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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

 Product-route : Appropriate when product or

process developed and attractive application
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


- Growing security concerns in offices, homes

- Interest in comfort, travel and leisure

Do you agree that basically we are….

 Lazy
 Pleasure seeking
 Comfort seeking

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

S-W Analysis

Interest Area


Narrow List


Gap to fill
Financial Attractiveness Strategy (source,
cost, availability, adequacy)

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

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 ,
Market Attractiveness

 Identify areas of high customer dissatisfaction (discontentment +


 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
 Checks possibilities of achieving objectives
 Finds SW-OT fit
 Enables phasing of implementation
 Tool to convince other stakeholders objectively