One of my favourite TV shows is The Big Idea with Donny Deutsch, an entrepreneurial programme broadcast on CNBC. In the light of the severe financial crisis bedeviling American businesses, Deutsch recently explained that he had to temporarily change the format of his show from showcasing entrepreneurship to discussing the economy.

There definitely are tremendous challenges now facing large and small enterprises. However, I wonder if Deutsch was completely correct in his declaration that the entrepreneurial spirit was forced to become dormant due to consumers’ lack of confidence and their consequent refusal to spend as customary.

It has been said that big opportunities are born in times when there are great challenges. The test of a true entrepreneur comes when he or she can ignore the prevailing darkness of despair, and focus on the light of possibility.

This is easier said than done, as it takes tremendous strength of mind to keep a positive outlook in the face of overwhelming negativity.

The Jamaican spirit

Many Jamaicans are blessed with entrepreneurial determination, as we love to take advantage of any situation to make a quick dollar. Take the case of tropical storm Gustav which roared through the island and wreaked destruction earlier in 2008. The average person would have focused on the problems it brought, but the entrepreneurial-minded among us saw profitable opportunities.

When the eastern side of Jamaica was cut off due to the collapse of the Harbour View Bridge, a situation of crisis proportions ensued. Persons had no way to cross over the Hope River to get into Kingston for work, shopping, or medical emergencies. Some enterprising folks seized the day and decided that they would transport the public with the only vehicles they had access to- themselves.

The pictures of determined men skillfully navigating the treacherous waters with people and goods carried on their backs were inspiring. Other entrepreneurs took the business to another level by supplying on-the-spot foot washing services. Here were people who truly appreciated the free enterprise system. Without the benefit of business school or an MBA, they understood that the simple key to making money was to solve people’s problems.

People + Problems = Profit Possibilities

If we are faced with a reality in which lots of people are facing lots of problems, then it stands to reason that we are living in a time laden with lots of opportunities. People will not suffer for long without seeking solutions to their problems.

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Anthony Robbins, international speaker and bestselling author of Unlimited Power, declares that people’s primary motivators are pleasure and pain. The avoidance of pain can actually be a stronger driving force than the desire for pleasure; in fact most people will pay almost anything for products and services that can bring relief from their pain.

Smart entrepreneurs need to keep their eyes open for opportunities to fix people’s problems and make money in the process. It is true that large, established businesses which are set in their operations may find it difficult to jump at these breaks. The good news is that this opens up the playing field for smaller, enterprising entrants who can take the lemons of life and not only make lemonade, but set up a profitable lemonade stand.

For example, the current wave of fear for our personal safety from marauding criminals has opened up the opportunity for entrepreneurs to take charge and offer services and products that may provide relief. There is at least one Jamaican company that offers a personal GPRS tracker which allows people to trace the location of their loved ones using mobile phone technology, while other quick thinkers have advertised training in self defense. It’s just a matter of time before mace sprays, personal alarms, and other security products become must-have items.

Become a better problem solver

Money-making prospects don’t only arise from dramatic challenges. Very often there are existing services and products that are not really meeting customer’s needs, and in some cases, actually cause more problems. If you can solve problems by doing what other people can’t or won’t do, then you can be in the money.

Let’s use the mobile phone for example. Many Jamaicans have more than one handset on different networks. Two years ago I became annoyed that I was walking around with two phones, when what I needed was one instrument with two sim cards. I began to search online for a phone that I didn’t even know existed. I was pleasantly surprised when I discovered that enterprising Jamaican business owners were thinking like me and had imported the solution to my problems. Needless to say I was early in line to get my own dual sim phone.

If you’re looking for issues to solve, why not start with your own? Many times we can easily think of ways to improve our own problems, but we wonder why someone else doesn’t provide the solution. Others might be suffering from the same difficulties you have. If you can fix the problem for many people, then you may have successfully turned your problem into profit.

Copyright © 2008 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, November 20, 2008

Cherryl is a financial consultant and coach, founder of Financially S.M.A.R.T. Services. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Contact Cherryl