Entrepreneurship Module 2

Talents, hobbies, skills, and expertise

Business opportunities do not just come from outside forces but also from within the entrepreneur.

Location

Entrepreneurs just have to look at their ecosystem and they will be able to spot a business opportunity right away.

Irritants in the marketplce such as deterrents, problems, complains, and delays

Entrepreneurs see opportunities in situations where there is recurring problem.

Developing a business plan.

Entrepreneurs should formulate a business plan when they have already spotted and assessed the opportunities for a market. Which will be the core guide and direction of the entrepreneur in calculating the resources needed, assessing how to obtain these resources efficiently, and running the business sustainably.

Legal Factors

Related with political factors, legal factors are government laws and regulations that can restrict or allow business activities.

Ordinary innovation

These innovations occur ordinarily as the name implies. They are commonly originating from market analysis and technology pull instead of a technology push.

Breakthrough innovation

These innovations, which may also involve inventions, occur infrequently as these establish the flat form on which future innovations in an area are developed.

Brainwriting or Internet Brainstorming

This is exactly the same as brainstorming except that the channel used is not face-to-face, but in writing or online.

Profitability

possible return on investment and profit

Risk appetite

refers to the entrepreneur's tolerance of business risks.

Customer-requirement

the product will meet the customer requirements

New discovery or knowledge

these are new trends that can be the core business model of a new venture.

Viability

whether the idea will have a reasonable chance of success

Entrepreneurial process

~ Opportunity Spotting and Assessment ~ Developing a Business Plan ~ Determining the Capital Needed ~ Running the Business

Product Development Stage

In this stage, the entrepreneur leverages on the information generated from the prosoective customers via the concept stage.

Brainstorming

It is an activity that allowsnthe participants to share creative ideas using specific rules. It is a fun discussion with lenient rules.

Product or Service Development Process

It is the refining process under the last step which is called the seizing the opportunity.

Environmental or Ecological Factors

The scan of these factors will help the entrepreneur determine of the business he or she os entering will comply with the environmental standards or will just be a hazard of people , animals and nature.

Technological Factors

These are composed of innovations of an existing technology or invention of a new one mostly on applied science and engineering research eras.

Demographic Factors

These are the characteristics of the people in the target market.

Consumer preferences, interests, and perception

These are the current needs and wants of potential customers that shoud be discivered right away by budding entrepreneurs.

Ethical Factors

These are the factors that will serve as the entrepreneur's guide on how to be ethical in running the business

Political factors

These factors are mostly induced by policies and administration, which can have a strong effect in the entrepreneur's business.

Economic factors

These factors include income , expenses and resources that can influence the cost of doing business and generating income.

Socio-cultural Factors

These factors represent a general view of the locality's , traditions , custom , beliefs , norms and perceptions.

Technological innovation

These innovations occur more frequently than breakthrough innovations. These are technological advancements of an existing product or service.

Unexpected opportunities

These may happen in unlikely situations, unlikely places, and with unlikely people. Existing problems and bottlenecks often give rise to an expected opportunity.

Industry

This is the source of current trend on what is happening in the industry where the future business will belong to.

Problem Inventory Analysis

This method is similar with FGD except that the participants are alraedy given an inventory of product ir service problems.

STEEPLED

This represents the general environement where the entrepreneur can identify business opportunities from and where the business is about to operate.

Test Marketing Stage

This stage validates the work done from the first three stages to measure succes in the commercialization of the product or service.

business plan

is a comprehensive paper that details the marketing, operational, human resource, financial, strategic direction and tactics of the business.

Entrepreneurial process

is a step-by-step procedure in establishing any kind of business that an entrepreneur has to undergo.

Opportunity

is an entrepreneur's business idea that can potentially become a commercial product or service in the future. The general rule is to find the opportunity first be

Innovation

is the process of positively improving an existing product or service.

Opportunity spotting and assessment.

Entrepreneurs at this point take note of interesting trends in their environment. Their toughest job is to carefully assess the opportunity through estimation of opportunity length, capitalization required, threats, profitability, and calculation of real and perceived value. They should also assess if the opportunity is aligned with their personal goals and attributes. They should also think n advance how they will position the product or service in the market and showcase its unique selling proposition.

Focused Group Discussion (FGD)

In this method, a moderator handles a very open, free-flowing, and in- depth discussion with a group of people who can provide insightful ideas about a new product or service that will fill a market need.

Concept Stage

In this stage, the developed idea will indergo a consumer acceptace test.

Idea Stage

In this stage, the entrepreneur determines what are the feasible products and/or services trhat will perfectly suit the opportunity.

Seizing the Opportunity

Opportunity screening is the last step in opportunity spotting and assessment. This the "pushing through" with the chosen opportunity. The entrepreneur's idea can be any type of innovations listed below.

Screening the Opportunity

Opportunity screening is the process of cautiously selecting the best opportunity. The selection will depend on the entrepreneur's internal intent, external intent, and risk appetite.

S1: Seeking the Opportunity

Opportunity spotting is the first step and is the most difficult process of all due to the number of options that the entrepreneur will have to choose from.

Competitors

Recognizing and understanding potential competitors will aid the entrepreneur to develop a product or service that is unique and will surely stand out from the competition.