How to Become an Entrepreneur Make something better (or cheaper) than what's out there

2. Identify and focus on a growing category (or categories).
Licensing expert and intellectual property strategist Stephen Key recommends picking a category that fascinates you but isn't overly competitive.
"I avoid industries that are notoriously challenging, like the toy industry. There are so many people creating in that space," he explains. "You will have an easier time licensing your ideas if you focus on categories of products that are growing as well as receptive to open innovation."
After you've picked a category, Key says you should study all the products in that category.

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  What are each product's benefits, and how do they vary?
  
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  What's their packaging and marketing strategy?
  
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  What do reviewers say?
  
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  What are the potential improvements?
  

Once you've picked a product, consider questions like:

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  What can be done to improve it?
  
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  Can I add a new feature?
  
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  What about a different material?
  
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  Can I personalize it somehow?
  

3. Fill an underserved demand.
You don't need to reinvent the wheel if there aren't enough wheels. Many people start successful businesses after noticing a gap in the market. For example, perhaps you learn there's a shortage of high-quality sales outsourcing. Since you have experience in sales development and account management at early-stage sales companies, you might decide to offer this service to tech startups.
4. Make something better (or cheaper) than what's out there.
You don't always need to develop something brand-new. If you can offer an existing product at a lower price point, better quality, or ideally, both, you'll have plenty of customers. Better yet, there's clearly an existing demand.
As you go about your day, make a list of everything you use. Then review the list for something you could improve.
Other suggestions

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