ENTREPRENEUR

SHIP
Recognize a
Potential
Market

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 What is a Potential
Market?
Potential Market is a part of the market
that you can capture in the future. It
includes the demographic groups that
are not your customers. While studying
the potential market, you plan to capture
new consumers in the market by
expanding your available products and
services. Based on the potential market,
the marketers plan the budgets and
expenses for production, marketing,
promotions, etc.
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 The Potential Markets
take one of three given
forms:
▪ New products you market to your
existing consumers.
▪ New products you market to new
consumers.
▪ Current products you market to new
consumers.

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 What is
opportunity?
- in a business sense, it is an idea
that has commercial potential.
- Something you can make money
with, develop a business around
it, or create value with it.

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 3S of Opportunity
Spotting and
Assessment
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OPPORTUNITY SEEKING,
SCREENING, AND SEIZING
OPPORTUNITY SEEKING

1.
TRANSITION
HEADLINE
Let’s start with the first set of slides
OPPORTUNITY SEEKING

1.
TRANSITION
HEADLINE
Let’s start with the first set of slides
OPPORTUNITY SEEKING

1.
TRANSITION
HEADLINE
Let’s start with the first set of slides
innovative
Opportuniti
es
1. Macro Environmental Sources of
opportunities
2. Industry Sources of Opportunities
3. Micro Market
4. Other Sources
Macro-environmental
Sources
 STEEP Analysis

The result of the STEEP scan will aid the

entrepreneur in deciding what product or service to
set up and whether this new venture will succeed
or not. The focus of this scan is only on the macro-
environment. Again, not all factors can have an
effect on the new venture. The important things is
for the entrepreneur to fully scan these factors so
he or she can decide if there is a compelling
business opportunity or an impending threat.
Environment
1.Socio-Cultural
Environment
includes the demographics
and cultural dimensions that
govern the relevant
entrepreneurial endeavor.
Taking this aspect into
consideration helps the
entrepreneur assess the
trends and dynamics of the
bigger consumer population,
their beliefs, tastes, customs,
and traditions. It looks at
Environment
2.Political Environment
defines the governance system
of the country or the local area
of business. It includes all laws,
rules and regulations that
govern business practices as
well as the permits, approvals,
and licenses necessary to
operate the business.
Specifically, it regulates the use
of natural resources; disposal of
wastes; the taxation of income;
the importation of goods and
services; and other such
Environment
3.Economic Environment
Supply and demand forces
mainly drive the macro-
economic environment. They
are the same factors that drive
the interest and the foreign
exchange rates that fluctuate
with the movement of the
market forces.
In any country, the income
levels and the purchasing
power of the people as well as
the competitiveness (or
uncompetitiveness) of its
Environment
4.Ecological Environment
includes all natural resources
and the ecosystem, habitat of
men, animals, plants, and
minerals. There is a growing
awareness in the world today
that will make this factor more
and more important for
countries, industries, and
businesses.
Environment
4.Ecological Environment
includes all natural resources
and the ecosystem, habitat of
men, animals, plants, and
minerals. There is a growing
awareness in the world today
that will make this factor more
and more important for
countries, industries, and
businesses.
Environment
5.Technological Environment
New scientific and technological
discoveries, which often lead to the
launch and commercialization of new
products with superior attributes or
to rendering the old ones obsolete,
are the entrepreneur's nightmares. In
such cases, the entrepreneur is left
with no choice but to invest in new
technologies in order to keep up with
competition. Technology does not
only come in the form of advanced
machinery or equipment, but it can
also be in the form of new systems,
Industry Sources of
Opportunity
PARTICIPANTS IN AN INDUSTRY INCLUDES:
 Rivals or competitors in a business.
 Suppliers of input (e.g., fuel, electricity, raw materials) to rivals as
well as suppliers of machinery and equipment, supplier of
manpower and expertise, and supplies of merchandise.
 Consumer market segments/sections being served by rivals or
competitors.
 Substitute products or services, which customers shift or turn to.

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 Micro Market

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A. Consumer preferences, interest and
perception

-These are the current needs and wants of potential customers that should be
discovered right away by a budding entrepreneur.

A need is recognized when a customer believes that there is a difference between

his or her current situation versus his or her desired condition.

A want is recognized when a customers believes that there is a specific product or

service that can perfectly suit the need.

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B. Competitors
-Recognizing and understanding potential competitors will aid the entrepreneur to develop
a product or service that is unique and will stand out from the competitor.

Competition – the rivalry between companies selling similar products and services with the
goal of achieving revenue, profit, and market share growth.

2 TYPES OF COMPETITION
Direct Competition – is a situation in which two or more businesses offer products and
services that are essentially the same; as such, the businesses are competing for the same
market.
Indirect Competition – is the conflict between vendors whose products or services are not
the same but that could satisfy the same consumer need.

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C. Unexpected Opportunities from customers
-The most brilliant ventures come from the most unexpected opportunities. It may happen
in unlikely situations, unlikely places, and with unlikely people.

D. Talents, Hobbies, Skills and Expertise

-Business opportunities do not first come from outside forces, but also from within. The
entrepreneur's talents, hobbies, skills, or expertise can be a source of business opportunity.

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E. Irritants in the marketplace, such as
deterrents problems, complaints and delays
-Entrepreneurs see opportunities in situation where there is a
recurring problem or sometimes when there is no more hope in
solving the problem.
first second last
F. Location
-Entrepreneur first have to look at their ecosystem and they will be
able to spot a business opportunity right away.

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 Other Sources of
Opportunities

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1. Customer preferences change overtime.
2. People’s taste in clothes, music, shoes, entertainment,
dance, sports, hobbies, and even careers have evolved over
the years.
3.What piques/irritations customers is a great source of
opportunities.
4.Before the customer is won over; there is first a battle for
the mind. Next, there is a battle for the heart. Finally, there
is a battle for the wallet.

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5.The longer the customer wants to use the product, the
greater the chances of creating lasting loyalty.
6.Opportunities abound in shaping consumer perceptions or
occupying spaces in their minds or places in their hearts that
have not yet been filled.
7.New inventions, new systems and new insights about
human psyche, new application for old knowledge, new
outlooks about how life should be led, and a host of new
things are tremendous

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sources of opportunities.
8. Determining personal preferences and competencies lay
the foundation for a new business venture.
9. Unexpected occurrences in both the external and internal
environment of the enterprise indicate that significant
changes are happening, and opportunities are sprouting.

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 OPPORTUNITY SCREENING
After opportunity-seeking comes to the rigorous process of
Opportunity Screening. Because of the many opportunities possible
for the entrepreneur, it is important to come up with a shortlist of a
few very promising opportunities, which could be scrutinized in
detail.

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 OPPORTUNITY SCREENING/DETERMINE THE POSSIBLE
PRODUCTS AND SERVICES THAT WILL MEET THE NEED

Product – is a tangible item that is put on the market for

acquisition, attention, or consumption

Service – is an intangible item, which arises from the output of

one or more individuals.

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 OPPORTUNITY SCREENING
1.The Personal Screen
▪ Do I have the drive to pursue this opportunity to the end?
▪ Will I spend all my time, effort, and money to make the business
opportunity work?
▪ Will I sacrifice my existing lifestyle, endure emotional hardship,
and forego my usual comforts to succeed in the business
opportunity?

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 OPPORTUNITY SCREENING
2.The 12 Rs of Opportunity Screening
1.Relevance to vision, mission, and objectives of the entrepreneur. The
opportunity must be aligned with what you have as your personal vision, mission,
and objectives for the enterprise you want to set up.
2.Resonance to values. Other than vision, mission, and objectives, the
opportunity must match the values and desired virtues that you have or wish to
impart.
3.Reinforcement of Entrepreneurial Interests. How does the opportunity
resonate with the entrepreneur’s personal interests, talents, and skills?

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 OPPORTUNITY SCREENING
4.Revenues. In any entrepreneurial endeavor, it is important to
determine the sales potential of the products or services you want to offer.
Is there a big enough market out there to grab and nurture for growth?
5.Responsiveness to customer needs and wants. If the opportunity
that you want to pursue addresses the unfulfilled or underserved needs
and wants of customers, then you have a better chance of succeeding.
6.Reach. Opportunities that have good chances of expanding through
branches, distributorships, dealerships, or franchise outlets in order to
attain rapid growth are better opportunities.

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 OPPORTUNITY SCREENING
7.Range. The opportunity can potentially lead to a wide range of possible
product or service offerings, thus, tapping many market segments of the
industry.
8.Revolutionary Impact. If you think that the opportunity will most
likely be the “next big thing” or even a game-changer that will
revolutionize the industry, then there is a big potential for the chosen
opportunity
9.Returns. It is a fact that products with low costs of production and
operations but are sold at higher prices will definitely yield the highest
returns on investments. Returns can also be intangible; meaning, they
come in the form of high profile recognition or image projection.
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 OPPORTUNITY SCREENING
10.Relative Ease of Implementation. Will the opportunity be
relatively easy to implement for the entrepreneur or will there be a lot of
obstacles and competency gaps to overcome?
11.Resources Required. Opportunities requiring fewer resources from
the entrepreneur may be more favored than those requiring more
resources.
12.Risks. In an entrepreneurial endeavor, there will always be risks.
However, some opportunities carry more risks than others, such as those
with high technological, market, financial, and people risks.

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 OPPORTUNITY SCREENING
10.Relative Ease of Implementation. Will the opportunity be
relatively easy to implement for the entrepreneur or will there be a lot of
obstacles and competency gaps to overcome?
11.Resources Required. Opportunities requiring fewer resources from
the entrepreneur may be more favored than those requiring more
resources.
12.Risks. In an entrepreneurial endeavor, there will always be risks.
However, some opportunities carry more risks than others, such as those
with high technological, market, financial, and people risks.

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 OPPORTUNITY SCREENING
3.The 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

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 OPPORTUNITY SEIZING
What does it mean to seize opportunities?
• To accept or pursue an opportunity (to do something)
with alacrity or conviction.
• To take advantage of an opportunity when offered.
• When you seize an opportunity, you take advantage of
it and do something that you want to do.
• Act quickly to use the opportunity while available.
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 OPPORTUNITY SEIZING
 The entrepreneur has an idea as to
where he or she will locate the
business and how he or she will
market the product or service.

 The question for the entrepreneur in

opportunity seizing is “Will I be able to
manage to my advantage, the critical
success factors and avoid the critical
failure factors?"

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