On every problem, an opportunity
There are a many ways someone can react when faced with a problem. One of them is to get it resolved and obtain all economic benefits you can from solving it.
Traveling through the countryside of Brazil a couple of weeks ago, I visited this rural area which was plagued by unlicensed drivers, most of them rural workers who were substituting traditional ways of commuting with inexpensive motorcycles. Interestingly, these days it has became cheaper to buy and maintain a motorcycle, than to feed a horse.
The local policing capacity was overstretched trying to keep roads clear from unlicensed drivers. The small local jail was getting filled with hard working people who were just trying to drive from the farming area to their homes in the city. As you can imagine, this was also becoming an inconvenient problem for the city’s citizens and politicians.
Finding a solution
Then, a smart businessman seeing all this situation unfold before his eyes indentified a unique business opportunity. Tired of hearing complaints from villagers and from seeing so many unlicensed drivers being arrested, he realized this was an untapped market that was not being properly addressed.
Instead of joining the choir of complaints, he decided to act and immediately opened up a driving school for farm workers at an intersection of two major gravel roads that led to the city. He structured his preparation course in such a way that the worker could do all his/her lessons at dusk, when they were heading back home. He priced it in a way that anyone would be able to afford it, financing it in several small installments. Each student would take theoretical lessons and practice his driving skills before the actual public exam, getting ready for it in a relatively short period of time. He created small groups of people who could study together and support each other through the program.
Driving schools were typically in the city. Driving lessons were expensive and scheduled in a way that would be very hard for anyone working on a farm to attend. These schools were also attended by city people – who were quite intimidating for some farm folks. Up to this point of time in that region, no one thought these country folks were potential customers.
Thinking strategically
The businessman knew his target customers very well. His driving school would not only minimize a social problem, but also boost the confidence of many people who were being completely disregarded as customers.
His customers did not read newspapers or watch TV. With a focused approach in mind, he decided to spread the word in gas stations across the city and to do some limited advertising on the local radio in the early hours of the morning, when all his potential customers were preparing to leave their homes.
The result was an overwhelming success. There was not a single farm worker in the entire region that did not know about the new driving school. Each of them was keen to get their license. I had the unique chance to speak to one of these workers and learned that he wanted to comply with the law from day one, but never had a real opportunity to go a driving school. He really valued the product he was purchasing.
Learning to look for opportunities
From a strategic point of view, this is a story of a businessman who hit his market dead on. From a recurring problem, he was able to identify a niche and develop a winning solution. It does not get better than that.
Whenever there is a problem, there is a need. With a need, there is a market. When you see a problem, think about the benefits you can derive from solving it.