5. Entrepreneurial Mind Frame,
Heart Flame, and Gut Game
The entrepreneurial mind
frame allows the entrepreneur
to see things in a very positive
and optimistic light in the
midst of crisis or difficult
situations.
6. The entrepreneurial heart flame,
also known as surging passion,
refers to the entrepreneur’s
fulfillment in the act and process
of discovery.
7. The entrepreneurial gut game, also
known as intuition, refers to the
ability of the entrepreneur to
sense without using the five
senses.
8. Sources of Opportunities
Macro Environmental Sources
of Opportunities
1. Socio-cultural Environment
2. Political Environment
3. Economic Environment
4. Ecological Environment
5. Technological Environment
9. Sources of Opportunities
Industry Sources of
Opportunities
Participants in and industry include:
1. Rivals or competitors in a particular type of
business. True rivals or competitors are those
competing for the same or similar markets.
2. Suppliers of input to rivals as well as suppliers of
machinery and equipment, suppliers of manpower
and expertise, and supplies of merchandise.
10. 3. Consumer market segments being
served by rivals or competitors.
4. Substitute products or services,
which customers shift or turn to.
5. All other support and enabling
industries.
11. Sources of Opportunities
Micromarket
Micromarket refers to the specific target market
segment of a particular enterprise. These are
the target customers that represent the
immediate customers of an enterprise, meaning
those who are currently buying the goods or
services offered by the enterprise and its direct
competitors. It likewise pertains to a clearly
defined location or specific customer group that
an enterprise wishes to serve.
12. Sources of Opportunities
Consumer Preferences, Piques,
and Perceptions
Consumer preferences refer to the tastes of particular
groups of people. In contrast, consumer dislikes refer to
the things that irritate customers. Either way, the
entrepreneur can explore opportunities brought about by
consumer preferences or dislikes.
There are times when the product is not changed by the
enterprise but what changes is the way consumers
perceive the product.
13. Sources of Opportunities
Other Sources
Another potential source of opportunity is the
entrepreneur’s own set of skills or expertise, or hobby.
New knowledge as well as new technology can be the
source of highly innovative opportunities.
1. Customer preferences change over time.
2. People’s tastes in clothes, music, shoes,
entertainment, dance, sports, hobbies, and even
careers have evolved over the years.
3. What piques customers is a great source of
opportunities.
4. Before the customer is won over, there is first a
battle for the mind. Next, there is a battle for the
heart. Finally, there is a battle for the wallet.
14. Sources of Opportunities
Other Sources
5. The longer the customer wants to use the
product, the greater the chances of creating
lasting loyalty.
6. Opportunities abound in shaping consumer
perceptions or occupying spaces in their minds or
places in their hearts that have not yet been
filled.
15. Sources of Opportunities
Other Sources
7. New inventions, new systems and work processes,
new insights about the human psyche, new
applications for old knowledge, new revelations
about how the physical world works, new
interpretations, new combinations based on the
convergence of previous technologies, new
outlooks about how life should be led, and a host
of other new things are tremendous sources of
opportunities.
8. Determining personal preferences and
competencies lay the foundation for a new
business venture.
16. Sources of Opportunities
Other Sources
9. Unexpected occurrences in both the external and
internal environment of the enterprise indicate
that significant changes are happening and
opportunities are sprouting.
18. The Personal Screen
In screening opportunities, the entrepreneur first has to consider
his or her preferences and capabilities by asking three basic
questions:
1. Do I have the drive to pursue this business opportunity to
the end?
2. Will I spend all my time, effort, and money to make the
business opportunity work?
3. Will I sacrifice my existing lifestyle, endure emotional
hardship, and forego my usual comforts to succeed in this
business opportunity?
If “YES” is your answer to all of the above, then you can begin your
earnest pursuit of that opportunity.
20. The 12 Rs of Opportunity
Screening
1. Relevance to vision, mission, and objectives of the entrepreneur.
The opportunity must be aligned with what you have as your
personal vision, mission, and objectives for the enterprise you
want to set up.
2. Resonance to values. Other than vision, mission, and objectives,
the opportunity must match the values and desired virtues that
you have or wish to impart.
3. Reinforcement of Entrepreneurial Interests. How does the
opportunity resonate with the entrepreneur’s personal interests,
talents, and skills?
4. Revenues. In any entrepreneurial endeavor, it is important to
determine the sales potential of the products or services you want
to offer. Is there a big enough market out there to grab and
nurture for growth?
21. The 12 Rs of Opportunity
Screening
5. Responsiveness to customer needs and wants. If the opportunity
that you want to pursue addresses the unfulfilled or underserved
needs and wants of customers, then you have a better chance of
succeeding.
6. Reach. Opportunities that have good chances of expanding
through branches, distributorships, dealerships, or franchise
outlets in order to attain rapid growth are better opportunities.
7. Range. The opportunity can potentially lead to a wide range of
possible product or service offerings, thus, tapping many market
segments of the industry.
8. Revolutionary Impact. If you think that the opportunity will most
likely be the “next big thing” or even a game-changer that will
revolutionize the industry, then there is a big potential for the
chosen opportunity.
22. The 12 Rs of Opportunity
Screening
9. Returns. It is a fact that products with low costs of production and
operations but are sold at higher prices will definitely yield the
highest returns on investments. Returns can also be intangible;
meaning, they come in the form of high profile recognition or
image projection.
10. Relative Ease of Implementation. Will the opportunity be
relatively easy to implement for the entrepreneur or will there be
a lot of obstacles and competency gaps to overcome?
11. Resources Required. Opportunities requiring fewer resources from
the entrepreneur may be more favored than those requiring more
resources.
12. Risks. In an entrepreneurial endeavor, there will always be risks.
However, some opportunities carry more risks than others, such as
those with high technological, market, financial, and people risks.
24. Factors That Are Contained in a
Pre-feasibility Study
• Market potential and prospects
• Availability and appropriateness of technology
• Project investment and detailed cost estimates
• Financial forecast and determination of financial
feasibility
25. Things to Consider in Writing the
Feasibility Study
1. A more in-depth study of market potential to
ensure that the business proposal will reach the
forecasted sales figures
2. Proof that the product or services being offered
has the right design, attributes, specifications
and preferred features
3. Proof that the entrepreneur and his or her team
have the necessary experience, skills, and
capabilities to maximize the venture’s chances
of success
26. Things to Consider in Writing the
Feasibility Study
4. Legal visibility
5. More detailed costing on the different assets
and more justification for the production and
operating expenses
6. More thorough analysis of the technology and
its sustainability
28. The question for the entrepreneur
in Opportunity Seizing is…
“Will I be able to manage, to my advantage,
the critical success factors and avoid the
critical failure factors?”
29. Key Points in Going about the
“Questioning” to Craft a
Positioning Statement
1. What are the main customer segments?
2. What are the different product attributes and
features of each of the competitors?
3. What are the existing marketing practices of the
various competitors?
4. What are the market preferences of consumers
when it comes to the products being offered?
32. Options or Directions in Coming up
with a Product/Service Concept
1. The first is to create a concept similar to the winning
products in the marketplace and ride with the obvious
market trends
2. The second is to find a market niche that has not been
filled by the competitors.
3. The third is to conceptualize a product in a positioning
category where the participants are rather weak.
4. The fourth is to conceptualize a product that would
change the way customers think, behave, and buy, thus
making existing products “obsolete” and “old-fashioned.”
33. Designing, Prototyping, and
Testing the Product
Designing means that the entrepreneur must render the
concept and translate it into its very physical and very real
dimensions (measurement). This entails building a prototype
of the product that will be ready for actual testing by the
entrepreneur and then, later on, subject to testing by
potential customers through focus group discussions (FGD),
surveys, product demonstration sessions, and the like.
34. Designing, Prototyping, and
Testing the Product
Designing means that the entrepreneur must render the
concept and translate it into its very physical and very real
dimensions (measurement). This entails building a prototype
of the product that will be ready for actual testing by the
entrepreneur and then, later on, subject to testing by
potential customers through focus group discussions (FGD),
surveys, product demonstration sessions, and the like.
Notes de l'éditeur
Tell the students that essential to an entrepreneur’s opportunity seeking are the entrepreneurial mind frame, heart flame, and gut game.
Before proceeding, tell the class that after opportunity seeking comes the rigorous process of Opportunity Screening. Because of the many opportunities possible for the entrepreneur, it is important to come up with a short list of a few very promising opportunities, which could be scrutinized in detail.
Tell the class that, at the simplest level, the entrepreneur may want to make a risk-return grid similar to the one shown on the slide.
Tell the class that the 12 criteria discussed on the previous slides can be better managed if quantified and formed into a matrix to help the entrepreneur concretize the evidence that the chosen opportunity (or opportunities) is well worth pursuing.
Tell the students that, a earlier mentioned, the ultimate goal of doing the opportunity screening matrix is to narrow down the many opportunities into one or two most attractive ones. The next step is to conduct a pre-feasibility study to ascertain the viability of the opportunity. The idea is to focus on a few key items that could make or break the business concept.
Tell the students that, after Opportunity Seeking and Screening, the entrepreneur is ready for Opportunity Seizing, the final stage. At this stage, the entrepreneur must be able to determine the critical success factors that enable other players in the same industry to succeed while, at the same time, be vigilant about those factors that cause other businesses to fail.
Explain to the students that in crafting a positioning statement, the entrepreneur is advised to look at other competitors (or substitutes) in the marketplace. Going through the process of questioning, the entrepreneur will be able to come up with each of the competing products’ Main Value Proposition (MVP) and from there, work on his own positioning. The key points presented on the slide can help out the entrepreneur on how to go about this ‘questioning.’
Explain to the students that on the slide are examples of the grids for competitor analysis that the entrepreneur can follow. Grid 1 arranges the products according to their quality levels along the horizontal plane and according to their prices along the vertical plane. Grid 2 arranges the products according to their sales volume along the vertical plane and according to their main value propositions in the horizontal plane.
Tell the students that the table on the slide presents a more complex analysis of the competitors’ products which addresses key questions such as information on the customer segment being served, product attributes and features, marketing practices, market performance, strengths and weaknesses, as well as the main value proposition of these competitor products.
Tell the class that from conceptualization, the entrepreneur proceeds to the design, prototyping, and testing of the concept.
Tell the class that from conceptualization, the entrepreneur proceeds to the design, prototyping, and testing of the concept.
