MODULE-2-ENTREP-PROCESS-SEEKING-AN-OPPORTUNITY.pptx

MODULE-2-ENTREP-PROCESS-SEEKING-AN-OPPORTUNITY.

1. Entrepreneurial process

2. The Entrepreneurial Process It is a step-by-step procedure in establishing any kind of business that an entrepreneur has to undergo . It is composed of 4 aspects .

3. Opportunity Spotting and Assessment the beginning of the process. considered as the most difficult aspect. the entrepreneur takes note of the interesting trends in their environment.

4. Major sources of opportunities : Consumers Problems in the environment Problems encountered by co-entrepreneurs New trends Processes Developments in the environment

5. The entrepreneur s’ toughest job is : to carefully asse s s the opportunity through estimation of opportunity length, capitalization required, threats, profitability, and calculation of real and perceived value. to a sses s if the opportunity is aligned with their personal goals and attributes and think in advance how to position their product in the market.

6. Minor sources of opportunities : Feedback from distribution or business partners such as : Retailers Wholesalers Manufacturers Technical people

7. 2. Developing a business plan Entrepreneurs should formulate a business plan when they have already spotted and assessed the opportunities for market. The business plan will be the core guide and direction in calculating the resources needed, assessing how to obtain these resources efficiently and running the business sustainably.

8. 3. Determining the capital needed it is mandatory in the entrepreneurial process to calculate the resources needed to establish the business and compare this against the entrepreneur’s current resources. include those items that are considered as the real needs in venture creation.

9. 4. Running the business the part where the entrepreneur should use the resources for the venture. the business plan should already be implemented. the entrepreneur should have a control and monitoring system to serve as a check and balance of the formulated plans.

10. OPPORTUNITY SPOTTING AND ASSESSMENT DEVELOPING A BUSINESS PLAN DETERMINING THE CAPITAL NEEDED RUNNING THE BUSINESS Evaluate the identified opportunity Come up with a business description and analysis Calculate the intrinsic and extrinsic capital needed Practice leadership as a way of life Conceptualize and measure the opportunity Perform industry analysis Calculate the existing capital Recognize critical success factors Do cost-benefit analysis of the opportunity including risk analysis Come up with the marketing plan Calculate the difference between the needed capital and the existing capital. Choose the most cost-efficient suppliers or service providers Identify existing and foreseeable problems and issues Match the opportunity with the entrepreneur’s skills and objectives Prepare the operations plan including the organizational plan Develop contact and relationship with suppliers and service providers Employ risk-mitigating controls and monitoring systems

11. OPPORTUNITY SPOTTING AND ASSESSMENT DEVELOPING A BUSINESS PLAN DETERMINING THE CAPITAL NEEDED RUNNING THE BUSINESS Scan the strengths and weaknesses of competitors Come up with the financial plan Devise an expansion / sustainability strategy Identify strategies and tactics Perform monitoring and control

12. SCANNING THE MARKETING ENVIRONMENT CONCEPTS AND IDEAS

13. THE 3S OF OPPORTUNITY SEEKING SCREENING SEIZING

14. S1: SEEKING THE OPPORTUNITY The first step yet the most difficult process of all due to number of options the entrepreneur will have to choose from. Be innovative Be curious to discover new / different ideas that will work in the marketplace.

15. MACRO-ENVIRONMENTAL SOURCES STEEPLED - Sociocultural, Technological, Economic, Environmental, Political, Legal, Ethical, and Demographic factors. INDUSTRY NEW DISCOVERY OR KNOWLEDGE FUTURISTIC OPPORTUNITIES

16. INDUSTRIES Source of current trend on what is happening in the industry ; be full y acclimated on the industry if he/ she wants to establish the business

17. New Discovery / KNOWLEDGE New trends that can be the core business model of new venture. Ex : online selling

18. FUTURISTIC OPPORTUNITIES PROJECTED NEW OPPORTUNITIES THAT CAN AFFECT THE NEW BUSSINESS WHILE IT IS RUNNING.

19. MICROMARKET

20. Micromarketing A strategy used to target a small segment of consumers with specific needs for products in the market. In micro marketing, all advertising efforts are strongly focused on a small group of highly targeted consumers.

21. 1. Consumer preferences, interests, and perception These are current needs and wants of the potential customers that should be discovered right away by a building entrepreneur. A need is recognized when a customer believes that there is a difference between his or her current situation versus his or her desired condition . A want is recognized when a customer believes that there is a specific product or service that can perfectly suit the need .

22. 2. Competitors Recognizing and understanding potential competitors will aid the entrepreneur to develop a product or service that is unique and will surely stand out on the competition. Differentiate your offerings and be unique with the goal of creating tremendous value for the users you serve.

23. 3. Unexpected opportunities from customers Oftentimes, the most brilliant ventures come from the most unexpected opportunities . Existing problems often give rise an unexpected opportunity .

24. 4. Irritants in the marketplace such as deterrents, problems, complaints, and delays Entrepreneurs see opportunities in situations where there is a recurring problem or sometimes when there is no more hope in solving problem .

25. 5. Talents , hobbies, skills, and expertise Business opportunities do not just come from outside forces but also within the entrepreneur. The entrepreneurs’ talent, hobbies, skills, and expertise can be good source of opportunity .

26. 6. Location Often, entrepreneurs just have to look at their ecosystem and they will be able to spot a business opportunity right away .

27. METHODS OF GENERATING NEW IDEAS Focus group discussion Brainwriting / Internet Brainstorming Brainstorming Problem Inventory Analysis

28. Focus group discussion A moderator handles a very open, free flowing, and in-depth discussion with a group of people who can provide insightful ideas about a new product or service that will fill a market need.

29. Focus group discussion Example : One company interested in the electronics market received its new concept “ colour accurate mobile screen” from focus groups of twelve persons from various places. The concept was developed into a new product that was a market success. The basis of the advertising message came from comments of focus group members.

30. Brainstorming Similar to FGD An activity that allows the participants to share creative ideas using the following rules: No destructive criticism or judgement is allowed. Wilder ideas are accepted. More ideas are preferred, and Improvement of others’ ideas is allowed Fun discussion with lenient rules

31. Brainstorming Example: A large company of phone used brainstorming to develop a wireless charger that would provide a high-quality product to its clients. The brainstorming among its executives focused on the characteristic of the market, the design of the charger, and the promotional value of the wireless charger for the company. Once they are done, a representative will inform the other workers about their new product.

32. Brainwriting / Internet Brainstorming Exactly the same as brainstorming, except that the channel used is not face-to-face, but in writing online. Results of brainwriting / Internet Brainstorming usually take longer, as the answers depend on availability of the participants in answering the questioner online.

33. Brainwriting / Internet Brainstorming Example : A group with six members will be given a blank card with six rows and three columns. On the top of the grid they will write a problem . Each group members generates and writes down three ways to solve the problem during a five-minute period. The form is passed to the next person, who will write three new ideas, and so on, until each form has passed all participants.

34. Problem Inventory Analysis Similar to FGD except that the participants are already given an inventory of product or service problems . The participants will just identify from the list given the compelling problem(s) of a potential product or service instead of generating the ideas from them.