IDENTIFICATION OF

BUSINESS
OPPORTUNITIES
INTRODUCTION
 The entrepreneur gets information regarding
various numerable investment opportunities from
the magazine. Internet, financial institution, gov’t.,
commercial organization, friends, and so on. To
choose the best opportunity from the information
collected requires ingenuity, skill and foresight on
the part of the entrepreneur.
 As an entrepreneur, he has to select feasible and
rewarding opportunity to choose such good
business opportunity. For this purpose he has to
evaluate following idea and understand gap bet.
Demand and supply.
1. Study gov’t. rules and regulations regarding diff.
business opportunities.
2. Extensive study of promising investment
opportunity.
3. SWOT analysis of business potential (strength,
weakness, opportunities and threats.)
4. Market survey.
SOURCES OF BUSINESS
OR PRODUCT IDEAS
1. Market characteristics- unfulfilled demand a product
will open the door for new product. Supply and
demand of various products and demand for new
products should also be analyzed.
ex. The success of Kellogs as morning breakfast
as quick and nutritious food caloriless is an
example of success of new idea.
2. Import and Export- The Govt’ of India is encouraging
exports and various EXIM policy encourage
entrepreneur to think about the new option.
3. Emerging new tech. and scientific know how-
commercial exploitation of indigenous or imported
technologies and know-how is another sourse of
project idea.
4. Social and Economic Trends- Social and Economic
status of people are always dynamic in nature and
offer wide oppor. As an entrepreneur, should
observe such things.
5. Product Profile- An analytical study of the end
products and by products throw light on new project
idea.
6. Changes in Consumption Pattern- Changes in
consumption pattern of the people in the home
country and foreign countries also requires the
entrepreneurs attention.
7. Revival of sick units- A sick unit gives ample
investment opportunities in the hands if dynamic
entrepreneur. He can revitalize and turn a sick unit
into a profitable one.
8. Trade fairs and trade journals- Magazines, journals,
industries or trade fairs offer wide scope for
business opportunities.
IDENTIFYING A BUSINESS
OPPORTUNITY
 Opportunity can be defined as an attractive and
excellent project idea which an entrepreneur search
for and accepts such idea as a basis for his
investment decision. A good business opportunity
must be capable of being coonverted into freasible
projects.
2 major characteristics of a business oppor. Should
be highlightened.
1. Good and wide market scope
ex. Gap bet. Present or likely demand and
supply.
2. An attractive, acceptable and reliable return on
investment.
STEPS IN IDENTIFICATION OF
BUSINESS OPPORTUNITIES
1. Preliminary evaluation
2. Selection of product or service
3. Conduct a market survey
4. Contactual programs to collect
sufficient info. About proposed
venture
5. Succeeding in the market
1. Preliminary evaluation
- As soon as entrepreneur realizes business
opportunity, he has to evaluate investment
opportunities against set of specific criteria to select
those project ideas which are commercially feasible.

2. Selection of Product or Service

- Entrepreneur should identify w/c he wish to
manufacture while deciding about the product ff.
points to be considered.

3. Conduct a Market Survey or Purpose of

Market Survey
- Market survey w/ reference to the availabilty of raw
materials, equipments, marketing and distribution
and consumer behavior should be considered.
 4. Contactual Programmes to Collect
Sufficient Information About Proposed
Venture
- Entrepreneur often need information and guidance,
particularly in the initial stages on product potential.
Raw materials, policies, facilities. Procedures,
finance, formalities, incentives, etc. It can be
collected through State Gov’t. agencies.

5. Succeeding In the Market

- There is no way your business will earn money and
profit unless customers buy product or service. The
secret formulae for an entrepreneurs’ success is to
produce what customers will buy.