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Business Opportunity Identification and Selection

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Lavanya Khemani
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101 views22 pages

Business Opportunity Identification and Selection

Uploaded by

Lavanya Khemani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Business Opportunity

Identification and Selection

Presented by:

Prof. Bhushan Manchanda


Who is an Entrepreneur ?

An Entrepreneur is a person who organizes


and manages a business undertaking,
assuming the risk for the sake of profit. Any
person who starts and operates a business
is an entrepreneur.
Major Aspects of Entrepreneurship

1.The identification of market opportunity and


the generation of a business idea
(product or service) to address the
opportunity.
Major Aspects of Entrepreneurship

2. The gathering and commitment of


resources in the face of risk to pursue the
opportunity
Major Aspects of Entrepreneurship

3. The creation of an operating business


organization to implement the opportunity-
motivated business idea
Successful Entrepreneurs
 Drive

 Thinking Ability that encompasses creativity,


critical thinking, analytical abilities and originality

 Aptitude for Human Relations

 Communication Skills

 Technical Ability
OPPORTUNITY RECOGNITION

 What is an opportunity?

 How do you recognize


opportunities?

 How do you screen opportunities?

 What is a business concept?


OPPORTUNITY RECOGNITION
Opportunities are situational

The Window of Opportunity

Opportunities take form in real world conditions



Changing conditions

Leads and lags

Knowledge gaps

Chaos and/or confusion
The Entrepreneurial
Process Decide to go into business of own self

Assess your potential

Find an appropriate product or service idea

Buy a iness Start a new business Acquire a franchise


bus

Conduct a feasibility study

Technical asibility Market acceptability Financi l viability


fe a

Organize your business structure and legal requirements

Protect your idea

Arrange the necessary financing

Develop a comprehensive business plan


What is Your Entrepreneurial Potential?
Realistically assess your potential
for an Entrepreneurial
Career

Understand the Understand


personal the demands Evaluate Conduct a
attributes the your personal
important for entrepreneuria managerial financial
success in a l role will skills assessment
business of your make on you
own and your
family
Develop a Develop
personal a
balance personal
sheet budget

Assess your strengths and


weaknesses that will affect your
ability to achieve your
entrepreneurial goals
Searching for Ideas
Search for a product or service
idea

From your From From a


From
previous casual delibera
hobbie
employme observati te
s
nt on search

Product
Magazines Trade Governme Use
licensing
and other shows and nt creativ
informati
agencies e
on
publicatio convention and thinkin
services
ns s department g
s
Evaluate the possible alternatives

Determine your preferences


How to Select the Right Opportunity

Step 1:Identify Your Business and Personal


Goals
Step 2:Research Your Favourite Industries
Step 3:Identify Promising Industry Segments
Step 4: Identify Problem Areas and Brainstorm
Solutions
Step 5:Compare Possible Solutions with Your
Objectives and Opportunities in the
Marketplace
Step 6:Focus on the Most Promising
Opportunities
Characteristics of the “IDEAL”
Business
 Requires no investment
 Has a recognized, measurable market
 A perceived need for the product or service
 A dependable source of supply for the
required inputs
 Requires no labour force
 Provides 100% gross margin
 Buyers purchase frequently
Characteristics of the “IDEAL”
Business
• Receives favourable tax treatment
• Has a receptive, established
distribution system
• Has great publicity value
• Customers pay in advance
• No risk of product liability
• No technical obsolescence
• No physical perishability
• Impervious to weather conditions
• Possesses some proprietary rights
Market Issues
 What products or services are you selling?
 To whom do you sell?
 Does someone represent you or distribute your
products or services?
 How do you promote sales?
 How do you price your output?
 What do customers expect?
Focus for Successful Marketing
 4 P’s of Marketing Mix

 NPD

 USP

 Push Vs Pull Strategy

 STP-Segmentation, Targeting, Positioning


Finance Issues
 Debt-Equity Ratio

 Taking fund from VC, Loan or


Equity

 Working Capital Issues- Study on SMEs

 Risk Management/Hedging
Sources of
Financing
How will you finance your
business?

Loans and
Credit Government
Personal mortgages from
from assistance
savings banks, credit
supplier programs
unions and
s
others

LBO Equity
capital Leasin
from g
private
sources
Local
Friends Prepare loan or
professionals
and grant request
and angel
neighbour package
investors
s

Venture
Employee
s
capitalis
ts
Advantages of Successful
Entrepreneurship

You are your own boss


Enjoy the profits from you efforts


Sense of pride in your business


Flexibility in your work schedule
Prof. Bhushan Manchanda

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