Finding an Idea

Should I look for gaps in the market or trends?

Answered by Unleash Your Ideas.

Pure gap OR pure trend

Gap: often empty for a reason
Trend: may collapse before you are ready
Each risky on its own

The intersection

An unmet need riding a trend
Demand that is real and rising
Where durable businesses live

Answer

Gaps in the market that align with a trend. Pure gaps often exist because nobody wants what fills them. Pure trends often collapse before you're ready. The intersection is where durable businesses live.

Quick Facts

A pure gap is often empty because nobody wants what fills it, which is the no-market-need trap behind about 42% of startup failures.

Source: CB Insights

Riding a proven, rising demand as a follower rather than a pioneer cuts the failure rate from roughly 47% to about 8%.

Source: Golder & Tellis (1993)

About half of new businesses reach five years, and the survivors tend to sit where a genuine need meets a durable trend rather than a passing fad.

Source: U.S. BLS Business Employment Dynamics

Questions For You

List three trends in your industry and three unmet needs. Which combinations actually overlap?
Is the gap you spotted empty because it is untapped, or because people have tried and nobody wanted it?
Will the trend you are counting on still be here in three years, or is it a fad you would be chasing?

A Word of Inspiration

Asking whether to chase gaps or trends means you are already thinking like a strategist, not a gambler. The best answer is the overlap: an unmet need that a real trend is pushing forward. Find that intersection and you get demand that is both real today and growing tomorrow, which is exactly where you want to plant your flag.

Try this today

List 3 trends in your industry. List 3 unmet needs. Which combinations exist? Those are your candidates.

Sources & Citations

This resource is educational and does not constitute legal, tax, or financial advice. Consult qualified professionals for decisions specific to your situation.