BUSINESS-OPPORTUNITIES-1 (1)
BUSINESS OPPORTUNITIES
Prepared by: Helen A. Baesa
Introduction
This presentation outlines business opportunities and how to recognize and evaluate them for entrepreneurial success.
Biblical Perspective
Galatians 6:10: "Therefore, as we have opportunity, let us do good to all people, especially to those who belong to the family of believers." - Encourages the provision of opportunities to others.
What is Opportunity?
Defined as a situation that enables an entrepreneur to offer marketable products or services to interested buyers.
Types of Situational Factors
Product/Service Development:
Not Existing: Opportunity exists for a new product or service.
Market Failure: Existing products/services need improvement due to unsatisfied customers.
Emergence of Opportunity
Arises when:
Unfulfilled Needs/Wants: People recognize unmet needs.
Problem Discovery: Issues that a business can solve become apparent.
Entrepreneurs create solutions to fulfill these needs/wants or address these problems.
Opportunity Identification Process
Steps:
Search for Changes: Monitor environmental shifts.
Recognize Needs/Wants: Identify unmet demands.
Discover Opportunities: Analyze potential solutions.
What is a Business Opportunity?
Exists when:
There is potential to offer a new product/service in a market.
The offering aligns with customer demands and solves their problems.
Opportunity Identification Process
Involves searching and discovering business opportunities through:
Observing environmental changes.
Recognizing unmet customer needs.
Identifying problems and potential solutions.
Recognizing Needs and Wants
Needs: Basic requirements for survival.
Wants: Desires that go beyond basic needs.
When and Why Offer a Product/Service?
When: Changes in:
Political, legal, economic, social, and technological factors.
Why: These factors affect customer demand for products/services.
Identifying Business Opportunities
Involves:
Identifying customer needs/wants.
Scanning the environment.
Evaluating personal and community resources.
Screening potential opportunities.
Selecting and preparing a business plan.
Human Needs and Wants
Unlimited and diverse, influenced by societal affluence leading to increased entrepreneurial opportunities.
Entrepreneurs should adapt to changing customer demands.
Environmental Scanning (ES)
Definition: Analyzing surroundings to identify business opportunities.
Approaches:
Macro Perspective: Global or economic trends in sectors like agriculture.
Micro Perspective: Focused industry-specific opportunities (e.g., logging, furniture manufacturing).
Further Environmental Scanning Factors
Analyze:
Population structure, income levels, consumer tastes.
Import/export data, local resources, technological advancements.
Industrial linkages and development projects.
Current local issues and government policies.
Self-Evaluation for Entrepreneurs
Assess available skills, experiences, and resources for business development:
Skills, financial status, interests, network, and cultural values.
Resource Evaluation Factors
Key elements to evaluate include:
Market
Individual Interest
Capital
Skills
Supplier availability
Labor resources
Technology
Other Opportunity-Seeking Processes
Examine successful businesses.
Address problem areas.
Consider home-based business options.
Leverage resource linkages.
Market Research
Best method for evaluating business opportunities:
Steps:
Define the problem.
Conduct preliminary investigations.
Plan the research.
Gather data.
Analyze data.
Draw conclusions.
Implement and evaluate decisions.
Market Research Benefits
Helps identify:
Profitable markets, saleable products, available resources, potential risks, and consumer trends.
Optimal marketing strategies and business locations.
SWOT Analysis
Evaluates:
Strengths, weaknesses, opportunities, and threats in relation to a product or service.
STRENGTHS: Abundant raw materials, skilled workforce, quality service.
WEAKNESSES: High costs, poor quality, weak management.
OPPORTUNITIES: High product demand, favorable policy support, market gaps.
THREATS: Increased competition, high production costs, adverse regulations.
Business Location
Vital for success; consider:
Population trends, income, consumer characteristics, competition, transportation, and safety.
Selecting the Right Location
Ensures maximum potential benefits:
Leads to increased revenue, reduced costs, and minimized risks.
Product Life Cycle
Stages:
Introduction: Launch phase with customer acquisition challenges.
Growth: Product gains market notice.
Maturity: Product establishes itself in the market.
Decline: Necessity for product refresh or innovation to overcome competition.
Service Businesses
Companies that offer expert assistance or complete tasks for customer benefit.
Examples include appliance repair, tutoring, and consulting.
Trading Businesses
Earn revenue by selling merchandise.
Manufacturing Business
Utilizes components and materials to create finished goods.
Understanding Franchising
A franchise is a method of leveraging a perfected business model, granted by the franchisor to the franchisee, utilizing their trademark and business strategy.
Definitions of Roles in Business
Manufacturer: Designs and produces goods for the market.
Distributor: Buys products and resells them.
Dealer: Sells goods from manufacturers or distributors to end-users.
Types of Wholesalers
Rack Jobbers: Manage retailer stock and displays.
Drop Shippers: Sell products without handling inventory directly; arrange direct shipping from producers to buyers.
Contracting Definitions
Contracting/Subcontracting: Agreement to outsource work to a contractor within a specific timeframe.
Vending Machine Operating
Operators manage machines at specified locations; consider profitability and management requirements.
Ideation in Entrepreneurship
Importance: Essential for identifying viable business concepts.
Value-driven ideas should align with current and future market needs.
Common Methods of Idea Development
Involves recognizing needs, improving existing products, and staying aware of market trends.
Entrepreneurial Creativity
Creativity fuels innovation; foundational for developing marketable ideas.
Environmental Stimulators of Creativity
Factors that enhance creativity include:
Freedom, project management, adequate resources, encouragement, recognition, and challenge.
Conclusion
The presentation emphasizes the importance of opportunity recognition, market evaluation, and the entrepreneurial mindset in business development.
BUSINESS OPPORTUNITIES
Prepared by: Helen A. Baesa
Introduction
This presentation outlines business opportunities and how to recognize and evaluate them for entrepreneurial success. It incorporates a biblical perspective, particularly referencing Galatians 6:10, which encourages providing opportunities to others, especially to fellow believers.
What is Opportunity?
An opportunity is defined as a situation that enables an entrepreneur to offer marketable products or services to interested buyers. Opportunities often emerge when there are unfulfilled needs and wants in the market, or when problems are identified that a business can address. For instance, opportunities may arise from product or service development that necessitates new offerings or improvements in existing products/services due to market failure.
Opportunity Identification Process
The process of identifying business opportunities involves several steps: searching for environmental changes, recognizing unmet needs and wants, and discovering potential solutions. A business opportunity exists when there is potential for a new product or service, aligned with customer demands and capable of solving their problems. The identification process includes observing environmental changes, recognizing unmet customer needs, and identifying problems that can be addressed through innovative solutions.
Recognizing Needs and Wants
Needs are the basic requirements for survival, while wants are desires that extend beyond those necessities. Entrepreneurs should take advantage of these desires, particularly when changes occur in political, legal, economic, social, and technological factors that might influence customer demand for products and services. Identifying business opportunities thus requires an understanding of customer needs/wants, environmental scanning, and evaluating personal and community resources, as well as screening potential opportunities and preparing a business plan.
Human Needs and Opportunities
Human needs and wants are unlimited and diverse. They are influenced by societal affluence which in turn leads to increased entrepreneurial opportunities. Hence, entrepreneurs should be adaptable to changing customer demands.
Environmental Scanning (ES)
Environmental scanning is the analysis of surroundings to identify business opportunities, which can be approached from both MACRO and MICRO perspectives. The macro perspective involves observing global or economic trends in sectors such as agriculture, while the micro perspective focuses on industry-specific opportunities such as logging or furniture manufacturing. Factors analyzed include population structure, income levels, consumer tastes, import/export data, local resources, technological advancements, industrial linkages, government policies, and current local issues.
Self-Evaluation for Entrepreneurs
Entrepreneurs should assess their available skills, experiences, and resources for business development. Key elements for evaluation include market conditions, individual interests, available capital, skills, supplier availability, labor resources, and technology.
Opportunity-Seeking Processes and Market Research
In seeking new business opportunities, entrepreneurs should examine successful businesses, address problem areas, consider home-based business options, and leverage resource linkages. Moreover, market research is the best method for evaluating business prospects; it includes defining the problem, conducting preliminary investigations, planning the research, gathering and analyzing data, drawing conclusions, and implementing decisions. The benefits of market research include identifying profitable markets, saleable products, potential risks, and optimal marketing strategies.
SWOT Analysis
SWOT analysis is a framework used to evaluate strengths, weaknesses, opportunities, and threats related to a product or service. Notable strengths may include abundant raw materials or a skilled workforce, while weaknesses could be high costs or poor quality. Opportunities like high product demand or favorable policies should be balanced against threats such as increased competition or adverse regulations.
Business Location
Choosing a business location is vital for success and should consider factors like population trends, income, consumer characteristics, competition, transportation, and safety. Selecting the right location can lead to increased revenue and reduced costs.
Product Life Cycle
The product life cycle consists of four stages: introduction, growth, maturity, and decline. Each stage presents unique challenges and opportunities. It is crucial for businesses to recognize these stages to remain competitive and relevant in the market.
Types of Businesses
Different types of businesses serve various needs, including service businesses that provide expert assistance, trading businesses that generate revenue through sales, and manufacturing businesses that create finished goods.
Understanding Franchising
Franchising is a method of leveraging an established business model, where the franchisor grants the franchisee the right to use their trademark and business strategy.
Definitions of Roles in Business
Roles in business include manufacturers who design and produce goods, distributors who purchase and resell products, and dealers who sell goods to end-users. Types of wholesalers such as rack jobbers and drop shippers play distinct roles in the supply chain.
Contracting Definitions
Contracting or subcontracting involves outsourcing work to a contractor within a specific timeframe. Vending machine operators also manage profits and requirements associated with running machines at specified locations.
Ideation in Entrepreneurship
Ideation is essential for identifying business concepts. Entrepreneurs must generate value-driven ideas that align with current and future market needs. Common methods of idea development include recognizing needs and improving existing products.
Entrepreneurial Creativity
Creativity drives innovation, serving as a foundation for developing marketable ideas. Factors like freedom, project management, adequate resources, recognition, and challenge stimulate creativity and contribute to successful entrepreneurship.
Conclusion
In summary, the presentation emphasizes the importance of recognizing opportunities, conducting thorough market evaluations, and maintaining an entrepreneurial mindset for successful business development.
Ang lesson tungkol sa business opportunities ay nagbibigay-diin sa kahalagahan ng pagkilala at pagsusuri ng mga potensyal na merkado para sa tagumpay ng isang negosyo. Ipinapakita nito ang kahalagahan ng pag-unawa sa mga pangangailangan ng customer at mga environmental factors, na maaaring magdala sa pagtukoy ng mga bagong pagkakataon sa negosyo. Ang proseso ng pagkilala sa mga oportunidad ay may kasamang sistematikong hakbang, kabilang ang market research at SWOT analysis, na tumutulong sa mga entrepreneur na suriin ang kanilang mga lakas at kahinaan kumpara sa mga banta sa kompetisyon. Bukod dito, itinatampok ng lesson ang pangangailangan ng self-evaluation para sa mga entrepreneur upang mai-align ang kanilang mga kasanayan at resources sa mga pangangailangan ng merkado. Sa huli, ang pagiging adaptable at pagiging malikhain ay mga mahalagang katangian para sa matagumpay na pag-navigate sa nagbabagong business landscape.