EVALUATION OF OPPORTUNITIES

Chapter 3
 Learning Objectives:
After studying this chapter you should be able to
describe:
1. The Business Idea and How to Develop New
business Idea.
2. The definition of technology and how to create
a product (product life cycle).
3. The Important of Leadership, innovation and
consultancy skills in business.
4. The Government and Private Agencies Related
with the Innovation Activities.
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 Identifying, Analyzing, Evaluating and Choosing
Business Opportunity.
There are four (4) major steps to be performed by an
entrepreneur before starting the business.
Step 1:
Identifying
Step 3: Evaluate
Customer Needs
Business
and
Opportunities
Requirements

Step 4: Selecting
Step 2: Analyzing Business
Environmental Opportunities
Assessment, and Develop
Personal and Business Plan
Social Values

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 Step 1: Identifying Customer Needs and
Requirements
 Each business opportunity starting at the need and
requirements of customers for a product.

 Basic needs is something that must be acquired, such as food,

clothing, shelter, education and security.

However, people also have a requirement that a desire or a

personal desire for something better than basic.

The requirement of a person can be influenced by culture,

education level, level of ability and personality.

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 Step 2: Analyzing Environmental Assessment,
Personal and Social Values
In search of business opportunities there are three important
things that need to be considered. The environment, self-
assessment and the community.
2.1Environment Scanning

-Population structure, income and tastes

eg. Muslim, Buddhist
-Studies on the import & export data
eg. Export of meat
-Studies on local resources
-Industrial chain
-Government and private development plans
Eg. AFTA, Seri Iskandar Corriddor
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2.2 Self Assessment

-Experience eg. Working in related field.

-Knowledge and skills. Eg. Finance, accounting,
marketing
-Financial position.
-Interest.
-Networking.
2.3 Social Values

- Culture and norms.

- Local Ethics.
- Local perception.
- Taboo. Eg. Religion, hate, sexual related
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 Step 3: Evaluate Business Opportunities
 The process of evaluating business opportunities to help
entrepreneurs choose one of the best business opportunities.
 With all this attention, commitment and efforts of entrepreneurs
to focus on only a business opportunity only.
 Here are some processes that can be taken by entrepreneurs in
evaluating the best business opportunities.

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• Legal. Eg. Business registration, local
rules,
•  Monopoly power and the level of
competition
•  Capital Requirement
•  Risk
 Step 4: Selecting Business Opportunities and
Develop Business Plan
 After all the processes and measures undertaken, it is
up to entrepreneurs to choose the best business
opportunities.
 Further action after choosing the best business
opportunity is to provide a (Business Plan)
Administration and Operation Plan, Marketing Plan and
Financial Plan.

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