Opportunity Seeking PDF

OPPORTUNITY SEEKING MS. JORI LACE R. BASBAS, MBA  LEARNING OBJECTIVES Determine the different sources of opportunities. Define Entrepreneurial Opportunity Discuss Joseph’s Schumpeter’s theories of opportunity Describe an entrepre...

OPPORTUNITY SEEKING MS. JORI LACE R. BASBAS, MBA  LEARNING OBJECTIVES Determine the different sources of opportunities. Define Entrepreneurial Opportunity Discuss Joseph’s Schumpeter’s theories of opportunity Describe an entrepreneur as opportunity seeker. 20XX Contoso business plan 2  Question: As an Entrepreneurship Student, in what situation do we tend to identify OPPORTUNITIES? “Think like an entrepreneur” by: Ma’am JLRBasbas Introduction The first step for any start-up venture is to have an idea as to the kind of business opportunity to start with. When seeking for opportunities, always remember that present problems are the ones that offer the best opportunities that consequently require solutions. In this industry, if you want to be a successful entrepreneur, you need to be able to recognize a problem or a gap and gear up with innovative solutions. Aspiring entrepreneurs can come up with ideas all day long, but not every idea is necessarily a good idea. For an idea to be worth pursuing, we must first determine whether the idea translates into an entrepreneurial opportunity. 4 Entrepreneurial Opportunity Entrepreneurial Opportunity is the point in which identifiable consumer demands meets the feasibility of satisfying the requested product or service. In the field of entrepreneurship, specific criteria need to be met to move from an idea into an opportunity: Developing the right mindset - a mindset where the aspiring entrepreneur sharpens their senses to consumer needs and wants and conducts research to determine whether the idea can become a successful new venture. 5 Entrepreneurial Opportunity Deliberate search - In some cases, opportunities are found through a deliberate search, especially when developing new technologies. Chance - In other instances, opportunities emerge serendipitously, through chance. Recognizing a problem - But in most cases, an entrepreneurial opportunity comes about from recognizing a problem and making a deliberate attempt to solve that problem. The 6 Joseph Schumpeter 7 Theories of Opportunity In the twentieth century, economist Joseph Schumpeter stated that entrepreneurs create value “by exploiting a new invention or, more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products, by reorganizing an industry” or similar means. 8 Theories of Opportunity For Schrumpeter, the goal was to progress, and progression starts with finding new ideas. He identified these methods for finding new business opportunities: 1.Develop a new market for an existing product. 2.Find a new supply of resources that would enable the entrepreneur to produce the product for less money. 3.Use existing technology to produce an old product in a new way. 4.Use an existing technology to produce a new product. 5.Finally, use new technology to produce a new product. 9 Theories of Opportunity We can understand theories of opportunity as related to supply or demand, or as approaches to innovations in the use of technology. Supply and demand are economic terms relating to the production of goods. Supply is the amount of a product or service produced. Demand is the consumer or user desire for the outputs, the products, or services produced. Our focus is on identifying where the current or future supply and the current or future demand are not being met or are not aligned, or where technological innovation can solve a problem. 10 11 12 What are the Local Business which was established out of answering the concerns of the community? 13 The Entrepreneurs as Opportunity seekers Entrepreneurs are innovative opportunity seekers, they have endless curiosity to discover new or different ideas and see whether these ideas will work in the marketplace. This is what separates an entrepreneur from a businessman whose main objective is simply to earn points from producing, buying, and selling goods. Entrepreneurs create value by introducing new product or services or finding better ways of making them. These may include innovation in terms of product design or addition to new product feature to existing ones. They may also tinker on improving their operational capability by employing new technologies that will bring them greater efficiency, better economies, and even enable them to reach unapparelled superiority. They may also consider expanding their reach by creating new markets or maximizing existing business paradigm by rendering it obsolete through the introduction of disruptive technologies, processes, and system. 14  What is Opportunity? An endless curiosity About discovery Finding better ways 15  Identifying Opportunity 20XX 16  Search for new ideas 20XX Contoso business plan 17  Entrepreneurial Mind, Heart, and Gut Entrepreneurial Gut The Entrepreneurial Mind Entrepreneurial Heart Game; this refers to the Frame allows the entrepreneur Flame is the great desire to ability of the to see things in a very positive attain a vision or fulfill entrepreneur to sense and optimistic light in the midst mission. It is about without using the five of crisis or difficulty situation. senses and also known wanting something so Instead of being discouraged, as intuition. the entrepreneur is able to use much that a person would these problematic situations as be willing to totally devote inspiration in creating one’s self to the quest. something innovative. 18 19 20 21 22 23  Entrepreneurial Mind frame, Heart and Gut 20XX Contoso business plan 24 20XX Contoso business plan 25 20XX Contoso business plan 26 20XX Contoso business plan 27 20XX Contoso business plan 28 20XX Contoso business plan 29 20XX Contoso business plan 30  Sources of Opportunities 20XX 31  Macro Environmental Opportunities It refers to the “big” or “macro” forces that affect the area, the industry, and the market or condition that exist as a whole. They influence how business should be conducted, how consumers will behave, howsupply and demand will move, how differentcompetitors would position themselves, andhow the cost of doing business will proceed. 20XX Contoso business plan 32  Macro Environments Socio Cultural Political Includes the Defines the governance demographics and cultural system, it includes the dimensions that govern laws rules and regulations the relevant that givernt the business entrepreneurial endeavor practices as well as and assess the trend and permits, approvals, and dynamics of the bigger licenses to operate consumer population, beliefs, tastes, customs, and traditions. 20XX Contoso business plan 33 Macro Environments Ecological Economics Technological Includes all natural Supply and demand forces New scientific and resources and the mainly drive the macro- technological discoveries ecosystem economic environment, which often lead to the the income levels and the launch and purchasing power of its commercialization of people as well as the new products with competitiveness of its superior attributes industries and enterprise. 34 35 36 37 38 39 40 41 42  Question: Does all OPPORTUNITIES be identified as potential business opportunities? “Think like an entrepreneur” by: Ma’am JLRBasbas Thank you End of Discussion Next Topic: Opportunity Screening Jori Lace R. Basbas, MBA 44 Assignment Based on your own understanding, What is the difference between opportunity and entrepreneurial opportunity? 5 points Define and explain Theory of Opportunity based on Joseph Schumpeter. 3 points As future entrepreneur, why is it important to know how to seek entrepreneurial opportunities? 5 points What are the 12 Rs of Opportunity Screening? 12 points TOTAL: 25 points Submit your output in MS Teams. Using Letter size paper, Arial font style size 10 1.5 spacing justified. Save the word file using the file name format as: Surname, First Name Assignment 1 Opportunity Seeking. 45 References: Ferreira, C. (2020) The 19 Most Profitable Business Opportunities in 2021 retrieved Oct 19, 2022 from: https://www.shopify.com/ph/blog/business-opportunities https://openstax.org/books/entrepreneurship/pages/5-1-entrepreneurial-opportunity https://www.studocu.com/ph/document/brokenshire-college/bs-in-accountancy/entrepreneurship-lesson-3- opportunity-seizing/21313953 https://www.shopify.com/ph/blog/business-opportunities 20XX Contoso business plan 46 Opportunity Screening Jori Lace R. Basbas, MBA Learning Objectives: – You can think of product/market fit as sailing, where product is the sail and demand is the wind. – For the boat to work, you have to build a sail and find the wind to power it—so in less nautical terms, for your company to succeed you need to build a product whose value proposition satisfies the needs of a market and its potential customers. Opportunity Seeking: Market – Product Fit It is the ongoing process of considering, evaluating, and pursuing Opportunity Seeking – is the process market-based activities that are of spotting, evaluating and pursuing believed to be advantageous for the relevant and sustainable revenue and firm. Prior experience informs the profit generating activities in the process, but it may also limit it: marketplace. opportunity seeking calls for continuous reconsideration and adaptive learning. What is opportunity seeking screening and seizing? – Entrepreneurs are innovative opportunity seekers. They have an insatiable curiosity to discover new or different ideas that will work in the marketplace. After screening several opportunities according to well-defined criteria, the next step for the entrepreneur is to seize the chosen business opportunity. – Developing a sufficiently detailed understanding of which markets offer the greatest opportunity — and whether that opportunity is sustainable — can be a complex task. – Many factors must be considered, such as application requirement, cost of change to fabricators, processing conditions, market size, market potential and competition. – Additionally, shifting trends which open — or close — the potential market opportunity must be fully assessed. The complexity of this exercise is compounded where – multiple market segments are being analyzed. The Personal Screen 5-Point Test for Opportunity Screening – 1. Customer – Is the market real? – 2. Timing – is it big enough? – 3. Finance – Can it be profitable? – 4. Product – Can we differentiate? – 5. Competitiveness – Can we win? A. Is the market real? – -Entrepreneurs must have a sense making skill to determine that a market gap or market problem truly exists, be practical enough to do business with those willing to transact with them, and finally be competent enough to know whether or not the firm is in the best position to satisfy the unmet needs B. Is the market big enough? –A market must be scalable as businesses must plan to grow. Channel of distribution can also determine the extent of market reach, hence, the size of the market. C. Can we be profitable? –Entrepreneurs must know the breakeven point of the company as well as the recovery period of the investment, so they can plan to gain critical mass of volume to have superior financial returns. D. Can we differentiate? –Differentiation is about uniqueness, but uniqueness can only be considered if there is brand relevance E. Can we win? –Entrepreneurs can have profitable businesses but their financial returns may not be optimal yet. They must not just think of making money but winning a white space in the marketplace e for impact and to be effective and efficient. Personal Screening – -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 lifestyles, endure emotional hardship, and forego my usual comforts to succeed in this business opportunity? The 12 R’s of Opportunity Screening –The 12 R’s simply imply that before you engage in business you need to scrutinize the ins and outs of the business for not to lose your investment, are there possible market for your business, is there any growth in that particular area The 12 R’s 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. The 12 R’s of Opportunity Screening 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. The 12 R’s of Opportunity Screening 3. Reinforcement of Entrepreneurial Interests. How does the opportunity resonate with the entrepreneur’s personal interests, talents, and skills? The 12 R’s of 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? The 12 R’s of Opportunity Screening 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. The 12 R’s of Opportunity Screening 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. The 12 R’s of 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. The 12 R’s of Opportunity Screening 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 The 12 R’s of Opportunity Screening 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. The 12 R’s of 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? The 12 R’s of Opportunity Screening 11. Resources Required. Opportunities requiring fewer resources from the entrepreneur may be more favored than those requiring more resources. The 12 R’s of Opportunity Screening 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. Conducting Pre- feasibility Study End of Discussion – Next Topic: Opportunity Seizing