This document discusses evaluating business opportunities and determining market potential. It outlines a 5-stage process for evaluating market potential: 1) confirm market size, 2) analyze market growth, 3) examine competition, 4) understand customers, and 5) evaluate profitability. An objective market is a clearly defined group of customers that can be characterized based on attributes. Determining the right target market involves creating a product description and answering questions about customers and pricing.

1. Week 03
Evaluating Business Opportunity

2. Objective
1. To be able to learn the opportunity for Entrepreneurship.
2. To Examine the Five Stages Business Opportunity Evaluation Process.
3. To know need of the market.
4. To analyze the 5 stages how to decide market potential to foster Business.

3. Contemplating it fairly conceptually, we see that entrepreneurial activity starts with
perceiving or recognizing the potential for individuals to change their conduct - to
accomplish something they are at present not doing or to accomplish something
uniquely in contrast to they are as of now making it happen. The entrepreneur perceives
that, allowed the opportunity, some arrangement of individuals would like to do things
any other way whenever allowed the opportunity.
The entrepreneur then, at that point, imagines another item or administration as the
empowering agent for that new conduct thus lays out another type of utilization.
Assuming a group is correct about the potential for this new type of utilization, then, at
What is an opportunity for entrepreneurship?

4. that point, they should find out if this opportunity can be taken advantage of by an
entrepreneurial endeavor, which includes getting options or rivalry and monetary
manageability, and whether an opportunity can be taken advantage of by them,
which includes getting what it takes, mastery, and experience important to
underwrite of the endeavor.
The establishment for any entrepreneurial endeavor is a market/item fit or match.
We think about the different sides of this idea, in spite of the fact that we should
perceive that each is comparative with the other.

5. A market need is the potential for an adjustment of utilization. This idea covers
everything from neglected clinical necessities, challenges confronting organizations,
social issues, and so forth to the cravings for diversion and social cooperation among
youngsters. The potential for an adjustment of utilization may continuously have been
there, for example, the presence of infection conditions, or they might come about as a
result of evolving conditions, for example, expanding abundance makes the longing to
have specially prepared espresso drinks fermented for us separately. To comprehend a
market need is to comprehend a (right now) unfilled longing or potential.
What is a market need?

6. New pursuits by and large start with a theory that this potential is genuine, however the
main thing to take care of is dependably to approve this supposition, and ordinarily to
reconsider the speculation based on realities and proof.
What is a practical arrangement?
Numerous entrepreneurs wrongly start with an item idea. We utilize the term achievable
answer for maintain the entrepreneur's emphasis on the actual need. Along these lines,
the entrepreneur will attempt to get what will be expected to offer a convincing
arrangement that will really spike the adjustment of utilization required.

7. This discipline will limit that possibility making an item idea that comes up short or
neglects to consider basic components of the need or potential inhibitors to
reception.
Assuming an entrepreneurial group approves that they have distinguished an
expected market/item fit, thus have a potential reason for an endeavor, three
different inquiries should be addressed.

8. Contest is the universe of choices that the potential client has. Entrepreneurs
frequently tragically consider rivalry different organizations (regularly other new
companies) that have similar item thought as they do. In any case, contest should
be considered according to the clients point of view. What is the full arrangement
of choices that the client has. What's more, by and large, the most convincing option
is to sit idle.
What is the opposition (the client's other options)?

9. Do we have the right group?
Assuming a group has a reasonable thought, they can profit by it in the event
that they can execute well in every one of the key regions expected to make an
endeavor fruitful. This requires the right abilities, aptitude, and experience, and
furthermore drive, inspiration, and steadiness.
Is the endeavor monetarily feasible?
The fundamental inquiry here is: Will somebody pay us enough with the goal that we
can make, support, and develop our endeavor? The central inquiry is as a rule: Will our
planned clients pay enough for our item or administration?

10. Be that as it may, in some cases there are different wellsprings of income. On the off
chance that there is by all accounts a positive response to this inquiry, the
entrepreneur can get some information about the wellsprings of subsidizing
important to send off and lay out the endeavor. The inquiry will be whether the
likelihood of coming out on top is sufficiently high and the possible result adequately
enormous to draw in speculation.
It is useful to consider the assessment venture as persistently posing the inquiry of
whether the opportunity merits putting resources into. You are really building and
afterward persistently modifying an "speculation outline."

11. Figure 2.1 5 StageBusinessOpportunityEvaluationProcess
Slide Team; https://www.slideteam.net/business_powerpoint_diagrams/five-stage-business-opportunity-evaluation-process.html: Retrieved on March 12, 2022

12. Figure 2.2 Sourcesof BusinessOpportunity
KN E-Library; https://knecnotes.com/reasons-to-consider-when-evaluating-a-viable-
business-opportunity/ Retrieved on March 12, 2022

13. 5 stages how to decide market potential to foster Business
It is a seriously difficult interaction to pick the right market. It requires both
investigation of information, acknowledgment of market conditions and decides
that sway it.
A decent method for deciding the potential of a picked market is to check it with five
essential advances. They permit to decide qualities and shortcomings, foster
possibilities and conceivable section boundaries. We should investigate them.

14. Stage 1. Confirm market size
The reason for deciding the market potential is to inspect its size, which should be
possible in two ways - as for the volume or generally worth of the market. Volume
implies the absolute number of potential purchasers, who can make exchanges on a
given market. Thus, the general worth of the market ought to be deciphered as the all
out monetary worth that customers can pay for market items. This data is the
beginning stage for additional investigation. They permit to decide the fundamental
qualities portraying a given market. After check, you can continue to the following
stages.

15. Stage 2. Market development
The market size doesn't give full data about its potential. Along these lines, the
improvement patterns ought to be painstakingly dissected. For this situation,
factors, for example, short and long haul gauges, number of organizations, hazard of
hindered improvement and current market patterns are considered. It merits
following the monetary examination from a couple of years back and afterward
deciding development elements and elements animate the market. In case of any
development unsettling influence, circumstance should be surveyed and confirmed
whether they might affect your business later on.

16. Stage 3. Rivalry
While investigating the chance of entering another market you can't disregard contest.
Countless contending organizations doesn't really mean less potential. Why? We
should begin with the way that the worth of contest should be confirmed. Assuming
there are many organizations working on the market, yet they are on a moderate
transformative phase, there is a decent opportunity that their mastery will be feasible.
To start with, their shortcomings and assets should be dissected, after which potential
arrangements ought to be characterized. This will permit to successfully contend on
the market with different organizations.

17. Stage 4. Customers
The profile of potential shoppers, their inclinations and conduct give one more piece of
significant data that ought to be analyzed at the phase of evaluating market potential.
Every industry is described by its particularity. It is, among others, about the method of
correspondence with the client or potential ways of contacting them.
Along these lines, the objective gathering, in this accurate case shoppers, is one more
significant component of the investigation. Presently, there are many devices accessible
on the web that permit you to computerize such examination. They can likewise be
made based on commonly accessible factual information.

18. Stage 5. Productivity
What is generally intriguing for everybody, who is contemplating beginning a
enterprise on an allowed market, is a potential opportunity of benefit from venture.
Observing a harmony between the size of the monetary cost, how much work and the
potential benefit will likewise offer a response about its potential. Utilizing the
accessible factual information, this examination can be done with practically no
issues.
Regarding past advances, the whole carried out chart should offer the response to
the evaluation of the dissected market potential.

19. Market Analysis: What is my objective market?
An objective market is an obvious gathering of clients. Markets can be found inside any
general class: customers, organizations, enterprises, establishments, and so forth
Shopper gatherings, for example, can be portrayed by socioeconomic, geology, way of
life, values, recreation, or occupation. Business clients can be characterized as far as
markets, items, the executives styles, conveyance channels or size. Esteem added item
marketing incorporates the end customers of your item/administrations and the
organizations who disseminate and offer your item to that buyer (the channel clients).
Start market arranging by obviously recognizing the market you need to target. This
could conceivably be the market you are working with now.

20. The thought is to contemplate your item to figure out what set of clients are going to
give your enterprise the income, benefit and development it needs. Begin with a
major piece of paper. Across the top compose a short portrayal of your item as at
present considered. Next compose your responses to the following inquiries:
• Who will purchase my item?
• For what reason will they purchase my item?
• What will they pay for my item?
• Where do they hope to track down this item?

21. At the point when you are done, venture back and consider what you have
realized.
Compose:
• a short, engaged portrayal of your objective market
• an evaluation of which parts of your business need to change in
request to draw in this market
• a rundown of what is engaged with rolling out required improvements.

22. Summary
In this topic you will be able to learn a decent method for deciding the potential
of a picked market is to check it with five essential advances. They permit to
decide qualities and shortcomings, foster possibilities and conceivable section
boundaries. An objective market is an obvious gathering of clients. Markets can
be found inside any general class: customers, organizations, enterprises,
establishments, and so forth Shopper gatherings, for example, can be portrayed
by socioeconomic, geology, way of life, values, recreation, or occupation.

23. Reference/Online Source:
Duke Fuqua
https://sites.fuqua.duke.edu/dukeven/new-venture-guidelines/evaluating-an-
opporunity/: Retrieved on March 12, 2022
Slide Team
https://www.slideteam.net/business_powerpoint_diagrams/five-stage-business-
opportunity-evaluation-process.html: Retrieved on March 12, 2022
Novascotia
https://novascotia.ca/thinkfarm/documents/fsheets/26-assessing-market.pdf:
Retrieved on March 13, 2022