(b) Why is trendspotting important for the success of any business? Explain the four ways in which an entrepreneur spots trends.

Question

Accepted Answer

**Trend spotting** means identification of new trends. It is important for the success of any business because it helps the entrepreneur understand the market and produce goods or provide services in sync with the market trends. One of the keys to business success is to anticipate what the market will want or need before the entrepreneurs are aware of it themselves — and since it is unlikely for an entrepreneur to see into the future, the best way to do this is to become a trend-spotter.

The four ways in which an entrepreneur spots trends are:

1. **Read trends** — Entrepreneurs regularly read the leading publications and websites affecting their business, including industry publications, trade association sites, major newspapers, key business magazines, thought leaders and influential bloggers. They use tech-tools like RSS feeds, e-mail newsletters, websites and forums to stay on top of the information they want, and quickly learn which sources are valuable.

2. **Talk trends** — They get involved in their industry's trade associations and attend events both online and offline. They talk to customers and prospective customers, use social media and online surveys to learn what customers are thinking, buying and craving, and identify key influencers and trendsetters through social network websites and forums. They also pay attention to ratings and review sites, including what customers say about competitors' businesses.

3. **Watch trends** — They regularly go where their target customers hang out — the local mall for teenagers or 'power lunch' restaurants for business people — and simply watch and observe what people are eating, doing, wearing and using. Trade shows are a great place to get trend ideas, even when they are not looking to buy.

4. **Think trends** — As entrepreneurs gather information regularly, they develop a 'trend-spotter mind'. Absorbing and mulling over what they have read, heard and observed, they make connections that lead to business-boosting insights — for example, news about rising shrimp prices, queues at an Asian-fusion restaurant and a customer's comment together suggest a new menu item, a new product line or even a whole new business.