+

IDENTIFICATION OF BUSINESS OPPORTUNITIES

+OPPORTUNITY TO START A BUSINESS

The ability to identify business opportunities is an essential characteristic of an entrepreneur

Opportunity- favorable position or a range for advancement

+STEPS IN ARRIVING AT BUSINESS OPPORTUNITY

Generating Ideas Screening Process Formulating the Concept of the Business

+GENERATING IDEAS

Source: Environment Scan & Understand the needs & wants of people Abraham Maslow -psychologist People generally have

different kinds of basic needs such as food, clothing, shelter, safety , socialization, recognition for self-esteem & self- fulfillment

+GENERATING IDEAS

Source: Environment Taking macro-perspective or viewing larger

environment where business will be situated (looking at the Social, Technological, Economic, Environmental, & Political)

+WAYS OF SCANNING THE ENVIRONMENT

Looking Closely at the market

Demand & Supply Gap Analysis Import-Export Movement

Product Substitution Forward-Backward Industry Linkages

+WAYS OF SCANNING THE ENVIRONMENT

Looking at People’s skills Observe your Community

Looking at Available Business Assistance Program

Visit DTI Office

Government & Private Institutions

Non-Government Organizations

+COLLECTING INFORMATION

Method Ad Hoc Scanning -short-term, infrequent & initiated by

crisis Regular Scanning -involve studies done on a more or

less regular basis Continuous Scanning -entails regular collection or

processing of data on a wide range of factors from business environment

+MEANS OF COLLECTING INFORMATION Accessing Networks Public Meetings, Trade Fairs & Fora Focused-Group Discussion Key People Surveys Publications In-Depth Interviews Usage & Awareness Studies

+Screening Process

Personal-Level Screening

Firm-Level Screening

+SCREENING PROCESS

PERSONAL LEVEL SCREENING Personal Preference (committed)

Educational & Training Background Work experience (degree of expertise &

knowledge) Business Network & Contacts (buyers, suppliers

or creditors) family Support Personal-Level Screening

Screening Process

+SCREENING PROCESS

FIRM LEVEL SCREENING Market

Technology Availability of Skills

Availability of Raw Materials Financial/Capital Requirement

Profitability Government Support Screening Process

+FORMULATING THE CONCEPT OF THE BUSINESS

Resource Analysis

Resources Strengths Weakness Money

Materials Machines

Methods Manpower

Management Moment (time)

+

The Resource Analysis where strengths and weaknesses are identified, indicates what the firm is capable of doing at the start of the business.

The strengths identify distinctive competencies of the company which can work to its advantage.

+FORMULATING THE CONCEPT OF THE BUSINESS

Environmental Analysis

The Environmental Analysis gives an indication whether the business can survive or not.

+Identifying Opportunities & Threats in the Environment Socio-Cultural Technological & Technical Economic Natural Political Peace & Order Population Trends Government Program Global Environment

+FORMULATING THE CONCEPT OF THE BUSINESS

Personal Values Analysis

represent your philosophy, guiding principles, outlook and aspirations for your business

(non-monetary values)

+

ANY QUESTIONS?