Identification Of Opportunity

E-O-B- LINKAGE

Entrepreneurs
Opportunity Business
Who are entrepreneurs What is opportunity
What is business
 • A person who create a job not a job-seeker
• A person who creates and develops a
Entrepreneur business idea and then turn it into business
• Make something out of nothing

• Business is all about selling a product or

Business service
• A business idea starts with an opportunity
Elements of Entrepreneurship

1. Perceiving an opportunity

2. Ability to commercialize (Innovation

3. Peruse it on sustainable basis

4. Doing it in systematic means

5. Acceptance of risk
 Opportunity identification is the first and
primal function of entrepreneurs

 What is business opportunity?

What is an Opportunity?
Opportunity is:
 Idea for a new product
 Newly sensed need
 Newly discovered technology
 A situation that enables an entrepreneur to offer marketable
products or services.

 A chance of doing things differently

 Gap in the market

 Do Ideas = Opportunities?
Do Problems = Opportunities?

 Reality - An Idea is Only an Opportunity when It:

• Adds Value to Consumer
• It Solves a Problem
• It Can Make Some Money
 A real business opportunity is not the same as a
mere possibility.

 It must have a good market scope and an

attractive return on investments.

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 A business idea is worth nothing if customers are not
willing to pay for it

Idea Opportunity
 It lasts for ever
• It is perishable
 It is free
• It requires work
 Everybody has ideas
• Must create customer
 Do not need customers to
value
survive

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 Essential Qualities of Opportunity

Timely

Anchored in
Opportunity product, service or
business that
Attractive (rather than just
creates or adds
an idea )
value for its
customers

Durable
 Opportunity Identification

Opportunity identification is ability to

• See
• Discover
• Exploit opportunities that others miss.
Is a process that involves the search for and
discovery of business opportunities
Business Opportunity Thinking
Modes

1. Divergent Thinking Mode

2. Convergent Thinking Mode

1. Divergent Thinking Mode

 Out-of-the-box thinking
 Thinking that moves away in diverging directions so as to involve a variety of
aspects and which sometimes lead to novel ideas and solutions; associated with
creativity.

(Nine dot exercise)

• The rules- connect all 9 dots using a maximum of 4 straight lines without
lifting your pen off the paper or retracing back over an existing line.

2. Convergent Thinking Mode

• Convergent thinking is the type of thinking that focuses on coming up with the
single, well-established answer to a problem.

Which one is more appropriate for an Entrepreneurs???

 Three Ways to Identify an Opportunity

Finding
Observing Solving a
gaps in a
trends problem
market
First Approach: Observing Trends

• Trends create opportunities for entrepreneurs to

pursue.

• The most important trends are:

Economic forces.
Social forces.
Technological advances.
Political action and regulatory change.
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Second Approach: Solving a Problem

 Solving a Problem
 Sometimes identifying opportunities simply
involves noticing a problem and finding a way to
solve it.

 Solving “Points of Pain”:

 To Notice Inefficiency, Inconveniences, & Other

Forms of “Points of Pain” & Use these to Build
New Business Opportunities

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• Ideas Start With Solving Problems
• Any Problems are Big Opportunities.

• No Problems means No Solutions, & No

Reasons for Firms to Exist.
 Second Approach: Solving a Problem

• One of the problems facing the

world is finding alternatives to
fossil fuels.

• A large number of entrepreneurial

firms, like this wind farm, are
being launched to solve this
problem.

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Third Approach: Finding Gaps in the
Marketplace

 Gaps in the Marketplace

A market opportunity is a gap left in a market by
those who currently serve it

Giving a chance to others to add unrealized value

by performing differently from and better than
competitors in order to create new possibilities

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Process of Identifying, Evaluating and
Selecting Business Opportunity

Step 1 Step 2 Step 3 Step 4

Scanning the Screening of

environment business Selecting a
Identifying
& evaluating opportunities business
the needs
of self & the opportunity
& wants of
community &
customers
value preparing a
business plan
1. Identification of NEEDS & WANTS of consumers

• Human NEEDS and WANTS are unlimited.

• Need – is something basic in life such as food, drink,

clothing and shelter.

• Want – is extension of need; craving for better than the

basic need.

• Entrepreneurs: translate the NEEDS and WANTS into

PRODUCTS or SERVICES.
2. Environmental Scanning, Self Analysis &
Community Values

There are three factors to be considered:

A. Environmental Scanning
 Help identify business opportunities and challenges

B. Self Evaluation
 To see what is available in oneself:
 Experience
 Knowledge & Skill
 Financial situation
 Interest
 Networking
C. Values/Norms of the Community

 Business opportunities need to be coordinated with the

religious’ and society’s values or norms.

 Values and Norms = what is perceived as useful and

beneficial to the community.
3. Screening of Business Opportunities

1. Legality: Ensuring the business opportunity is a legal one.

2. Degree of competition: Choose business that is not
monopolized.
3. Capital requirements: Identify sufficient funds to finance
the business.

4. Risks involved: Expecting the potential uncertainties &

considering the percentage of success & failure.

5. Other factors
 Has competitive advantage
 Workable and efficient
 4. Selecting a business opportunity and
preparing a business plan
Real-Win-Worth-it (RWW) method – 3M
 Is the opportunity real?
• Market size?
• Is technology available?
• Likelihood product can be delivered at the right
time and price.
 Can you win with the opportunity?
• Establish a sustainable competitive advantage?
• Can you patent or protect it?
• More capable of executing it then your
competitors?
 Is the opportunity worth it?
• Do you have the resources?
 4. preparing a business plan

• After fulfill step 1 to 3, it is time for the entrepreneur

to select a business opportunity.

• Then to prepare the business plan.

The chain of entrepreneurship
Creativity & innovation are the first stages of
successful entrepreneurial initiatives

Creativity
Innovation

Thinking New
Entrepreneurship
Things
Doing New
Things
Creating
value in the
marketplace
 What is CREATIVITY??

 Ability to produce work that is novel (i.e.

original and unexpected), high in quality and
appropriate (i.e useful, meet expectations)
 Process of Creativity
• Compile all info/data.
Knowledge Accumulation • Via reading, investigation

• Try get rid of problems.

Incubation • Generate creative ideas.

• Slowly formulating solution.

Ideas

Evaluation & • Transform idea into reality,

then into business activities.
Implementation
 What is INNOVATION??

“the process by which entrepreneurs convert

opportunities into marketable ideas.”
Forms of Innovation
• Product Innovation: the changes in the things (product or
services) that an organization offers
• Process Innovation: the changes in the ways in which
product/services are created and delivered.

• Position Innovation: the changes in context in which

products/services are introduced.
• Paradigm Innovation: the changes in underlying mental
models which frame what the organization does. E.g. shift to
low-cost- airlines, online insurance.
 Types of Innovation
• Invention: the creation of a new product,
service, or process, often one that is novel or
untried.
• Extension: the expansion of a product, service,
or process already in existence.
• Duplication: the replication of an already existing
product, service, or process.
• Synthesis: the combination of existing concepts
and factors into a new formulation.
 Ideas that improve
Creativity Efficiency/effectiveness
of a system

Turning ideas into

Marketable
Goods / Services
Innovation

• Creating wealth
Entrepreneurship • Autonomy
FOR YOUR
PRECIOUS
ATTENTION