Entrepreneurial and Business Opportunities PDF

# Topic 5 ENTREPRENEURIAL AND BUSINESS OPPORTUNITIES ## Introduction For one to make a sound investment, he/she must be clear about the activity to invest in. This calls for one to have certain knowledge and skills regarding the process of initiating and managing a business venture. A good busine...

# Topic 5 ENTREPRENEURIAL AND BUSINESS OPPORTUNITIES ## Introduction For one to make a sound investment, he/she must be clear about the activity to invest in. This calls for one to have certain knowledge and skills regarding the process of initiating and managing a business venture. A good business opportunity must fulfill the following criteria; there must be real demand for the product, it must provide durable, timely and acceptable returns, it must be equal to or better from the customer's view point, it must meet the goals and aspirations of the promoters and it must generate income which exceeds the cost. ## Generating/Identifying Business Opportunity Good business opportunities can be identified through the following ways: * observation of existing business sector * interviewing local people * brainstorming * attending shows * utilization of own skills or talent * utilizing waste * utilizing ones assets * Work experience * Hobbies * Inheritance * Creativity and innovation ## Evaluating/Screening Business Opportunity Factors to consider when evaluating the viability of an identified opportunity are: * Availability of market * Existence of competition * Adequate supply of inputs * Capital requirements * Business location * Availability of the required labour * Consistence with government policies * Reasonableness of costs * Cultural values * Political conditions * Profitability ## Identifying and Sourcing Start-Up Business Resources Before a business plan designed is implemented, one must always consider the resources that are needed to accomplish the goals of an organization. Necessary resources may include the following: * **Labour:** In terms of skills needed to perform given tasks. Skills could be technical, managerial or entrepreneurship. * **Capital:** Money needed to start and to run business. Capital can be sourced from different institutions and individuals. * **Equipment:** Tools of trade required to accomplish the goals of an organization. * **Premises:** Space required for operating or conducting a business. * **Others include:** Licenses, taxation laws, zoning law etc.