“SEARCH FOR BUSINESS OPPORTUNITY, IDEATION, INNOVATION AND CREATIVITY

1. SEARCH FOR
BUSINESS
OPPORTUNITY,
IDEATION,
INNOVATION
AND CREATIVITY

2. FACTORS
AFFECTING
BUSINESS
OPPORTUNIT
Y
The following factors on resources
have to be evaluated in discovering business
opportunities:
• Markets
• Individual Interests
• Capital
• Skills
• Supplies of inputs
• Manpower
• Technology.
FACTORS AFFECTING BUSINESS
OPPORTUNITY

3. FACTORS AFFECTING
BUSINESS
OPPORTUNITY
Market
This refers to the number of
prospective buyers,
competitors, the price, and the
quality of goods and services
that have to be analyzed.
Business opportunities exist in
areas where consumer
satisfaction is weak or
incomplete.

4. FACTORS AFFECTING
BUSINESS
OPPORTUNITY
Individual interest
Business interest of individuals
should match business
opportunities. For example, if
one is a good cook, he could
venture in the food business.
Same is true when one is good
in arts and crafts, he could
engage himself in a business
focusing on arts and crafts.

5. FACTORS AFFECTING
BUSINESS
OPPORTUNITY
Capital
This serves as the fuel
that keeps the
business operating.
The availability of
funds should fit the
type of business to
organize.

6. FACTORS AFFECTING
BUSINESS
OPPORTUNITY
Skills
The entrepreneur
should have the
proper skills in the
business he is going
to undertake.

7. FACTORS AFFECTING
BUSINESS
OPPORTUNITY
Supplies of inputs
It is important that
there are steady
suppliers of raw
material and other
inputs to the
business.

8. FACTORS AFFECTING
BUSINESS
OPPORTUNITY
Manpower
The success of any
business also
depends on the
efficiency of its
employees.

9. FACTORS AFFECTING
BUSINESS
OPPORTUNITY
Technology
Entrepreneurs should be
aware of the presence of
technology to improve
their products or
services, or introduce
new innovations in the
market.

10. THE SEARCH FOR
BUSINESS
OPPORTUNITY

11. SAMPLE BUSINESS VENTURE
MARKET
INTEREST
CAPITAL
SKILLS
SUPPLIES OF INPUTS
MANPOWER
TECHNOLOGY

12. OPPORTUNITY-
SEEKING
PROCESSES
Other opportunity-seeking processes that
can be a guide to prospective entrepreneurs as to
what kind of business to establish are as the
follows:
• Look at other successful
businesses/entrepreneurs.
Looking up at other entrepreneurs as a role
model that could be an inspiration, by doing
what they have done or do it even better.
• Respond to a problem area.
The solution to a problem might be
transformed into business venture.

13. OPPORTUNITY-
SEEKING
PROCESSES
• Home-Based Business
Option.
These must not be taken for
granted, for there are some big
businesses that started as a
business at home.
• Linkage of Resources.
The entrepreneur can produce
his own input instead of buying
them.

14. STEPS IN MARKET RESEARCH
The best way to evaluate business opportunity is through Market Research, which is
defined as the study of all problems in marketing a product.
The Steps in Market Research are:
Defining
the
problem
Making
a
preliminary
investigation
Planning
the
Research
Gathering
the
data
Analyzing
the
data
Reaching
a
conclusion
Implementation
and
evaluating
decision

15. SELECTING
THE LOCATION
Location of the business is
a key factor in business
success. In selecting a
location, the population,
income, competitor,
government policies, peace
and order, and others are
being considered. This
requires a market survey.

16. The Search for
Business Opportunity
• To be able to translate
business opportunities
into profits, the SWOT
Analysis is applied. These
are tools for evaluating
the strengths,
weaknesses,
opportunities, and threats
associated with a
particular product or
service.

18. FOUR STAGES OF
PRODUCT LIFE CYCLE
Stage 1: Introduction
As a product is introduced there will usually be
high costs in bringing it to market but low sales
resulting in initial losses.
Stage 2: Growth
If the market decides it wants the product, sales
increase; and unit costs decrease because of
economies of scale.
The product starts to become profitable at
sales above the break-even point.
Stage 3: Maturity
Profits gradually increase as both demand
peaks and costs continue to reduce because of
efficiencies.
Eventually competitors also enter the market
with their own products in pursuit of these
profits and this increased competition leads to
a reduction in sales.
Stage 4: Decline
Sales and profits reduce significantly as the
product comes to the end of its life and
customers move to other products.

19. BUSINESS BY
CATEGORY OR
SECTOR
SERVICE-BASED
• Common examples of service-base
businesses are consultancy, barbershops,
beauty parlors, repair shops, rendering
professional services such as engineers,
dentistry and medical doctors.
• THERE IS NO NEED TO MANUFACTURE
SOMETHING.

20. BUSINESS BY
CATEGORY OR
SECTOR
MANUFACTURING
BUSINESS
• This is a manufacturing or
production-based business by
creating a product.
• E.g., Hand painted t-shirts or
ceramic vases, candle making
which can be done in our
home

21. BUSINESS BY
CATEGORY OR
SECTOR
TRADING OR PRODUCT BASED
• This is a buy-and-sell transaction that
can happen in your storehouse,
showroom, or any other structureless
environment.
• Selling involves a lot of customer contact
and requires a great deal of persistence.
• E.g., grocery store, bakery products,
general construction materials.

22. BUSINESS BY
CATEGORY OR
SECTOR
LICENSE BUSINESS
OPPORTUNITIES
• If you find some difficulties in launching
a product or service, it is a good idea to
look for licensed business opportunities.
• E.g., Franchising

23. BUSINESS BY
CATEGORY OR
SECTOR
DISTRIBUTORSHIP
• This is where an independent
entrepreneur company or
individual enters into an
agreement or contract to
offer, sell, or distribute a
particular product, but is not
entitled to use the
manufacturer’s trade name as
part of its own trade name.

24. BUSINESS BY
CATEGORY OR
SECTOR
WHOLESALER
These sell the product of manufacturers or
producers to retailers. They purchase in
bulk and sell them to smaller outlets.

25. BUSINESS BY
CATEGORY OR
SECTOR
RACK JOBBERS
• This involves an agent or buyer entering
an agreement with a parent company to
market its goods to various stores by
means of strategically located store
racks.

26. BUSINESS BY
CATEGORY OR
SECTOR
SUBCONTRACTING
This is a familiar form of business format in
the garment sector, as well as the shoe
industry. This involves signing up an
arrangement with a major producer to
complete a set of product components on
a pre-agreed price.

27. BUSINESS BY
CATEGORY OR
SECTOR
VENDING MACHINES
ROUTES
• These are placed in various
places or locations. The
entrepreneur needs to have
substantial capital outlay as
he had to pay for the
vending machine including
stocks to be vended.

28. IDEATION
• Is the creative process of generating
new ideas, which can be
accomplished through a variety of
ideation techniques, such as
brainstorming and prototyping. If
done right, ideation is what helps
founders and executives determine
the right problem to solve and how
to solve it.
• It is the literal action of forming
ideas, from their conception to real-
world application and
implementation.

29. The most common way of
developing ideas is as follows:
• Recognizing the need. Develop
an idea or a product that can
satisfy a need, and respond to
need by establishing a business
concern.
• Improving an existing product.
The result of consumer
dissatisfaction to the existing
product could open the door to
introduce innovations or
improvements.

30. The most common way of
developing ideas is as follows:
• Recognize trends.
Entrepreneurs should be able
to recognize the opportunity
to develop a product and set
trends that can make them
leading entrepreneurs.
• Be aware of everything. There
is no other way to know about
what is happening around
but to research and read.

31. The most common way of
developing ideas is as
follows:
• Questions and assumptions.
Anybody can question the
relevance or quality of any
product or services, provided
that there is an effort to
the product.
• Naming it first, then, develop it.
If you have the idea, study it
develop it to something that is
worth a business.

32. EVALUATING IDEAS
A wrong choice of idea could be the cause of
business failure, so ideas need to be evaluated if it can be
profit potential. The following are some tips in evaluating
ideas:
• Do not let your idea follow money; let money follow your
ideas. If the idea is clear and viable, there should be clear
options for the business out of the idea.
• See yourself as a problem solver. Ideas should be a
solution to an existing problem of the consumer or the
market in general.

33. Tips In Evaluating Ideas:
• Use research as a weapon against failure. This is an important
fact in decision-making process; most business failed because of
lack of information.
• Make sure your idea has longevity. An idea that is worth
pursuing into a business is one which has a long-term purpose
and not only a bad.
• Take a risk on your ideas. Venture into a business by using your
own ideas.
• Test your idea against the past, present and future. The market
needs and demands will not be far from what is happening in the
past, so it is better to get information about the past, present,
and future.
• Know the idiosyncrasies of your market. Know the needs of your
market and all the factors that affect the buying process. Your
idea will depend on this.

34. PROTECTING IDEAS
There are many ways of protecting your idea
from being stolen or claimed by others, and losing the
opportunity to be known as the creator and the
originator of the ideas. Aside from this, no company
will pay you a royalty if the idea presented is not legally
protected. The following are the ways of protecting
your ideas:
• Confidentiality Agreements. It specifically provides
that a signer will not share the idea to anyone. This is
a typical agreement or contract where one should
ask advice to a patents attorney or those with
experience and expertise in the intellectual property
rights.

35. PROTECTING IDEAS
The following are the
ways of protecting your
ideas:
Trademarks. This is a word,
name, symbol, or device
used by manufacturers on
merchants to identify their
goods and distinguish them
from others sold in the
market.

36. PROTECTING IDEAS
Copyrights. A copyright
protects the creative works
of composers,
authors/writers, artists, and
others. This is the easiest
form of protection for
Intellectual Property.