What is a window of opportunity?
A window of opportunity, or critical period, is a short window of time for the desired action to happen or a decision to be made. Once the period passes and the window closes, the chances of seizing the opportunity become smaller or are potentially lost forever. No matter the action or decision, the chance to do something must be taken advantage of rapidly. Critical periods are standard in real estate, finance, mergers and acquisitions, and business exchanges.
Companies turn to project management software to better plan for and predict when a window of opportunity may present itself. These tools give organizations the chance to be ready ahead of time to act fast when they occur.
Examples of a window of opportunity
Some examples of a window of opportunity in business include:
- Offering a limited time deal to customers at the end of the fiscal year before they lose the remainder of their budget for the year
- Marketing a seasonal product and capitalizing on the seasonality of timeframe
- Making another attempt to sell a product after previously being turned down following changes in leadership and decision-making authority within the business
- Bringing new technology to market before competitors release similar technological advances
Benefits of a window of opportunity
The specific benefits of a window of opportunity will depend on the situation and what it applies to. In general, there are some common benefits of these windows in sales and business, including:
- Break into a new market. When acted upon before the window closes, a business could potentially use a window of opportunity to break into a new market. Companies can then discover and enjoy participating in a new market before competition arrives.
- Grow a business. When a critical window is used as leverage, it allows a company to grow. New growth can lead to increased revenue generation and new business activity.
- Value add for customers. If used wisely with the customer in mind, a window of opportunity can create additional value add for customers.
- Meet demand by solving a problem. Similar to adding value for customers, a critical window can be taken advantage of to create solutions to customer problems. Solving direct problems allows businesses to plan for demand and encourages customers to take advantage of proposed offerings.
Factors of windows of opportunity
Windows of opportunity aren’t always based upon the same factors. Many factors come into play when considering a window of opportunity, including:
- Timing: The length of time for each critical window varies depending on the full range of the situation. In some cases, the critical window may be known. For example, in a sales deal, a prospect may indicate that they will be selecting a vendor to work with over the next week, which means the seller has a week to seize the opportunity. In other cases, the critical window may not be as easy to determine, such as in a life-saving medical emergency.
- Costs: Failure to achieve the desired outcome during the critical period could lead to increased costs over time, whereas seizing an opportunity could reduce costs in the long haul, depending on the given situation. Costs to act may also impact a business’ ability to take advantage of a window of opportunity before it closes.
- Automation: When dealing with an unpredictable window of opportunity or poorly known timing, automation can help businesses take advantage of the period. Algorithmic trading, used by investment banks and hedge funds, is one example of an automation method to take advantage of a window of opportunity.
How to spot a window of opportunity
In order to seize a window of opportunity, companies need to know how to spot them. Here are three general tips and tricks for doing so:
- Check the market. Learn and understand what’s already available out in the market and where potential gaps might lie. Think beyond equivalent competitor offerings and pay attention to all products and services in an industry market space. Check back often and regularly to see what’s out there.
- Understand the product. Knowing a product inside and out is the best way to identify golden windows associated with it. Learn its features and speak to the results and outcomes it delivers.
- Know the competition. Conduct a competitor analysis to learn about other companies in the space and why they're in competition. Get to know competitors’ offerings, products, and prices to understand the industry at length. Pay attention to what competitors aren’t doing to fill gaps in their services and offerings.
