Identifying the business opportunities that what we going to talk about in this article. Hope you enjoy it.
Ideas for new businesses are easy to identify but difficult to assess. The Entrepreneurship is the identification and exploitation of opportunities that have not yet been exploited.
A good opportunity has the potential to create value for customers. Another way of looking at it is describing the problem or “pain” of the client, which represents how much is that customer need for a solution to their “pain”, need, or problem. A major problem, need or “pain” has the highest value opportunity to provide a solution to that client. Obviously, more of clients who share the same problem, the more value is the solution.
The first role of the entrepreneur is to identify and select the opportunity appropriate. El entrepreneur is usually a person dreamer, visionary, who engages in a creative process of identifying opportunities and evaluate the opportunity is selected which has the highest probability of market success. The key question is how to evaluate and select the right opportunity? The goal should be to seek an opportunity in an industry that the entrepreneur knows and has a long growth potential term.
The opportunity analysis includes assessment of alternatives. This means that other opportunities will be discarded in the process.
Consider the following situation:
A woman of 28 years receives a bonus of $ 20,000. What to do with the money? should invest in a mutual fund, use it as soon for purchase of a property, use it to start graduate school, leave their jobs and start my own business? It could be analyzed based on profit mutual fund anticipated a 10% gain in graduate studies 12% growth in their own business by 11%, gain a owned by 9%. If you take satisfaction as a primary consideration staff of a college degree, this would be the alternative selected by some. Others may give more weight to the independence that means the having a business and would opt for this alternative.
Therefore, there is no magic formula for selecting an opportunity. Everything depends on many factors. For many entrepreneurs, the primary consideration is to compare the current employment opportunity and growth potential in it.
One of the biggest risks to a person who considers starting his company is the general tendency of being too trusting and expects things happen as well or better than expected. It is important to analyze market, implementation and product differentiation. Most the entrepreneurs follow a basic process involves five steps:
- Skills – are the skills, knowledge and experience entrepreneur are consistent with the opportunity?
- New – Does the product or service qualities that make significantly new and different? Does it create significant value added for customer? Is it enough for a customer want and pay for the product?
- Resources – the entrepreneur can attract financial support, physical and human consistent with the size of the project?
- ROI – Can the product be manufactured at a cost that can produce a profit? Does the Return is consistent with the risk involved?
- Commitment – does the entrepreneur is sufficiently committed to the project? Does he has a passion for the same?
The purpose is to rule out less promising opportunities and pursue to those that they are worth it. In general, it should discard those opportunities in markets or industries in which the entrepreneur has little experience. The features of every opportunity are to dictate the analytical efforts and levels of investigation necessary to make a decision.
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