OBJECTIVES

 Identify ways to recognize business opportunities

 Explain how to use creative thinking to generate ideas
 Compare various types of business opportunities
 Describe methods used to evaluate business
opportunities

Entrepreneurship: Owning Your Future, 11th ed. © 2010 Pearson Higher Education, 1
Steve Mariotti Upper Saddle River, NJ 07458. • All Rights Reserved.
 Sources of opportunities include:
 Problems. Many well-known companies were started because an
entrepreneur wanted to solve a problem.
 Changes. Our world is continually changing. Change often produces
needs or wants that no one is currently meeting.
 New Discoveries. The creation of totally new products and services
can happen by accident.
 Existing Products and Services. You can get ideas for opportunities
from businesses that already exist by looking for ways to improve a
product significantly.
 Unique Knowledge. Entrepreneurs sometimes turn one-of-a-kind
experiences or uncommon knowledge into a product or service that
benefits others.

Entrepreneurship: Owning Your Future, 11th ed. © 2010 Pearson Higher Education, 2
Steve Mariotti Upper Saddle River, NJ 07458. • All Rights Reserved.
  Challenge the Usual. Ask lots of “Why?” and “What if?” questions.
 Think Backward. Start by imagining the end result you want.
 Be Flexible. Force yourself to examine things from different angles.
 Judge Later. When brainstorming ideas, don’t worry about being
practical.
 Draw Idea Maps. Use whiteboards, chalkboards, and poster boards
to sketch out ideas.
 Brainstorm in a Group. Ask your friends, family, and classmates to
help you generate ideas.
 Daydream. Letting your mind wander is okay; just make sure you
pick an appropriate time.

Entrepreneurship: Owning Your Future, 11th ed. © 2010 Pearson Higher Education, 3
Steve Mariotti Upper Saddle River, NJ 07458. • All Rights Reserved.
 Four common ways to turn ideas into opportunities are:
 Starting a new business
 Buying an independent business
 Buying a franchise
 Becoming an inventor

Entrepreneurship: Owning Your Future, 11th ed. © 2010 Pearson Higher Education, 4
Steve Mariotti Upper Saddle River, NJ 07458. • All Rights Reserved.
 Three methods for determining the feasibility of business ideas are:
 Cost/Benefit Analysis. This is the process of adding up all the
expected benefits of an opportunity and subtracting all the
expected costs. If the benefits outweigh the costs, the
opportunity may be worthwhile.
 Opportunity-Cost Analysis. An opportunity-cost analysis
examines the potential benefits that you forfeit when you
choose one course of action over others.
 SWOT Analysis. This is a business evaluation method that draws
its name from the four areas it evaluates—Strengths,
Weaknesses, Opportunities, and Threats.

Entrepreneurship: Owning Your Future, 11th ed. © 2010 Pearson Higher Education, 5
Steve Mariotti Upper Saddle River, NJ 07458. • All Rights Reserved.