Looking for Opportunity

Regulatory Change

1.       Unmet need – dealing with new overtime rules - Help businesses switch to the new Overtime Rule Effective 2016

2a. I searched on google for regulatory changes that came up and then I refined search after this article -  http://www.businessnewsdaily.com/7671-regulatory-issues-changes.html - and then I found a more recent and updated one outlining more of the details - https://www.dol.gov/featured/overtime

2b. This information lead me believe that an opportunity exists because many business owners are not even aware of this change and effects the simple cash flow of a lot of businesses, therefore creating an opportunity to make money for a company and for myself at the same time.

2c. Small business owners would be the most likely customer.  They are the ones it will affect the most because of putting people on salary which will now not be enough to satisfy the new overtime minimum weekly wage amount and will costs these small businesses a lot.  That amount even though it may seem small affects the business owners annual income. 

2d.  I think this opportunity is relatively easy to exploit.  The analysis is not too difficult, but the opportunity is in relation to a short-run need.  Besides the requirements being updated every three years following the December 1^st, 2016 implementation, once the small business have addressed the issue the services are not as marketable after. 

3.  I saw this opportunity because of my job and my mom.  Being a server, and my mom owning her own restaurant, this new regulation is widely mentioned and is a big issue for these owners.  The average bottom line profit to revenues is very small in the restaurant industry at 10%, therefore I know this change in regulations can greatly affect that 10%, which is why I saw an opportunity to help this regulation not decrease that 10%.  

Regulatory Change

1.Train Retirement Advisers (in the form of a consulting firm or something similar)

2a. After searching google for regulatory changes I found this http://www.naifa.org/advocacy/federal-issues-positions/fiduciary-(retirement-accounts)   

2b. This information leads me to believe that an opportunity exists because if there are new responsibilities for retirement advisors based on their legal classification and duties to the individual customer, companies will get hurt if these rules are not known by the advisor.

2c. Medium to large corporations I see as most likely customers because the if they do not follow the new rules that will be implemented shortly there can be vast repercussions.

2d. Personally, I think this opportunity is a little difficult to exploit because many companies have their own advisory departments and human resources departments, which are usually responsible for addressing these changes.  So, the market would have some extreme barriers to entry if pursued.

3.  I saw this opportunity because there have been many issues concerning ethics in the past revolving around the financial industry.  Therefore, I believe there needs to be extensive teaching towards preventing such issues in the future, such as combating against this new rule concerning financial advisers through teaching them about the law and the proper ethics needed.    

Economic Trend

1.Unmet need – low household cash flow

2a) I found this opportunity through simply browsing the internet concerning economic trends in 2016.  http://www.forbes.com/sites/brucemccain/2016/01/03/five-key-economic-trends-to-watch-in-2016/#4daabb0c5f17

2b) Well the second one is concerning a trend that consumer spending will fuel economic growth and should.  Reading into the details, it mentions that household cash flow is not keeping pace with consumer spending.  This spending is increasing faster than savings, which could reverse this positive economic outlook.  Therefore, I see an opportunity to educate and help households increase their cash flow.

2c) I think middle class families are the prototypical customer because they have the money to pay for such a service, if offered by a bank or some type of consulting firm.  I think it could target low income families, but then the question that comes into play would be what is the trade-off from a business perspective between the cost and return based on the information given. 

2d) I think this opportunity is slightly on the more difficult side to exploit.  To me, the difficult part involves getting everything started and setup.  This is because of the regulations and other tings relating to this unmet need.  Also its based on the basis of solving this problem, in conjunction with the economic trend mentioned in the article.  If the economic trend doesn’t exist, I question the need for the business still. 

3. I saw this opportunity because I like to help people.  I am fortunate for what I have, but a lot of other people do not have the same learned knowledge or opportunities I have been presented with.  Therefore, I want to help people succeed and not face the same troubles I have faced.  Also I work in the service industry, where the individual workers range from all socioeconomic groups.  They come to me for advice, so why not make them better off by increasing their household cash flow.   

Economic Trend

1. Unmet need – finding skilled workers

2a. I was searching for economic trends of 2016.  I originally wrote it down and then found another article on about issues of finding skilled workers.  http://money.cnn.com/2015/08/07/news/economy/us-economy-job-skills-gap/

 2b.  With there being issues in finding skilled workers, production and productivity of companies change and even decrease.  If companies cannot find skilled workers to do a job, then who is going to do it.

 

2c. Corporations are the most likely prototypical customer.  They are the ones in need of skilled workers especially in larger quantities. 

2d.  I think this opportunity would be in middle to exploit.  There is some competition with established head-hunting firms, but if there is still an issue today after most of these firms have been around for over 10 years then it can be exploited.

3.  I saw this opportunity because my girlfriend recently was job hunting herself after just graduating this spring.  She was contacted by a head-hunter to possible be contracted to do some financial analyst work for Deutsche Bank.  It wasn’t what she wanted to do, but it made me think of providing a similar service when I came across this economic, except executing more efficiently gearing towards the individuals needs better.