One opportunity that I have located in regard to economic trends involves the housing industry. I found this opportunity through several media outlets that have raised the concerns. The opportunity that exists is in homeowner financing. In Sacramento for instance, over 52% of people rent their homes. This has resulted in unpopular rent control laws and unhappy people. If there were an institution in place that could assist people in getting them into homeownership without requiring a significant down payment and fees, it would likely be a success and have a country-wide positive effect. I believe the information that I have found suggests an opportunity may exist because of the statistical evidence behind it. The prototypical customer in this instance would be anyone who does not currently own a home and wishes to. I believe this opportunity would be relatively easy to exploit because a large number of people would benefit from it, however it may be difficult to set up. I see this opportunity because I have done work in real estate and am knowledgeable on the difficulties of purchasing a home, from large down payment requirements, hefty closing costs, and immaculate credit scores to get approved for a loan. Now more than ever, people are renting, and homelessness numbers have increased, resulting in disliked laws and procedures in the world of real estate.
Another opportunity that I have located in regard to economic trends involves companies and their current tendencies to hire less full-time workers. It is very common for companies in this day and age to hire part-time employees in an effort to keep overhead low, to remain flexible, and to stray away from paying employee benefits. However, this is causing a problem as hard working students with higher level degrees are finding it more difficult to find full time careers right out of college, and equally as important are having to pay extraordinary insurance expenses out of their pocket. An opportunity that I believe exists is in creating a more affordable insurance company for students with degrees that cannot find full-time jobs with benefits included. I found information regarding this topic through personal experience, as my three older sisters have college degrees and two do not currently receive benefits from their jobs. Any graduate student who does not receive benefits from their job would be a prototypical customer, and this opportunity would be relatively easy to exploit as many graduates would benefit from it. My personal experiences involving my sisters and their situations helped me locate this opportunity.
An opportunity that exists in regard to regulatory changes is in the small business world. Government rules and regulations have made it tough on small businesses to actually run their businesses. An opportunity that exists would be in a platform that lays out the regulatory policies that small business owners must follow in a condensed and easy version. I found this opportunity through a business report article and believe the information within it support my idea because it makes it out to seem like small businesses often times have a tough time keeping up with government regulations that are constantly coming about. The prototypical customer is any small business owner and the opportunity is relatively easy to exploit as many small business owners are too focused on keeping up with regulatory changes as opposed to running their own businesses. I know a lot of small business owners and they all gave me insight to the constant regulatory changes, which made me form the belief.
Another opportunity that I see existing in regard to regulatory changes is in regard to Airbnb. Many real estate investors have explored the opportunity of renting through Airbnb; however, regulations are arising prohibiting renting through Airbnb in certain areas. Much of these regulations are in concern with neighbors who wish not to have new people coming in and out of their neighborhoods every day, especially ones whom could cause disturbances. A solution to this problem could come in the form of a renting platform that ensures the people renting are credible and have no previous track record of causing disturbances in the past. This would result in the loosening of regulations, benefitting investors and those who wish to rent their homes while on vacation to cover expenses. I found this information in several articles and by watching the news, taking notice of the widespread information that is being posted on the recent breakthrough of Airbnb. I believe the information stated supports my idea as disturbances amongst neighborhoods seem to be the biggest factor in these regulations, resulting in difficulties for anyone looking to rent with more flexibility through Airbnb. The prototypical customer in this case would be Airbnb users and renters. My friend is a full-time Airbnb host, which gave me more insight to the regulations regarding Airbnb renting and how the issue may be solved.
Hey Jacob!
ReplyDeleteI completely agree with your second opportunity. I feel like having an affordable, student-focused insurance company would make a huge difference in the way that people right out of college enter the work force. I feel like it would be extremely easy for a company like this to make money because of the huge market, but I can also see how it would be difficult to set up.
Hi Jacob,
ReplyDeleteI found your last regulatory trend most relatable and interesting, especially because I never really thought about how the neighbors of people that rent their house as an Airbnb are affected. Checking on previous track records is helpful, but I also think it'd be helpful for residents looking into moving into these neighborhoods know beforehand that these houses get rented out as Airbnb's, just so they're aware upon moving in. I can see how this would be a difficult opportunity to exploit, but definitely achievable if really worked on.