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How to Spot and Evaluate an

Opportunity and Prepare a


Business Plan
 Goodknight Hotmail Goggle

 Brufen FedEx Computer

 Cell cabs Amazon. COM Net Banking


Some have focused on certain links

 For product features: Sony Walkman, Apple Computer,


Barbie Doll, Hotmail , Disneyland, Harry potter

 For information collection process: Internet based EBay,


Amazon , Google
 For buying process: Amazon , Dell , widely distributed and
well displayed products

 For paying process: Visa and Master Cards

 For delivery process: DHL’s jumbo boxes, couriers


Sources of New Opportunities

 Customer- route: When customer dissatisfaction


is high; appropriate also when investment in
technology development/application not yet
made

 Product-route : Appropriate when product or


process developed and attractive application
required
Sources of New Opportunities

— New Applications existing products/ technology (Chic)

— Technology integration (call taxi, mobile)


Sources of New Opportunities

– Industry and market changes


- Growing healthcare awareness (and concern to lengthen life)
created bottled water, HQ packaging, fitness, yoga,….

– When industry grows quickly, established firms concentrate on


defending what they have
- B&W TV manufacturers in India, HMV
- Neglected but fast - growing segments offer excellent
opportunities (Budget hotels/ retailing)
Sources of New Opportunities

– Demographic Changes

- Managing old age creating many opportunities

- Growing higher education needs and state’s


helplessness

- Growing security concerns in offices, homes

- Interest in comfort, travel and leisure


Do you agree that basically we are….

 Lazy
 Pleasure seeking
 Comfort seeking

And
Any product/service that helps us achieve these needs have
potential
Steps in the Conundrum

S-W Analysis

Interest Area

Dissatisfaction
Analysis

Narrow List

CSFs?
Capability
Assessment

Gap to fill
NO
Go
Financial Attractiveness Strategy (source,
cost, availability, adequacy)

Technical Marketing
Attractiveness Attractiveness
Solution to Customer
Strategy Dissatisfaction Strategy (size,
(Existing/New Entry,
Technology and Sustenance)
Products/Service)

Entrepreneurial Capability Strategy


(Attitude, Skills, Knowledge Pool/Network –
Individual / Group
Self-Opportunity Conundrum
Previous Experiences Problems (Existing
(Knowledge, Skills) Emerging )

Self Customer

Access to New
Level of Dissatisfaction
Knowledge, Skills
(Criticality ,
Discontentment)
Market Attractiveness

 Identify areas of high customer dissatisfaction (discontentment +


criticality)

 Assess market size

 Assess challenges in accessing customers

 Assess competitive attractiveness


Overall Attractiveness
 Determine technical feasibility

 Estimate financial viability

 Team quality is critical

 Assess Entrepreneurial Resources (AER)

 Assess fit with personal preferences and aspirations

 What and how big are the gaps in capabilities


 Can the gaps be filled? How? Implications for success

 Remember, EXECUTION is key to success

 Iteratively balance the venture tripod (mkt, tech, fin) and


entrepreneur ( your team’s) at every stage

 Detached passion

 Prepare a dynamic Business Plan


Myths about Business Plan

 Just to get funds from banks, figures bent for them

 Prepared by consultants, not met

 Dynamic environment, assumptions change fast

 Not plan, but execution is key to success

 Unnecessarily time consuming (analysis paralysis)


Pitfalls in Selecting New Venture

 Lack of Objective Evaluation


 No Real Insight into the market
 Inadequate Understanding of Technical Requirements
 Poor Financial Understanding
 Lack of Venture Uniqueness
 Ignorance of Legal Issues

Sources :entrepreneruship
Author : kuratko, D.F & Hodgetts R.M
Why BP?

 BP is a route map
 Tool to refine idea
 Facilitates (forces) developing strategic
perspective
 Checks possibilities of achieving objectives
 Finds SW-OT fit
 Enables phasing of implementation
 Tool to convince other stakeholders objectively