Unit_3._WS_Business_Ideas_and_Opportunities_1.pptx.pptx

This Explain more about Bussnes Ideas and opportunities, in Day and every day Situation

1. BUSINESS IDEAS A ND OPPORTUNITIES W. Saguga , MBA 2021

2. OBJECTIVES At the end of the presentation learners should be able to: Define business idea and business opportunities. Identify business opportunities Describe the development of a business idea

3. OBJECTIVES CONT… Explain the importance of evaluating business opportunities. Describe the process of business evaluation Describe entrepreneurship behavior.

4. PART ONE

5. BUSINESS IDEA

6. BUSINESS IDEA Is a concept that can be used for financial gain that is usually centered on a product or service that can be offered for money.

7. CHARACTERISTICS OF BUSINESS IDEA Innovative Aim at improving existing services/products to grow and become market leader New way of doing something

8. CHARACTERISTICS OF BUSINESS IDEA CONT… Unique: Makes the product/service stand out from its competitors whether through pricing, quality, customer care or innovation.

9. CHARACTERISTICS OF BUSINESS IDEA CONT … Problem solving: Fundamental to the idea Providing solution

10. CHARACTERISTICS OF BUSINESS IDEA CONT… Profitable: Is the ability to generate earnings compared to costs over a certain period of time.

11. BUSINESS OPPORTUNITIES

12. BUSINESS OPPORTUNITIES An opportunity to generate income through as a business or product/service offering May involve sale or lease of any product/service

13. TYPES OF BUSINESS OPPORTUNITIES Franchising One of the most common business opportunities. It involves having an opportunity to start your business from already set up business-around an existing brand e.g SPUR, TUNZA , KFC Pertains to business’s entire brand and operations build around a coordinating / mother entity

14. TYPES OF BUSINESS OPPORTUNITIES CONT… Distribution/Distributorship This business model involves an entrepreneur selling services and products of another company. There is profit sharing along the distribution chain eg Donna’s eggs, Airtel

15. TYPES OF BUSINESS OPPORTUNITIES CONT… Marketing Common form; networking marketing These are entrepreneurs who put plans together that can be used to recruit fellow marketers. Whenever a marketer sells a product every distributor receives a small percentage of the profit. Eg Super life, AIM global,

16. TYPES OF BUSINESS OPPORTUNITIES CONT… Licensing It offers the newbie entrepreneurs with the license requiring to handle a brand name or trademark. Related to Franchising but different Pertains to specific registered trademarks Eg C ocacola , P epsi

17. IDENTIFICATION OF SMALL BUSINESS OPPORTUNITIES

18. IDENTIFICATION OF SMALL BUSINESS OPPORTUNITIES Listen to your potential clients Listen to their needs, wants, challenges and frustrations. What are their preferences Have they used similar services or products before? What did they like and dislike?

19. IDENTIFICATION OF SMALL BUSINESS OPPORTUNITIES 2. Listen to your customer Listen to what they are saying about your product/services. What are the frequently asked questions, frustrations, suggestions, feedback and complaints?

20. IDENTIFICATION OF SMALL BUSINESS OPPORTUNITIES 3. Look at your competitors Do a competition analysis to see how others are doing and more importantly not doing. What they are failing at

21. IDENTIFICATION OF SMALL BUSINESS OPPORTUNITIES 4. Look at industry trends and insight Subscribe to industry publications, join relevant associations, set goggle alerts for key industries.

22. DEVELOPMENT OF A BUSINESS IDEA

23. DEVELOPMENT OF A BUSINESS IDEA It starts with generating ideas. Think big and write down any idea. Then Explore the idea(s): Is your idea truly original: Does it capture a new market something no one else is doing may be more profitable than competing similar product or service.

24. DEVELOPMENT OF A BUSINESS IDEA 2. Will people be willing to pay for your product or services: Great ideas can only translate into a successful business if people are willing to pay for the product or service.

25. DEVELOPMENT OF A BUSINESS IDEA 3. Who are your target customers You need to identify the target market for your product. Are you going to sell to individuals, other businesses or government. Identify characteristics of people who have shown interest in your products/services. Once identified; what challenges do they have that will be solved with your products What are their expectations regarding your product

26. DEVELOPMENT OF A BUSINESS IDEA 4. Will you be able to compete with existing companies? Who else is selling similar products and where? Will you be able to compete with the product that is already on the market. Determine why the customers will buy from you instead of other people?

27. DEVELOPMENT OF A BUSINESS IDEA 5. How will you produce the product/service you are going to offer Manufacturing or outsourcing

28. DEVELOPMENT OF A BUSINESS IDEA 6. How will you distribute your products/services Start your own company or search for an existing company to sell your products Go-to market strategy

29. DEVELOPMENT OF A BUSINESS IDEA 7 . How will you promote your services or products? How will customers hear and find your products?

30. DEVELOPMENT OF A BUSINESS IDEA 8 . Are there any government restrictions or obligations that could limit the idea?

31. DEVELOPMENT OF A BUSINESS IDEA 9 . What resources do you need to get your business started You need to have a business plan- know how much money you need to start your business. Review your eligibility for financing the business

32. DEVELOPMENT OF A BUSINESS IDEA 10. Where can you go for evaluating and clarifying your business idea You need to get help along the way before implementing the plan.

33. PART TWO

34. Measures of Evaluating B usiness O pportunities

35. Measures of evaluating business opportunities Business opportunities can be evaluated in many ways We will focus on analysis of the business environment as means of evaluating the business opportunities Tools/models we will focus on: PESTEL SWOT

36. PESTLE framework or tool used to analyze and monitor the macro-environmental (external business environment) factors that have an impact on a business Usually done before SWOT

37. PESTLE Political Economical Social Technological Environmental Legal

38. SWOT ANALYSIS A SWOT analysis is a simple, yet powerful tool to help you develop your business Can be used whether you’re building a startup or guiding an existing company. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

39. SWOT ANALYSIS Strengths and weaknesses are internal to your company Things that you have some control over and can change . You can optimize strengths and work on weaknesses Examples include who is on your team, your patents and intellectual property, and your location.

40. SWOT ANALYSIS Opportunities and threats are external Things that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples include competitors, prices of raw materials, and customer shopping trends.

41. SWOT ANALYSIS-Example

42. IMPORTANCE OF EVALUATION OF BUSSINESS OPPORTUNITIES

43. IMPORTANCE OF EVALUATION Provides insight on external environmental conditions that impact your business Encourages to promotes strategic thinking. Provides insight for valuable business opportunities and makes you more alert to potential threats.

44. IMPORTANCES OF EVALUATION Creates a better understanding of your business- forced to consider crucial aspects of your business Helps you avoid strategic surprises that can negatively affect profitability

45. EVALUATING FACTORS SURROUNDING BUSINESS OPPORTUNITIES

46. EVALUATING FACTORS SORROUNDING BUSINESS OPPORTUNITY Market size Appraised during market research Find out if there is a market and how big the market is. Should be sure that the demand is there.

47. EVALUATING FACTORS OF BUSINESS OPPORTUNITY 2. Business relationships Asses your relationship with the potential investors or customers-cultivate rlps When you have more relationships, the opportunity is likely to run smooth.

48. EVALUATING FACTORS OF BUSINESS OPPORTUNITIES 3. Ability to manage cash flow Is there start up funding for the business Figure out how the cash flow will be managed Make sure the business is likely to sustain itself after a period of time .

49. EVALUATING FACTORS OF BUSINESS OPPORTUNITIES 4. Management skill sets What are the skillsets of those involved? Are they appropriate and diversified? Do you trust competences that will make the opportunity a success.

50. EVALUATING FACTORS OF BUSINESS OPPORTUNITIES 5. Passion and persistence Are you working with people who will get the job done Do you trust that they have the passion to make things happen. Need to push though things even when times are getting dark.

51. ENTREPRENEURSHIP BEHAVIOUR

52. ENTREPRENEURSHIP BEHAVIOUR Is a behavior desiring to undertake innovations and change the status quo.

53. CHARACTERISTICS OF ENT BEHAVIOR 1 . Invention and creation The act of creating something new 2 . Initiative behavior Innovators who carry out new contributions to initiate and accelerate the process of economic development.

54. CHARACTERISTICS OF ENT BEHAVIOR 3 . “ Challenge accepted” mindset Should understand the problem and evolve appropriate strategies for overcoming the problem. 4 . Persuasive behavior Convince others to do the work the way you want it to be done It is not physical but intellectual force used to convince others.

55. ENTREPRENEURSHIP BEHAVIOUR 5 . Effective monitoring They e nsure regular monitoring of the work so that the goals of the organization are achieved in the best possible manner.

56. ENTREPRENEURSHIP BEHAVIOUR 6 . Persistent Is never dishearted by failure. 7 . Looking for opportunity Always searching for opportunity and ready to exploit it in the best interest of the organization

57. ENTREPRENEURSHIP BEHAVIOUR 8 . Quality conscious They don’t believe in moderate or average performance. They believe in excellence Set high quality standards for themselves and then put in their best for achieving these standards.

58. Qs??