IDENTIFICATION OF BUSINESS OPPORTUNITIES

1. +
IDENTIFICATION OF BUSINESS OPPORTUNITIES

2. +
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

3. +
STEPS IN ARRIVING AT
BUSINESS OPPORTUNITY
 Generating Ideas
 Screening Process
 Formulating the Concept of the Business

4. +
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

5. +
GENERATING IDEAS
 Source: Environment
 Taking macro-perspective or viewing larger environment where
business will be situated (looking at the Social, Technological,
Economic, Environmental, & Political)

6. +
WAYS OF SCANNING THE
ENVIRONMENT
Looking Closely at the market
 Demand & Supply Gap Analysis
 Import-Export Movement
 Product Substitution
 Forward-Backward Industry Linkages

7. +
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

8. +
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

9. +
MEANS OF COLLECTING
INFORMATION
 Accessing Networks
 Public Meetings, Trade Fairs & Fora
 Focused-Group Discussion
 Key People Surveys
 Publications
 In-Depth Interviews
 Usage & Awareness Studies

10. +
Screening Process
 Personal-Level Screening
 Firm-Level Screening

11. +
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

12. +
SCREENING PROCESS
 FIRM LEVEL SCREENING
 Market
 Technology
 Availability of Skills
 Availability of Raw Materials
 Financial/Capital Requirement
 Profitability
 Government Support Screening Process

13. +
FORMULATING THE CONCEPT
OF THE BUSINESS
Resource Analysis
 Resources Strengths Weakness
 Money
 Materials
 Machines
 Methods
 Manpower
 Management
 Moment (time)

14. +
 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.

15. +
FORMULATING THE CONCEPT
OF THE BUSINESS
 Environmental Analysis
The Environmental Analysis gives an indication whether the
business can survive or not.

16. +
Identifying Opportunities & Threats
in the Environment
 Socio-Cultural
 Technological & Technical
 Economic
 Natural
 Political
 Peace & Order
 Population Trends
 Government Program
 Global Environment

17. +
FORMULATING THE CONCEPT
OF THE BUSINESS
Personal Values Analysis
 represent your philosophy, guiding principles,
outlook and aspirations for your business (non-
monetary values)

18. +
ANY QUESTIONS?