What are the various ways in which an entrepreneur spots trends?

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 its 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. 1. Make sure your solutions are 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 need. 2. See it coming: 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 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. 3.Anticipate change: I frequently remind coaching clients that the only constant is change. 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. Don't forget the cyclical, up-and-down, back-and-forth nature of business while you are looking. Change doesn't have to be permanent to provide a viable opportunity for business creation and growth. When the real estate crisis hit in 2008, construction activity shrank, and many people were forced to make do with what they had. But trend-spotting entrepreneurs were able to adjust their plans depending on the market. For example, savvy interior designers marketed their services to those who wanted something new but couldn't find or afford a new home. read less