Chapter 2

Identifying
Opportunities and
Generating Ideas

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 Agenda Of the Week
Recognizing opportunities and generating Ideas
Ways to identify Opportunities
Finding GAPS
Techniques for Generating Ideas
Process of Generating Creative Ideas

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 What is An Opportunity?

An opportunity is a favorable
Opportunity Defined set of circumstances that
creates a need for a new
product, service or business.

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 What is an Opportunity?

An opportunity has four essential qualities

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 Three Ways to Identify an Opportunity

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 First Approach: Observing Trends
Observing Trends
Trends create opportunities for entrepreneurs to pursue.
The most important trends are:
 Economic forces.
 Social forces.
 Technological advances.
 Political action and regulatory change.
It’s important to be aware of changes in these areas.

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 First Approach: Observing Trends

Environmental Trends Suggesting Business

or Product Opportunity Gaps

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 Trend 1: Economic Forces
Example of Economic Trend
Creating a Favorable Opportunity
Economic trends help
determine areas that are • A weak economy favors
startups that help consumers
ripe for new startups and
save money.
areas that startups should
• An example is GasBuddy.com,
avoid.
a company started to help
consumers save money on gas.

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 Trend 2: Social Forces

Examples of Social Trends

Social trends alter how
people and businesses
behave and set their • The increasing diversity of
priorities. These trends the workplace.
• Increasing interest in health,
provide opportunities for fitness, and wellness.
new businesses to • New forms of music and other
accommodate the types of entertainment.
changes.

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 e.g Sony Walkman was developed not because
consumers wanted smaller radios but because people
wanted to listen to music while on the go

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 Trend 3: Technological Advances
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Examples of Entire Industries

Advances in technology that Have Been Created as the
frequently create business Results of Technological
Advances
opportunities.
• Computer industry
• Internet
• Biotechnology
• Digital photography

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 Trend 4: Political Action and Regulatory
Changes
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General Example
Political action and Laws to protect the environment
regulatory changes also have created opportunities for
provide the basis for entrepreneurs to start firms that
opportunities. help other firms comply with
environmental laws and
regulations.

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 Second Approach: Solving a Problem
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Solving a Problem
Sometimes identifying opportunities simply involves
noticing a problem and finding a way to solve it.
These problems can be pinpointed through observing
trends and through more simple means, such as intuition,
chance, or change.

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 Second Approach: Solving a Problem

•Example
• A problem facing the U.S. and
other countries is finding
alternatives to fossil fuels.
• A large number of
entrepreneurial firms, like
this wind farm, are being
launched to solve this problem.

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Third Approach: Finding Gaps in the Marketplace

The gap in the market is a Specific Example

specific area. An area
In 2000 Tish Ciravolo realized
where you can dominate. If there were no guitars on the
you succeed in finding a market made specifically for
niche where you are the women. To fill this gap, she
only one, it is great for started Daisy Rock Guitars, a
your entrepreneurial company that makes guitars just
for women.
career.
 Finding GAPS In the Market
Here are six ways you can identify a gap in your
market:
Monitor Trends in Your Area of Expertise. ...
Bring about Feedback from Customers (and Listen to it!)
..
Evaluate Competitors' Offerings and Differentiate
Yourself.
Think Globally. ...
Adapt an Existing Product or Service. ...

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 Techniques for Generating Ideas
1) Social Listening
Social Listing is the method of getting a public opinion to
generate ideas that fix the problem.
(Using the social media platforms like Facebook, Twitter,
and Instagram).
2) Brain storming
Brainstorming is a technique that involves a single person
or 5 to 10 people to give different suggestions on a specific.
Even blending one or more ideas could solve the problem.
3) Mind Mapping
Mind mapping is the famous idea generation technique
that represents the thoughts and ideas in the pictorial form.
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 Techniques for Generating Ideas
4) Role-Playing
You could take up the roles of customers and discuss
your expectations and what you want from products. This
could lead you to stumble upon some good ideas.
5) Forced Relationship
This technique helps to come up with unique ideas. Here you
take two unrelated things and imagine putting them together to
see what new thing you can come up with.
For example, take a calculator and a pencil, these are
unrelated to each other. Now try putting them together. You
might get some interesting ideas like a calculator with a touch
screen and a pencil to write on it and a lot more.
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 Creativity
Creativity
Creativity is the process of generating a novel or useful idea.
Opportunity recognition may be, at least in part, a creative
process.

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 Creativity Process
1) Idea Germination
This seeding stage of new idea
It is the stage where the entrepreneur recognizes that an
opportunity exists
Creative idea germinates besides the interest ,the need of a
specific problem or area of study

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 Creativity Process
2) Preparation
Entrepreneur starts looking for the answer to implement
the idea
If the Idea is to launch a new product or service then
market research is conducted.
3) Incubation
•This is the subconscious assimilation of information
•This the transition period
•The entrepreneur starts thinking in his sub-conscious
mind

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 Creativity Process
4) Illumination
In this period of illumination the idea re-surfaces in
realistic way and entrepreneur comes out with viable
plan to give practical shape by collecting:
i)raw-material
ii)arranging funds
iii)Policy making for the implementation of idea

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 Creativity Process
5) Verification
Also called the validation or testing stage
This is where the idea is verified to prove that it has
value
This is the most difficult phase of creativity as
obstacles begin to appear
This is developing stage in which knowledge is
developed into application

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