Okay so we have all heard of that player the Toronto Raptors drafted (Bruno Caboclo). The reason why the Raptors took Bruno is because they are building a Basketball club from the ground up and grabbing young players they can develop for the future. You can also do this with your team as well and the following are some examples:

Coaching a High School Team:
This only works if your the Senior team coach. As the senior coach you can scout out the top 2 grade 9's and 10's and you can start to develop them to how you see them fitting into your team. This means giving them workouts, skill development, and practicing with the senior team. By having more competition and a higher level of skill development your younger players will improve much more than they would any other way. 

Club Team Coach/Operator 
As a club executive and/or head coach you probably want to see your players develop much more than other clubs. 

Club Executive:
As a club executive you can run camps like the Oakville Venom and CIA Bounce (here in Canada), they run camps with high level college/university recruiters attending, and high level Basketball coaches and trainers to teach the players. One of the best programs I have seen was down in Florida when I was visiting this past winter (name of program has escaped me currently). The organization had one team per age group and each and every player in the organization had a one on one Basketball training session every week. 

As a Basketball coach/executive you should be looking into the future of your program for sustainability and also for future competitiveness. 

One more thing worth a mention, back when I was in grade 8 in Burlington Ontario all of the bigger high schools would recruit the grade 8's. If you are a head coach for a large high school, you may be able to scout out potential grade 8 players and try to lure them to play for your program. 

There are many ways of finding potential talent and there are three ways I personally find potential talent. 
  1. Other Sports: What other sports is the player playing and will this sport help the players Basketball skills? Some examples of this would be Soccer and Volleyball. Soccer players are notorious for being really great defenders and they never get tired, while Volleyball players know how to jump which is good for just about everything. 
  2. Size of Player: My second year coaching I had a team of grade 8's, there was a 6'4 player who my assistant coach didn't want me to take because he was not able to shoot too well, and was not aggressive, but I did take him after all. This player learned how to shoot with me, and played really good defence (surprise), he is now a grade 12 and ranked top 15 in Canada(oh and he is 7 feet tall). 
  3. Will The Player Fit In: What I mean by this is, what does your team need, and does he do what your team needs? My fourth year coaching I coached a grade 9 team who desperately needed a point guard who could handle the Basketball. One day after tryouts and before the first practice I seen a player playing in the gym who shot like a grade 4 but handled the Basketball like a grade 10 (he was a grade 8) so I told him he made the team if he wanted to play. So this player played the year older age group for my team and seemed fine up until the first practice which is when he was too nervous to dribble the ball against the older players. This is when I taught the player to shoot the Basketball, he improved to the point where he became the starting shooting guard and we even ran plays specifically made for him (best game 6/7 from the three).