Market trends can be a friend or foe, a hero or a killer, depending on what you do with them. Today’s article reveals how you can identify them and, more importantly, how to ride them profitably. Read on to find out more.
In this article:
How to Catch Market Trends and Profit from Them
How to Catch Current Business Trends
1. Read Industry Trends and Research Reports Regularly
You’ve got more pressing things to do than study and research on current market trends you may profit from. So, you can take advantage of what’s already available out there.
Just read reports and publications on market trends from reputable analysts or institutions. Avoid turning to financial news sites and the mainstream media because they’re reporting something that has already happened, instead of something that’s entirely new that hasn’t reached their outlets yet.
One of the best reasons you’d be better off reading their reports on a regular basis is because of the way they prepare them. Industry experts often do extensive research and prepare clear, concise, and straight-to-the-point reports that business people can easily understand.
Oftentimes, they prepare reports with executive summaries followed by supporting data and information for those who are particular with details. If you just want to know what’s going on in your industry, the executive summary may be more than enough.
2. Follow the Influencers in Your Industry
For most people, reading through reports and researches can be overwhelming, boring, or both because of the volume of information. If you’re the type who prefers short reads that encapsulate the main ideas or points of trend reports or studies, you may be better off following blogs or publications of top influencers in your field.
The beautiful thing about influencers is they often cite several sources of information when they report on trends and other industry-specific developments. By following them, you can hit several birds, i.e., reports, with just one stone or author.
3. Use Multiple Systems and Tools for Identifying Industry Trends
Identifying trends requires different sets of data, information, and tools according to industry, target market, and business goals. Some of these tools may include Google Trends, Google AdWords, Moz, and your current CRM system.
4. Always Hang Around the Smart Ones
Hanging around smart people, or those smarter than you, can help you gain valuable insights on market trends you may not be able to get on your own. By regularly socializing or being around the smartest in your industry or market, identifying market trends can be as easy as getting the latest gossip at the water cooler.
A good way to do this is by attending conferences, symposiums, and other events specific to your industry that experts usually attend. Through such events, you can hook up with experts from your business’ industry and benefit from the information they can share.
5. Join a Mastermind Group or Create Your Own
Mastermind groups provide opportunities to learn, brainstorm, be accountable, and get much-needed support to succeed in life.
It doesn’t have to be a formalized group, though that could be very beneficial for you. You can also opt to keep a tightly-knit group of partners, peers, or friends as your mastermind group who can give you valuable insights into your field and what’s trending.
6. Ask Right and Listen Well
You can get very good insights on current market trends, or upcoming ones, by going straight to your customers. After all, market trends are primarily shaped by consumers’ needs and wants and by directly asking them about those things, you can get insights on what’s about to trend, what’s already trending, and what’s not.
But don’t just ask any question — ask the right ones. These will give you the answers that’ll give you insights on what’s trending in your industry or niche.
And more than just asking the right questions, listen well to what they’re saying. If you don’t pay close attention to what they’re telling you, all the juicy information they can give you about market trends may just go to waste.
7. Embrace Change
All trends come and go, they replace old ones and new ones replace them, too. Thus, changes are an integral part of trends.
If you don’t embrace change, chances are you won’t be able to ride trends profitably. Either you’ll miss the boat completely or get on it a little bit too late to benefit from it.
Learn to embrace changes and accept the fact that change is the only permanent thing in life.
How to Profit from Industry Trends
1. Only Ride Market Trends Consistent with Your Business’s Goals and Core Strengths
You shouldn’t ride all trends because it’ll spread you and your business too thin. But the worst that can happen is that riding the wrong trend can hinder your business from accomplishing its goals.
Sometimes, the best way to ride a trend is to not get on it. Know your business’ core goals and strengths and see how riding a particular trend stacks up against them.
2. Always Consider the Bottom Line
Before riding a trend you’ve identified, ask yourself whether doing so will increase profitability or not. Will it lead to higher revenues, margins, and/or net profits?
If riding a trend will reduce your business’ revenues, margins, or income, ditch it. Always remember that the point of running a business is to make money, not lose it.
3. Always Remember That Market Trends, Too, Shall Pass
No trend lasts forever; they all end. Just as important as riding the right trend early is getting off it before it’s too late.
When you keep in mind that all trends come to an end, you won’t get attached to them regardless of how much you’re profiting from them. You can easily spot new and developing ones to take advantage of next.
One of the worst things that can happen is getting too attached to a trend and getting stuck in it when it reverses. It can lead to financial losses.
There are two important aspects of market trends: identifying the right ones for your business and capturing or riding such trends. It can’t just be one or the other, you’ll need to do both for your business.
Spotting the right business and industry trends won’t mean much if your business isn’t able to ride them and profit from them, while getting on the wrong trends can result in financial losses. So, you must identify the right trends and ride them well.
Which of the two do you think you should work on improving: identifying the right trends or riding them profitably? Let us know in the comments section below.
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