STARTING A BUSINESS

“My basic strategy is to stick to my core business, and to my area of expertise. Together they
create synergy.”
- Henry Sy, Chairman, SM INVESTMENTS
--------------- Identifying Business Opportunities(SOURCES) ---------------
The identification of business opportunities is central and key starting a business. Generally, an
Entrepreneurial opportunity is a favorable set of conditions that will enable the Entrepreneurs
to create new products or services by combining resources that will result, not only to a profit,
but for the common good of the society and the environment.
Recognition process towards environmental trends:
1. Economic 2. Social 3. Political & Regulatory
disposable income, demographic changes(holidays, trend, government support
consumers spending gender), age, civil status, people’s services, sets of new
pattern thinking(sumo) laws(no plastic = ecobags)
The potential sources of opportunity are the positive attitude of the Filipino workers, low labor
cost, literacy of the workforce, large market potential because of our big population size,
changing preferences and lifestyles of Filipino consumers, abundance of natural resources, and
availability of competent middle management and creative technical talents.
Sources of Situations
Opportunity
1. The Opportunities can be found when situations and events are
unexpected unanticipated. The event might be an unexpected success / good news or
unexpected failure / bad news that can be an opportunity for
Entrepreneurs to pursue.
2. The Incongruous situations happen when there are II. EXPERIENCE
incongruous inconsistencies in the way they appear. For example, there are
opportunities to capture when conventional wisdom about the way
things should no longer hold true. In these types of situations,
entrepreneurs who are willing to think beyond the traditional approach
may find a potential opportunity. (uber = practicality, private
transportation)
3. The process Entrepreneurial opportunities could also surface throughout the process
need of discovery such as the process of research and development done by
the researchers and technicians of a product or service. Even before a
breakthrough, there will be numerous opportunities which could be
seized by Entrepreneurs during the process. (boom of the internet sector
during 80’s-90’s)
4. Industry and Changes in technology, social value and customers’ tastes can change the
market structures structure of an industry and market. These situations, however, will give
Entrepreneurs opportunities to innovate their product or service. (apple
earned social value + dictated how phones should look like)
5. Demographics Changes in demographics will influence industries and markets, upon
 their target market and market segmentation. There can be
Entrepreneurial opportunities in anticipating and meeting needs of the
population.
6. Change Perception is one’s view of reality. Changes in perception get to the heart
of people’s psychographic profiles of what they care about. Changes in
these attitudes and values create potential market opportunities to alert
Entrepreneurs,
7. New New knowledge can be a source of opportunities for Entrepreneurs.
Knowledge Examples of new knowledge are new technologies and new discoveries
that can be sources of information for Entrepreneurial innovation.
Entrepreneurs who come out with new products can manipulate this
kind of knowledge.

Something to ponder:
1. “Generally, there will be a life event, key motivator or a source of inspiration that causes a
person to work on their own rather than work inside a bigger firm.”
2. “Entrepreneurship is the pursuit of opportunity without regard to resources currently
controlled.”