Program and Policies of Enterprise Development

Business Opportunity

Module 03 - Evaluating Business Opportunity

At the end of this module, you will be able to:

1. Learn the opportunity for Entrepreneurship

2. Examine the Five Stages Business Opportunity Evaluation Process.
3. Know the need of the market.

4. Analyze the 5 stages how to decide market potential to foster Business.

What is an opportunity for entrepreneurship?

Contemplating it fairly conceptually, we see that entrepreneurial activity starts with

perceiving or recognizing the potential for individuals to change their conduct - to
accomplish something they are at present not doing or to accomplish something
uniquely in contrast to they are as of now making it happen. The entrepreneur
perceives that, allowed the opportunity, some arrangement of individuals would
like to do things any other way whenever allowed the opportunity.
The entrepreneur then, at that point, imagines another item or administration as the
empowering agent for that new conduct thus lays out another type of utilization.
Assuming a group is correct about the potential for this new type of utilization,
then, at that point, they should find out if this opportunity can be taken advantage
of by an entrepreneurial endeavor, which includes getting options or rivalry and
monetary manageability, and whether an opportunity can be taken advantage of by
them, which includes getting what it takes, mastery, and experience important to
underwrite of the endeavor.

The establishment for any entrepreneurial endeavor is a market/item fit or match.

We think about the different sides of this idea, in spite of the fact that we should
perceive that each is comparative with the other.

What is a market need?

A market need is the potential for an adjustment of utilization. This idea covers
everything from neglected clinical necessities, challenges confronting
organizations, social issues, and so forth to the cravings for diversion and social
cooperation among youngsters. The potential for an adjustment of utilization may
continuously have been there, for example, the presence of infection conditions, or
they might come about as a result of evolving conditions, for example, expanding
abundance makes the longing to have specially prepared espresso drinks fermented
for us separately. To comprehend a market need is to comprehend a (right now)
unfilled longing or potential.
New pursuits by and large start with a theory that this potential is genuine,
however the main thing to take care of is dependably to approve this supposition,
and ordinarily to reconsider the speculation based on realities and proof.

What is a practical arrangement?

Numerous entrepreneurs wrongly start with an item idea. We utilize the term
achievable answer for maintain the entrepreneur's emphasis on the actual need.
Along these lines, the entrepreneur will attempt to get what will be expected to
offer a convincing arrangement that will really spike the adjustment of utilization
required. This discipline will limit that possibility making an item idea that comes
up short or neglects to consider basic components of the need or potential
inhibitors to reception.

Assuming an entrepreneurial group approves that they have distinguished an

expected market/item fit, thus have a potential reason for an endeavor, three
different inquiries should be addressed.
What is the opposition (the client's other options)?

Contest is the universe of choices that the potential client has. Entrepreneurs
frequently tragically consider rivalry different organizations (regularly other new
companies) that have similar item thought as they do. In any case, contest should

be considered according to the clients point of view. What is the full arrangement
of choices that the client has. What's more, by and large, the most convincing
option is to sit idle.

Do we have the right group?

Assuming a group has a reasonable thought, they can profit by it in the event that
they can execute well in every one of the key regions expected to make an
endeavor fruitful. This requires the right abilities, aptitude, and experience, and
furthermore drive, inspiration, and steadiness.

Is the endeavor monetarily feasible?

The fundamental inquiry here is: Will somebody pay us enough with the goal that
we can make, support, and develop our endeavor? The central inquiry is as a rule:
Will our planned clients pay enough for our item or administration? Be that as it
may, in some cases there are different wellsprings of income. On the off chance
that there is by all accounts a positive response to this inquiry, the entrepreneur can
get some information about the wellsprings of subsidizing important to send off
and lay out the endeavor. The inquiry will be whether the likelihood of coming out
on top is sufficiently high and the possible result adequately enormous to draw in
speculation.

It is useful to consider the assessment venture as persistently posing the inquiry of

whether the opportunity merits putting resources into. You are really building and
afterward persistently modifying an "speculation outline."

Figure 2.1 5 Stage Business Opportunity Evaluation Process

Slide Team; https://www.slideteam.net/business_powerpoint_diagrams/five-stage-business-opportunity-

evaluation-process.html: Retrieved on March 12, 2022
 Figure 2.2 Sources of Business Opportunity

KN E-Library; https://knecnotes.com/reasons-to-consider-when-evaluating-a-viable-business-opportunity/
Retrieved on March 12, 2022
5 stages how to decide market potential to foster Business

It is a seriously difficult interaction to pick the right market. It requires both investigation of
information, acknowledgment of market conditions and decides that sway it.

A decent method for deciding the potential of a picked market is to check it with five essential
advances. They permit to decide qualities and shortcomings, foster possibilities and conceivable
section boundaries. We should investigate them.

Stage1. Confirm market size

The reason for deciding the market potential is to inspect its size, which should be possible in
two ways - as for the volume or generally worth of the market. Volume implies the absolute
number of potential purchasers, who can make exchanges on a given market. Thus, the general
worth of the market ought to be deciphered as the all out monetary worth that customers can pay
for market items. This data is the beginning stage for additional investigation. They permit to
decide the fundamental qualities portraying a given market. After check, you can continue to the
following stages.

Stage2. Market development

The market size doesn't give full data about its potential. Along these lines, the improvement
patterns ought to be painstakingly dissected. For this situation, factors, for example, short and
long haul gauges, number of organizations, hazard of hindered improvement and current market
patterns are considered. It merits following the monetary examination from a couple of years
back and afterward deciding development elements and elements animate the market. In case of
any development unsettling influence, circumstance should be surveyed and confirmed whether
they might affect your business later on.

Stage3. Rivalry

While investigating the chance of entering another market you can't disregard contest. Countless
contending organizations don’t really mean less potential. Why? We should begin with the way
that the worth of contest should be confirmed. Assuming there are many organizations working
on the market, yet they are on a moderate transformative phase, there is a decent opportunity that
their mastery will be feasible.

To start with, their shortcomings and assets should be dissected, after which potential
arrangements ought to be characterized. This will permit to successfully contend on the market
with different organizations.

Stage4. Customers

The profile of potential shoppers, their inclinations and conduct give one more piece of
significant data that ought to be analyzed at the phase of evaluating market potential. Every
industry is described by its particularity. It is, among others, about the method of correspondence
with the client or potential ways of contacting them.

Along these lines, the objective gathering, in this accurate case shoppers, is one more significant
component of the investigation. Presently, there are many devices accessible on the web that
permit you to computerize such examination. They can likewise be made based on commonly
accessible factual information.
Stage5. Productivity

What is generally intriguing for everybody, who is contemplating beginning a enterprise on an

allowed market, is a potential opportunity of benefit from venture. Observing a harmony
between the size of the monetary cost, how much work and the potential benefit will likewise
offer a response about its potential. Utilizing the accessible factual information, this examination
can be done with practically no issues.

Regarding past advances, the whole carried out chart should offer the response to the evaluation
of the dissected market potential.

Market Analysis: What is my objective market?

An objective market is an obvious gathering of clients. Markets can be found inside any general
class: customers, organizations, enterprises, establishments, and so forth Shopper gatherings, for
example, can be portrayed by socioeconomic, geology, way of life, values, recreation, or
occupation. Business clients can be characterized as far as markets, items, the executives styles,
conveyance channels or size. Esteem added item marketing incorporates the end customers of
your item/administrations and the organizations who disseminate and offer your item to that
buyer (the channel clients).

Start market arranging by obviously recognizing the market you need to target. This could
conceivably be the market you are working with now.

The thought is to contemplate your item to figure out what set of clients are going to give your
enterprise the income, benefit and development it needs. Begin with a major piece of paper.
Across the top compose a short portrayal of your item as at present considered. Next compose
your responses to the following inquiries:
 • Who will purchase my item?

• For what reason will they purchase my item?

• What will they pay for my item?

• Where do they hope to track down this item?

At the point when you are done, venture back and consider what you have realized.

Composer:

• a short, engaged portrayal of your objective market

• an evaluation of which parts of your business need to change in request to draw in this
market

• a rundown of what is engaged with rolling out required improvements.

Reference/Online Source:

Duke Fuqua

https://sites.fuqua.duke.edu/dukeven/new-venture-guidelines/evaluating-an-
opporunity/: Retrieved on March 12, 2022

Slide Team

https://www.slideteam.net/business_powerpoint_diagrams/five-stage-business-
opportunity-evaluation-process.html: Retrieved on March 12, 2022

KN E-Library

https://knecnotes.com/reasons-to-consider-when-evaluating-a-viable-business-
opportunity/: Retrieved on March 12, 2022