps that can be exploited, by looking at other similar niche markets.

for example; If something works in women’s clothing, the same can be applied to teenage girls’ or children’s clothing, where there is a high probability of success.

Changing local laws and regulations

Sometimes an industry goes through major changes for legal reasons related to legislation, and such legislation – whether local or national – can create loopholes and gaps in the market, as it forces an entire industry to make changes that were not envisaged.
If you can anticipate these changes before others, this can help you to identify market gaps early, and thus capitalize on your earnings growth.

So you should keep track of the legislation related to your industry, whether it is local legislation within a city setting only, or national legislation at the entire state level.

Identify unsolved problems

Market gaps are the answer to a problem that does not currently have a solution, and solving this problem will introduce the company to new customers and help sell products very easily.

A straightforward way to find these hidden loopholes is to ask potential customers what they are missing in the market right now, and this can also be done by researching industry trends.

You can also look at the worst reviews that competitors receive, as this gives you insight into what your competitors are doing wrong, so you can benefit from it.

In the end, it can be said that identifying market gaps not only helps in developing sales and increasing profits but also helps in avoiding entering markets crowded with competitors and products, thus wasting a lot of time and effort. Through the previous tips, you can identify and describe your company’s target market, and the reasons for choosing it in your business plan.