1)
Economic Trend: More cities are building fewer
new homes. More new homes being built are for larger families. All of this with
the decline of the traditional family unit (i.e. family sizes are getting
smaller).
A product is being developed that
doesn’t quite meet the upcoming demand. We can account for that difference and
profit off other’s miscalculations. The average household (as long as they are
averaging to be smaller than today) would be the prototypical customer. The
opportunity is relatively difficult to exploit because it requires being able
to make new real estate development, which is a very specialized field that
requires years of experience. Maybe we can invest, but we’d have to find an
appropriate real estate developer.
I’m currently taking the graduate
level Intro to Real Estate and these sort of trends is exactly what we are
being taught to capitalize on.
2)
Economic Trend: Domestic manufacturing
production has decreased, purchasing manager sentiment is down, and private
inventory supplies are down.
Really
any economic trend can be an investment opportunity. This is where I differ
from the assignment, in that it’s not an unmet need but an investment
opportunity. The most likely customer would be us as investors. It’s hard to
say whether it’s easy or difficult, because its dependent on risk tolerance of
the investor. It’s easy to short relevant asset classes and hold off buying
investment assets until after some economic turnmoil takes place when you have
the conviction to do so.
I
am going into a market analyst role right after college and I am constantly
thinking about investment opportunities from macro trends. This is a natural
thought process for me by now.
3) Regulatory Change: General Data
Protection Regulation: stricter regulations on companies to make sure sensitive
data isn’t breached
There
is obviously an increased need to have specialized ability of protecting
consumer information within European markets. Multinational corporations would
be the only prototypical customer. The opportunity is extremely difficult to
take advantage of because it requires a dynamic solution that changes as
corporate hackers evolve new techniques of acquiring sensitive data.
This
stems from my belief that with enough effort we can do anything. Like the need for
a service like this is there, it just reuires making the right team.
4) Regulatory Change: The banning of
flavored vaping products
This
sort of change immediately affects a bunch of product supply lines that can
easily be repaired. The prime customer would be vape producer, smoke shop
owners, and people who vape. It wouldn’t be too difficult to implement some
sort of supply chain repair, as long as the proper research goes into how to
safely fulfill the customer’s need.
From
my personal experience with people with nicotine addictions, they don’t really
care the negative side effects and simply want their nicotine fix.
I liked how detailed your breakdown of each opportunity was, evaluating the who, what, and why. The last regulatory change caught my eye, because I also addressed an opportunity regarding the banning of flavored vaping products. It seems to be a very common topic, as recent health concerns regarding vaping have drawn attention, and therefore led to the implementation of these bans. Overall, great job of organizing and discussing each opportunity.
ReplyDeleteHi Mitch,
ReplyDeleteIt's interesting that family sizes are getting smaller, so people aren't that interested in buying houses. Instead, they are renting. I thought it would be relatively easy to exploit this trend if you do have money to invest. The reason why I think it is easy is because I see apartments getting built everywhere. I liked reading all of you other opportunities as well. Nice job!
I love that real estate trend you caught. I have no practical knowledge myself, but I've always been loved the idea of it. I feel like with a good amount of experience it can be a great side hustle if you save enough money for it. My dad was a manager of many properties for this really rich guy he knew, so I would often help him fix up places so they could be sold or rented. I'd love to take a class like what you're taking at UF some day. What's the name of it?
ReplyDeleteThe analysis of each opportunity was very detailed and painted a clear image of alertness that you have for entrepreneurship. The houses trend especially was a nice touch because of how houses are generally regarded as a place for settling down rather than moving about.
ReplyDelete