Once you know your market, you will be well positioned to recognise any emerging needs for a particular new type of product or service.
Perhaps customers want a product that no competitor currently provides. Alternatively, customers may already be buying the products but require a variation with special features, or it may be that existing products require accessories.

These are all gaps in the market and may well be opportunities for you to expand your business.

Undertaking a gap analysis can be a formalised research approach - but this is not always necessary. Many gaps have been found by accident or through identifying an unmet need. Here are some steps to get you on the 'gap identification' path.

• Pick the brains of customers, both yours and your competitors', for new ideas.
• Keep up to date through the media for market gaps that entrepreneurs have discovered overseas or in a different state. Can you clone this gap for your own area?
• Always be on the lookout for innovation. Ask yourself what kinds of problems you could address. What needs are not being currently met?
• Pay close attention to new and emerging technologies that could allow for opportunity.
• Look for potential needs created by new legislation and regulations.
• Keep alert for ignored opportunities. Ideally you want to identify a niche within the market. Are there new ways to deliver a service or product?

You may also like to try the interactive activity 'Matching services to needs' and the practical activity 'Filling market gaps'.