Changes in technology

A change in technology means new tools, machines, software or materials become available, or existing ones become cheaper and more capable. When that happens, it can create an opportunity for a new business idea, because a product or service that was impossible or too expensive before can now be made, sold or delivered.

New products and services

Technology opens up ideas that could not have existed earlier. A two-person physiotherapy practice, for example, can now offer video appointments where the patient wears a cheap movement sensor at home. The physiotherapist watches the shoulder exercises live, and the sensor records how far the arm moves, so progress is measured without a trip to the clinic. The service needs a video platform, low-cost sensors and secure storage of the data. None of these were within reach of a small business a generation ago, so the idea is genuinely new rather than a copy of a local clinic.

New ways of meeting customer needs

The customer need often stays the same; technology changes how a business meets it. People who work long hours still want their dog walked. A dog-walking firm can now fit GPS-tracked collars and use an app that sends the owner a map of the route, a photo and the time of the walk. The need is unchanged, but the business meets it more conveniently and wins the trust of owners who would otherwise worry, so it can charge more than a walker who simply leaves a note.

Technology creates the opening, but it does not make the idea succeed on its own: as the owner of a new business you would still need to check that enough customers want the service and will pay a price that covers the new equipment. The same change can also work against a business, because new technology can make an existing product obsolete.