Opportunity spotting and Developing a business plan Determining the capital Running the business

Assessment needed
1. Evaluate the identified Come up with the business Calculate the intrinsic and Practice leadership as way
opportunities description and analysis extrinsic capital needed of life
2. Conceptualize and Perform industry analysis Calculate the existing Recognize critical success
measure the opportunities capital factors
3. Identify the perceived Come up with the marketing Calculate the difference Identify the existing and
value of the opportunity to plan between the needed foreseeable problems and
the company capital and the existing issues.
capital. Choose the
efficient cost-efficient
suppliers or service
providers.
4. Do cost-benefits analysis Prepare the operations plan Develop contact and Employ risk-mitigating
of the opportunity including organizational plan relationship with suppliers controls and monitoring
including risk analysis and service providers systems
5. Match the opportunity Come up with the financial Device an expansion/
with the entrepreneur’s plan sustainability strategy
skills and objectives
6. Scan the strength and Identify the strategies and Perform monitoring and
weaknesses of competitors tactics control

Scanning the environment Marketing

The starting point of any new venture that involves understanding and knowing the
intricacies of the environment.
An entrepreneur can recognize various opportunities and at the same time understand
thoroughly the arena where the business will operate.

Seeking, Screening and Seizing Opportunities

The starting point of any new venture that involves understanding and knowing the
intricacies of the environment.

Seeking Opportunities
The first step and is the most difficult process of all due to the number of options that
entrepreneur will have to choose from. It involves the development of new ideas from various
sources:

Macro environmental sources

Micro-market

Sources of Ideas:
Macro environmental sources
1. STEEPLE Analysis
2. Industry
3. New discovery or Knowledge
4. Futuristic Opportunities

Micro-market
1. Consumer preferences, interest, and perceptions
2. Competitors
3. Unexpected opportunities from costumers
4. Talents, hobbies, skills, and expertise
 MACRO ENVIRONMENTAL SOURCES
STEEPLE Analysis

SOCIAL TECHNOLOGICAL ECONOMICAL

1. Demographics
2. Population Group
3. Age distribution
4. Education
5. Cultural differences
6. Lifestyle trends
7. Health and Welfare
8. Career Attitudes
1. Technological Growth
2. New Innovating
3. Skilled resources
4. Automation
5. Technology Awareness
6. Research
1. Economic Growth
2. Exchange Rates
3. Interest Rates
4. Inflation
5. Purchasing Power
6. Unemployment Rates
7. Income
8. Investments Opportunities

ENVIRONMENT POLITICAL LEGAL ETHICAL

1. Weather 1. Government Policy 1. The Court System 1. Bribery
2. Climate Change 2. Taxation 2. Employment Law 2. Intellectual Property
3. Environmental Policy 3. Political Stability 3. Discrimination Law 3. Reputation
4. Atmospheric Emissions 4. Foreign Trade 4. Anti-trust Law 4. Business Ethics
5. Trade Restrictions 5. Trade Unions 5. Confidentiality
6. Consumers Protection
7. Health and Safety
8. Copyright Law

Industry as one of new ideas

- There are the current trends in the industry where you want to enter.

New discovery or Knowledge

- New trends that can be the one business model of the venture.

Futuristic Opportunities
- These are projected by new opportunities that can be possible affect new business while it is
running.

THE MICRO-MARKET

CONSUMERS, PREFERENCES, INTEREST, AND PERCEPTIONS

- These are the current needs and wants of potential costumer’s that should be discover right
away by a budding entrepreneur.

Competitors
- Recognizing and understanding potential competitors will aid the entrepreneur to develop a
product or service that is unique and will surely stand out for the competition. The 4ps will
competitively positioned if the entrepreneur is familiar with his or her competitors.

Unexpected opportunities form costumers

- The most brilliant venture comes from the most unexpected opportunities. It may happen in
unlikely places, and with unlikely people. Existing problems often rise to unexpected
opportunities.
Talents, Hobbies, Skill and Expertise
- Entrepreneur’s talents, hobbies, skill or expertise could be source of business opportunities.

Irritants in the marketplace such as deterrents, problem complains and delays.

Location
- Entrepreneur looking at the area where they belong to often time given fresh ideas.

Methods in generating ideas

1. Focused group discussion – a moderator handles a very open free flowing 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.

2. Brain storming – an activity that allows the participants to share creative ideas using the
following rules:
A. No destructive criticism or judgment is allowed
B. Wilder ideas are accepted
C. More ideas are preferred
D. Improvement of others ideas is allowed

3. Brain writing on the internet Brain storming – exactly the same as brainstorming but with
the usage of media platforms; writing it online. The result of brain writing or internet
brainstorming usually takes longer, as answers depends on the availability of the participants
in answering the questionnaires online.

4. Problem inventory analysis – this is similar to focus group discussion except the participants
are already given an inventory of product or service problems. The participants will just
identify from the list given the compelling problems or a potential product or service instead
of generating the ideas from them.

Macro Environmental sources: Sample findings for STEEPLE Analysis

1. Socio-cultural factors – represents the general view of a locality’s traditions, costumes,
beliefs, norms, and perceptions which affect the person’s behavior and reaction to marketing
and selling activities. Below are some of the sociocultural factors.
A. Health consciousness
B. Education Level
C. Attitude towards imported goods and services
D. Attitude towards the person’s lifestyle
E. Attitude towards product quality and customer service
F. Attitude towards saving and investing
G. Emphasized in safety
H. Buying habits
I. Religion and Beliefs

2. Technological factors – composed of innovations of an existing technology or an invention

of a new one. Entrepreneurs should always be up-to-date with the technological changes, as
they catalysts in improving a product or service or replacing them entirely. They should take
note of the following technological factors:
A. Basic infrastructure level
B. Rate of technological change
C. Spending on research and development
D. Technology incentives
E. Legislation regarding technology
F. Communication infrastructure
G. Access to newest technology
H. Internet infrastructure and penetration

3. Economic factors – these are factors that directly affect any business venture. Below are
economic factors that entrepreneurs should take note.
A. Growth rates
B. Inflation Rates
C. Interest Rates
D. Exchange Rates
E. Unemployment Trends
F. Labor Costs
G. Stages of Business Cycle
H. Trade flows & patterns
I. Level of Consumer’s Disposable Income
J. Monitory Policies
K. Fiscal Policies
L. Price Fluctuations
M. Stock Market Trends