1- OPPORTUNITY SEEKING The final ingredient is the entrepreneurial gut game.
This
Entrepreneurs are innovative opportunity seekers.
They have endless curiosity to discover new or different
ideas and see whether these ideas will work in the
marketplace. This is what separates entrepreneurs from
the ordinary businessman whose main objective is simply
to earn profits from producing, buying, and selling goods.
Entrepreneurs create value by introducing new
products or services or finding better ways of making them.
These may include innovation in terms of product design or
addition of new product features to existing ones. They
may also thinker on improving their operational capability
by employing new technologies that will bring them greater
efficiency, better economies, and even enable them to
reach unparalleled superiority.
• They may also consider expanding their reach by
creating new markets or maximizing existing market
reach. At the highest level, entrepreneurs may totally
change the prevailing business paradigm by rendering
it obsolete through the introduction of disruptive
technologies, processes, and systems.
• Essential to an entrepreneur’s opportunity seeking are
the entrepreneurial mind frame, heart flame, and gut
game.
The entrepreneurial mind frame allows the entrepreneur
to see things in a very positive and optimistic light in
the midst of crisis or difficult situations. Instead of being
discouraged, the entrepreneur is able to use these
problematic situations as inspiration in creating something
innovative. In fact, in Chinese writing, the word crisis is
composed of two characters. The first character means
danger while the second character means opportunity.
If there is one commonality between an inventor and an
entrepreneur, it is their surging passion or the
entrepreneurial heart flame. Driven by passion, they are
drawn to find fulfillment in the act and process of discovery.
Passion is that great desire to attain a vision or fulfill a
mission. It is about wanting something so much that a
person would be willing to totally devote one’s self to quest.
Despite several setbacks or disappointments, the
entrepreneur is not easily disheartened, but is rather driven
to persevere even more.
The heart flame is also about emotional intelligence or
EQ which is often manifested in the entrepreneur’s
efforts to nurture relationships with customers,
employees, and suppliers.
The entrepreneur also looks after the interest of his or her
people by motivating and encouraging them to be the best
they can become. This creates a caring culture within the
organization that brings about synergy among the people
working toward a common vision.
refers to the ability of the entrepreneur to sense without
using the five senses. This is also known as intuition = gut
feeling
Somehow, the entrepreneur just knows, whether something
will work or not without necessitating logical, systematic, and
sequential thinking. The gut game also connotes courage or,
in the local dialect, “lakas ng loob” (strong intestinal
fortitude). It is simply confidence in one’s self and the firm
belief that everything is within reach so long as you aspire
for it.
2- THE MANY SOURCES OF OPPORTUNITIES
There are many ways to uncover or discover opportunities.
Some have to do with looking at the big picture and noticing
emerging trends and patterns. Others have to do with finding
out what specific customer segments are being targeted in
the marketplace. Still, others come from new technologies
and new knowledge.
Macro Environmental Sources of Opportunities
The macro environment refers to the “big or macro forces”
that affect the area, the industry and the market, which the
enterprise belongs to. They influence how business should
be conducted, how consumers will behave, how supply and
demand will move, how different competitors would position
themselves, and how this cost of doing business will
proceed.
Socio-Cultural Environment
The socio-cultural environment includes the demographics
and cultural dimensions that govern the relevant
entrepreneurial endeavor. Taking this aspect into
consideration helps the entrepreneur assess the trends and
dynamics of the bigger consumer population, their beliefs,
tastes, customs, and traditions. It looks at social structure
and shifts in social status and behavior.
Political Environment
The political environment defines the governance system of
the country or the local area of business. It includes all the
laws, rules and regulations that govern business practices
as well as the permits, approvals, and licenses necessary to
operate the business. Specifically, it regulates the use of
natural resources, the disposal of wastes, the taxation of
income, the importation of goods and services and other
such concerns.
Economic Environment
Supply and demand forces mainly drive the macro
economic environment. They are the same factors that
drive the interest and foreign exchange rates that fluctuate
with the movement of the market forces. In any country, the
income level and the purchasing power of its people as well
as the competitiveness (or uncompetitiveness) of its
industries and enterprises are sources of opportunities.
Ecological Environment
The ecological environment includes all natural
resources and the ecosystem, habitat of men, animals,
plants, and minerals. There is growing awareness in the
world today that will make this factor more and more
important for countries, industries, and businesses.
The threats of ecological degradation have generated
countless opportunities such as smoke and spill detectors,
filters and screens, pollution counters, and energy saving
devices. Opportunities abound for greener, cleaner, and
healthier products, whose objectives are to save the planet
and prolong lives.
Technological Environment
New scientific and technological discoveries, which
often leads to the launch and commercialization of new
products with superior attributes or to rendering the old
one’s obsolete, are the entrepreneur’s nightmares. In such
cases, the entrepreneur is left with no choice but to invest
in new technologies in order to keep up with competition.
Technology does not only come in in the form of advanced
machinery or equipment, but it can also be in the form of
new systems, new processes, or new products.
3- Other Sources of Opportunities
As an opportunity seeker, the entrepreneur will surely
discover other sources of opportunities. Unexpected
successes (or failures) can lead to good opportunities.
Another potential source of opportunity is the
entrepreneur’s own set of skills or expertise, or hobby. New
knowledge as well as new technology can be the source of
highly innovative opportunities.
1. Customer preferences change over time.
Example: The prevalence of sugar-free products is now
becoming the new normal, particularly to products that
used to be sugar-full like soft drinks and desserts. Cola
manufacturers have long introduced their respective
sugar-free cola drinks as healthier alternatives to their
cola drinks. This caters to the health-conscious
consumers who have shifted due to fear of obesity and
diabetes.
2. People’s tastes in clothes, music, shoes,
entertainment, dance, sports, hobbies and even
careers have evolve over the years.
Example: The 1980’s could be best described as the
era that gave birth to music television or MTV. This era
was all about image that went with the popular artists
at that time such as Michael Jackson and Madonna.
These artists had become iconic because of their
talent, fashions, styles, and persona, which defined the
80 decade. Hip hop, new wave, and hair metal were the
musical genre that emerged.
3. What piques customers is a great source of
opportunities.
Example: Government-related services are now made
more available to the public because they have opened up
satellite offices in major malls. Before, people had no
choice but to go to the main office, line up for hours, to
apply or renew their licenses, clearances, passports, etc.
Now, with these satellite services closer to the public,
more people are encouraged to transact with these
government agencies because it has become more
convenient.
4. Before the customer is won over, there is first a
battle for the mind. Next, there is a battle for the heart.
Finally, there is a battle for the wallet.
Example: When the new smartphones came out,
customers were being convinced by the different
competitors on what was the best choice to make . This is
the battle for the mind.
When customers got attracted to the features and brand
image of one competitor, it had won the battle of the heart.
Finally, when customers lined up to buy their preferred
smartphone, the competitor had won the battle of the
wallet.
5. The longer the customer wants to use the product,
the greater the chances of creating lasting loyalty.
Example: Among Filipinos, there is this old adage of
“nakasanayan na” (got used to it) especially when it comes
to loyalty to certain products. This is true in the case of
jollibee, which has captured the heart of the Filipinos.
Jollibee has been so successful due to the “Filipino taste”
of their products.
6. Opportunities abound in shaping consumer
perceptions or occupying spaces in their minds or
places in their hearts that have not yet been filled.
Example: A television commercial of a supplementary
drink for diabetics instills “fear of death” in the minds and
hearts of its potential consumers. The product is meant to
aid in controlling the blood sugar level of diabetics,
together with the proper diet and a healthy lifestyle. The
commercial ad instills fear that shapes the consumer’s
perception about what is good or bad to drink.
7. New inventions, new systems and work
processes, new insights about the human psyche,
new applications for old knowledge.
Example: Due to the advancement of new technology
applied to the medical field, open surgery has become a
thing of the past when removing smaller cysts or tumors.
8. Determining personal preferences and
competencies lay the foundation for a new business
venture.
Example: The mushrooming of culinary schools indicates
the booming interest of students in pursuing their love for
cooking and/or baking. One of the career tracks offered by
these culinary schools is enabling the student to put up his
or her own restaurant or pastry shop. Several weekend
market and food bazaars have also opened up to
showcase the talents of these young culinary students.
9. Unexpected occurrences in both the external and
internal environment of the enterprise indicate that
significant changes are happening, and opportunities
are sprouting.
Example: Who would have thought that videos taken by
closed-circuit televisions (CCTV) would make waves in the
news headlines as one of the best evidences in a crime?
Installed practically everywhere, the use of CCTV’s has
created a tremendous opportunity for entrepreneurs,
particularly those already engaged in the safety and
security industry. In fact, there are cities and municipalities
that have already issued ordinances requiring the
installation of CCTV’s before renewing or issuing business
permits.
4- Opportunity Screening
After opportunity seeking comes the rigorous process of
Opportunity Screening. Because of the many opportunities
possible for the entrepreneur, it is important to come up with
a short list of a few very promising opportunities.
In screening opportunities, the entrepreneur first has to
consider his or her preferences and capabilities by asking
three basic questions:
1. Do I have the drive to pursue this business opportunity to
the end?
2. Will I spend all my time, effort, and money to make the
business opportunity work?
3. Will I sacrifice my existing lifestyle, endure emotional
hardship, and forego my usual comforts to succeed in this
business opportunity.
If “YES” is your answer to all of the above, then you can
begin tour earnest pursuit of that opportunity. At the simplest
level, the entrepreneur may want to make a risk-return grid.
Risk-Return Grid for Screening Opportunities
Risk Return Low Risk Medium Risk High Risk
High Return Best Good Fair
Medium Return Good Fair Bad
Low Return Fair Bad Worst
The 12 Rs of Opportunity Screening
1. Relevance to vision, mission, and objectives of the
entrepreneur. The opportunity must be aligned with what
you have as your personal vision, mission, and objectives
for the enterprise you want to set up.
2. Resonance to values. Other than vision, mission, and
objectives, the opportunity must match the values and
desired virtues that you have or wish to impart.
3. Reinforcement of Entrepreneurial Interests. How
does the opportunity resonate with the entrepreneur’s
personal interests, talents, and skills?
4. Revenues. In any entrepreneurial endeavor, it is
important to determine the sales potential of the products
or services you want to offer. Is there a big enough market
out there to grab and nurture for growth.
5. Responsiveness to customer needs and wants. If
the opportunity that you want to pursue addresses the
unfulfilled or undeserved needs and wants of customers,
then you have a better chance of succeeding.
6. Reach. Opportunities that have good chances of
expanding through branches, distributorships, dealerships,
or franchise outlets in order to attain rapid growth are better
opportunities.
7. Range. The opportunity can potentially lead to a wide
range of possible product or service offerings, thus, tapping
many market segments of the industry.
8. Revolutionary Impact. If you think that the opportunity
will most likely be the “next big thing” or even a game-
changer that will revolutionize the industry, then there is a
big potential for the chosen opportunity.
9. Returns. It is a fact that products with low costs of
production and operations but are sold at higher prices will
definitely yield the highest returns on investments. Returns
can also be intangible, meaning, they come in the form of
high-profile recognition or image projection.
10. Relative Ease of Implementation. Will the opportunity
be relatively easy to implement for the entrepreneur or will
there be a lot of obstacles and competency gaps to
overcome?
11. Resources Required. Opportunities requiring fewer
resources from the entrepreneur may be more favored than
those requiring more resources.
12. Risks. In an entrepreneurial endeavor, there will
always be risks. However, some opportunities carry more
risks than others, such as those with high technological,
market, financial, and people risks.