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OP P O R T U N I T Y
IR N E G SE N C
IR N E G SE N C

S C R EE NI N G
 OPPORTUNIT
Y SCREENING
PRESENTED BY GROUP 4
Lord John Shernan S.
Mesinas April Joy Lagman
Pamela Ventura
 OBJECTIVES
At the end of this lesson the students should be able
to:

a. Identify the Opportunity Screening

b. Define the 12 Rs of Opportunity Screening
c.Appreciate the importance of Opportunity
Screening and on how this can help in our business
OPPORTUNIT
Y
SCREENING
Because of the many opportunities possible for
the entrepreneur, it is important to come up
with a short list of a few very promising
opportunities, which could be scrutinized in
detail.
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3
OPPORTUNIT
Y SCREENING
“It is the process of making The opportunities chosen may
both qualitative and be evaluated by the following:
quantitative assessment of
a capability
business ideas
1.The Personal Screen
producing sales growth of 2.The 12 R’s of
promising financial and
Opportunity Screening
performance”
3.The Pre-Feasibility Study

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3
THE PERSONAL
SCREEN
In screening opportunities, the entrepreneur first has to consider his or
preferences and capabilities by asking three basic her
questions:
1.Do I have the drive to pursue this business opportunity to the end?
2.Will I spend all my time effort and money to make the business
opportunity work?
3.Will I sacrifice my existing lifestyle, endure emotional hardship and forego
my usual comforts to succeed in this business opportunity?
 HE 12 RS Relevanc
Reinforcement
of
Revolutionar
OF OPPOR e entrepreneurial
y impact

UI Y interests

SCREE I Resource
G
A more complex Resonance Revenue s
screening grid uses s required
12 Criteria for
screening
Relative ease of
opportunities. Responsiveness Rang
e implementation

Reach Returns Risk

s
 HE 12 RS OF
OPP-O
Relevance R
Relevancy to the
entrepreneur's vision, mission, and
goals the opportunity needs to fit
with the personal vision, mission,
and goals you have for the
business you want to start.
Resonance - The opportunity
must align with your values and
desired virtues in addition to
your vision, mission, and
objectives.
I Y SCREEI G
Reinforcement of entrepreneurial
interests - How well does the
opportunity fit the entrepreneur's
unique interests, skills, and
abilities?
Responsiveness - Response to the
requirements and desires of the
customer. You have a better chance
of success if the opportunity you
intend to explore fulfills the unmet
or underserved requirements and
wants of customers.
 HE 12 RS OF
O- P
Reach PORpossibilities are
Better
those that have a high likelihood of
developing through branches,
distributorships, dealerships, or
franchise outlets in order to
achieve rapid growth.
Revenues - It's critical to assess the
sales potential of the goods or
services you wish to sell before
starting any entrepreneurial
venture.
I Y SCREEI G
Range - The possibilities may
result in a vast range of
prospective goods or services,
which would enable the industry
to reach many different market
segments.
Returns - It is a proven truth that
goods with low operating and
production costs, but higher
selling prices will always provide
the best returns on investment.
 HE 12 RS OF
OPPOR
Revolutionary impact - There is
a lot of potential for the
chosen
opportunity if you believe it will
most likely be the "next great thing"
or possibly a game-changer that will
transform the industry.
Resources required - Opportunities
that require less capital from the
entrepreneur may be preferred
over those that do.
I Y SCREEI G
Relative ease of implementation -
Will you find it reasonably simple to
implement the opportunity, or will
you have many challenges and skill
gaps
to overcome?
Risks - There are hazards in every
entrepreneurial activity. However,
certain possibilities come with
greater risks than others, such as
those that pose a high level of
market, financial, technological, and
human resource hazards.
THE PRE- FEASIBILITY
STUDY
THE PRE- FEASIBILITY
STUDYThe ultimate goal of doing the opportunity screening matrix is to narrow down
the many opportunities into one or two most attractive ones. The next step is to
conduct a pre-feasibility study to ascertain the viability of the opportunity. The
idea is to focus on a few key items that could make or break the business
concept
.
This time, the entrepreneur must go down to the details and take time to
consider the following factors that are contained in a pre-feasibility study:

•Market potential and prospects

•Availability and appropriateness of technology
•Project investment and detailed cost estimates
•Financial forecast and determination of financial feasibility
MARKET POTENTIAL AND
PROSPECT
Market potential is based on the estimated number of possible
customers who might avail of the product or service. For a more
realistic number, it would help to narrow down your estimation to the
relevant population or target customers in the area where you want to
operate your business (micromarket).

For entrepreneurs who are entering a business that caters to the basic
customer needs, such as food, clothes, beverages, furniture, appliances,
housing, schooling and the like, there would usually be demand and
supply statistics available from government institutions, industry
associations, and research firms. In addition, the entrepreneur must take
note that the total market for these products is usually not the issue.
 The customers would, oftentimes, make the final choice on what to buy according to
several factors such as:

1.their purchasing power or disposable income;

2. their proximity or accessibility to the goods or services;
3.their individual desires and preferences;
4.their age or generational grouping;
5. their social, cultural, or ethnic background;
6. their peer group preferences;
7.their gender;
8.the season of the year;
9.their personal identification with trend setters;
10.their educational attainment;
11.their technical proficiency and product expertise;
12.their motivational impetus;
13.their lifestyle preferences;
14.their susceptibility to certain advertising and promotional appeals, and many others.
 ASSESSING
THE
COMPETITION

This process would determine

how saturated the market is
in the given area of
coverage.
 ASSESSING
THE
COMPETITION
ASSESSING YOUR COMPETITORS SERVES FOUR
USEFUL PURPOSES:

1.It requires you to assess your existing market share and

current business methods.
2.It can identify new market opportunities.
3.You can learn from the strengths and weaknesses of
your competitors.
4.It allows for an early review of potential changes in the
market place.
 ASSESSING
THE
COMPETITION
Compelling reasons why you should consider a
competitive analysis program.

1.Business survival.
2. To counter the effect of slow growth.
3. To eliminate “complacency”
4. To spot opportunities
5. To spot opportunities
6. To spot opportunities
ESTIMATING MARKET SHARE AND
SALES
Market share is the percent of total sales in an
industry generated by a particular company.
Market share is calculated by taking the company's sales
over the period and dividing it by the total sales of the
industry over the same period.
This metric is used to give a general idea of the size
of a company in relation to its market and its
competitors.
The market leader in an industry is the company with
the largest market share.
 UNDERSTANDING MARKET
SHARE
A company's market share is its portion of total sales in
relation to the market or industry in which it operates.

To calculate a company's market share, first determine a

period you want to examine. It can be a fiscal quarter, year,
or multiple years

Formula for Market Share

Market Share = Total Company Sales / Total Industry Sales

HOW DO YOU MEASURE MARKET
SHARE
To determine a company's market share, you take the total
sales of a company and divide it by its industry's total sales
over a given period. For example, if a company sold $2
million worth of dishwashing liquid and the industry's total
sales were $15 million, the company would have a market
share of 2/15 = 13.3%

IMPORTANT: Gains or losses in market share can

have a significant impact on a company's stock
performance, depending on industry conditions.
TECHNOLOGY ASSESSMENT
AND OPERATIONS
VIABILITY
TECHNOLOGY ASSESSMENT AND OPERATIONS
VIABILITY

In order to get the enterprise going, the entrepreneur must go

through the intricacies of detailing the operations that would
be required by the business, which also includes technology
assessment. By going through this process, the entrepreneur
would be able to determine whether the product or service
offering will meet customer demand or not.
 TECHNOLOGY ASSESSMENT AND OPERATIONS
VIABILITY
There are at least four target customer expectations affecting the scale
and complexity of an enterprise’s operations:

1.Quantities demanded.
2.Quality specifications demanded.
3.Delivery expectations.
4.Price expectations.

The selling price of the product or service would be evaluated by the

customers according to the value they would receive (in terms of
quality, delivery, and quantity) and this value-added should be
matched against competitors.
INVESTMENT REQUIREMENTS
PRODUCTION/SERVICING
AND
COST
 INVESTMENT REQUIREMENTS
AND PRODUCTION/SERVICING
COST
Now comes the challenging part, the entrepreneur
needs to determine how much money is needed to
start the business opportunity with consideration to
the technologies and operating levels required.
 INVESTMENT REQUIREMENTS AND
PRODUCTION/SERVICING COST

There are three investments that need to be

funded:

1.Pre-Operating Costs.
2.Production/Service Facilities Investment.
3.Working Capital Investment.
 INVESTMENT REQUIREMENTS AND
PRODUCTION/SERVICING COST
These operating expenses would include the
following: Employee salaries, wages, and benefits
Rent and lease
expenses Utilities
Transportation
Fees and
licenses
Commissions
Office supplies,
 INVESTMENT REQUIREMENTS AND
PRODUCTION/SERVICING COST
This part of the pre-feasibility study asks two questions:

Do I have enough resources to cover the

necessary investments?
Would my sales estimates be significantly higher
than my monthly production/ service costs in order
to produce profits?
 https://prezi.com/lsr7a5nh8ap3/opportunity-screening/

https://
www.coursehero.com/file/43427282/12-
Rs-of-opportunity-
screeningpptx/

REFERE
https://profitune.com/assessing-the-competition/

CES
https://www.studocu.com/ph/document/brokenshire-college/bs-in-
accountancy/entrepreneurship-lesson-2-opportunity-screening/21313954

file:///C:/Users/ACER/Downloads/opportunity-screening_compress.pdf

h ttps://www.investopedia.com/terms/m/marketshare.asp
H
O