Business opportunities are everywhere as long as there are people with money, and they are

willing to satisfy their needs. However, there are more business opportunities for individuals who are
creative, resourceful and risk-takers because they create opportunities instead of waiting for opportunities
to come. These are the real entrepreneurs.

Entrepreneurial Activities
Business activities are concentrated in cities and other urban communities. The primary reasons
are that more buyers, more incomes and more facilities are located in the said heavily populated areas.
In discovering business opportunities, the following factors or resources have to be evaluated.
1. Market. The number of prospective buyers, the presence of competitors, and the prices and quality
of goods and services has to be analysed.
2. Individual interests. Business interests of individuals vary.
3. Capital. Money is very important in putting up a business enterprise.
4. Skills. The entrepreneur should have the proper skills in the business he is going to undertake.
5. Suppliers of inputs. It is not enough that there are sufficient buyers of goods and services. It is
equally important that there are steady suppliers of raw materials and other inputs of the business.
6. Manpower. The success of any business enterprise primarily depends on the efficiency of its
employees.
7. Technology. Taste and preferences of consumers are not permanent. These are hevily influenced
by innovations. And innovations are the products of technology.
SWOT Analysis
To be able to translate business opportunities into profits, the SWOT analysis is applied. It studies
the financial resources, physical facilities, management capabilities, the market, production process,
information system, sources of supply and social environment.
Strengths – features of the business which allow you to operate more effectively than competitors
Examples:
Unique designs (boutique, garments, etc.)
Skilled personnel
Location
Weaknesses – areas that are capable of improvement
Examples:
Being a new entrant in the market
Lack of skilled personnel
Lack of equipment

Opportunities – areas where the company has the most potential for growth
Examples:
Shift in customers’ preference
High demand in the market
Threats – external characteristics which may be potential sources of failure to the organization
Examples:
Competitive innovation
Increase in cost or lack of supply of raw materials
Linkages of Resources
Enterprises which have established a strong growth future can increase their efficiency or
profitability through backward and forward integration. This is also called backward and forward linkages.
Backward integration is the ownership or control of the inputs of production by the enterprise. For
instance, a poultry business is a heavy user of feeds which consist of a mixture of palay, corn, fish and ipil-
ipil leaves. To ensure a steady supply of feeds at a lower price, better quality of the right quantity, the
owner of the poultry business puts up his own feeds production. This is another business opportunity,
especially if such business in profitable. Thus, he achieves two business objectives: he ensures the
efficiency of his poultry business, and he gets additional profits from his feeds business.

In the case of forward integration, it is ownership or control of the marketing system by the
enterprise. Using the same example, the poultry owner sets up his own distribution system instead of
depending on middlemen to make market his poultry products. In short, the owner and controls the entire
operations of his poultry business, from production of feeds to marketing of poultry products. All the profits
belong to him. The point here is that the entrepreneur can create business opportunities by exploiting
backward and forward integration, aside from ensuring the efficiency of his original business.
Backward and forward integration provides business opportunities to more innovative and
hardworking entrepreneurs.

What Is a Product Life Cycle?

The term product life cycle refers to the length of time a product is introduced to consumers into the market
until it's removed from the shelves. The life cycle of a product is broken into four stages—introduction,
growth, maturity, and decline. This concept is used by management and by marketing professionals as a
factor in deciding when it is appropriate to increase advertising, reduce prices, expand to new markets, or
redesign packaging. The process of strategizing ways to continuously support and maintain a product is
called product life cycle management.

How Product Life Cycles Work

Products, like people, have life cycles. A product begins with an idea, and within the confines of modern
business, it isn't likely to go further until it undergoes research and development (R&D) and is found to be
feasible and potentially profitable. At that point, the product is produced, marketed, and rolled out.
As mentioned above, there are four generally accepted stages in the life cycle of a product—introduction,
growth, maturity, and decline.

Product Life Cycle

Products have their own life cycles. Each product life cycles is composed of four stages:

 Introduction. Consumer awareness and acceptance of the product are low. However, sales gradually
increase due to promotion and marketing activities. But at the start, cost of development and
marketing activities are high. This phase generally includes a substantial investment in advertising and
a marketing campaign focused on making consumers aware of the product and its benefits.

 Growth. Sales rise rapidly as the product becomes popular. Due to competition and lower average
cost of production, prices fall. However, profits for he firm and industry increase. To meet growing
demand, product distribution is expanded. Promotion still plays a vital role in the marketing of the
product. If the product is successful, it then moves to the growth stage. This is characterized by
growing demand, an increase in production, and expansion in its availability.

 Maturity. Sales are still rising at the beginning of this stage. But the rate of increase has declined. At
the later partner part, the sales curve reaches its peak while profit begins to fall. Price competition
increases which forces inefficient competitors to get out from the industry. This is the most profitable
stage, while the costs of producing and marketing decline.

 Decline. There is a sharp fall in sales volume while profit curve become almost flat or horizontal.
There is also a decline in the number of competitors. The only survivors are those specialize in the
marketing of the product. Once the product is no longer profitable, it is eliminated from the market. A
product takes on increased competition as other companies emulate its success—sometimes with
enhancements or lower prices. The product may lose market share and begin its decline.

When a product is successfully introduced into the market, demand increases, therefore increasing its
popularity. These newer products end up pushing older ones out of the market, effectively replacing them.
Companies tend to curb their marketing efforts as a new product grows. That's because the cost to produce
and market the product drop. When demand for the product wanes, it may be taken off the market
completely.

Market Research
 Market research is the process of systematically gathering, recording, and evaluating data
regarding a specific marketing problem. The steps in market research are:
1. Defining the problem
2. Making a preliminary investigation
3. Planning the research
4. Gathering the data
5. Analysing the data
6. Reaching a conclusion/decision
7. Implementing and evaluating decisions

Uses of Market Research

Through market research the entrepreneur can be guided in identifying the following:
1. Profitable markets
2. Saleable products/service
3. Strengths and weaknesses of competitors
4. Available resources
5. Business risks
6. Trends in consumer tastes and preferences
7. Better marketing strategies
8. Proper business location
9. New market opportunities
10. Realistic business objective

Location of the Business

The location of the enterprise is a vital factor in the success of a business. A prime location is a
great competitive advantage. All other things equal, the one with a better business location gets the
maximum business. To be able to make the right choice of location, it requires a market survey. Low rent
and attractive leaseholds may be a trap in the proper selection of a good location. There are many factors
to consider in selecting a good location. However, location of the customers may be the most critical factor.
Here are the more basic factors in selecting a business location:
- Population trends
- Income trends
- Consumer characteristics
- Retail sales trends
- Competition
- Transportation policies
- Environment (health and sanitation)
- Electricity
- Water supply
- Communication facilities
- Peace and order
- Fire protection
- Parking space