2. How to identify the business
opportunity suited for you
The success or failure of any enterprise depends upon the project selected. So
identification of project is of crucial importance to the aspiring entrepreneur.
PROJECT IDENTIFICATION
There are no set rules to identify a suitable project, though this is one decision
on which the success of your entire venture hinges. So, don’t take hasty
decisions.
Most prospective entrepreneurs tend to display the herd tendency and
go for a project, which people have already ventured into. This is not a healthy
attitude as success of one in a particular field does not guarantee success of
the other. While identifying a suitable project, you should make a SWOT
analysis of your own strengths and weaknesses.
3. An aspiring entrepreneur can identify a market niche
(opportunities) through analysis of the following
questions.
1) Is there any unfulfilled need?
2) Can I introduce unique features in the products?
3) What are potential customers?
4) What are the strengths & weaknesses in the product?
5) What is the Cost of the product?
6) How is the distribution network of product?
7) What is the estimated size of the market?
4. As regards project identification, there exist three
broad types of opportunities
1) Additive - utilizing the existing resources without making
any change.
2) Complimentary - introduction of new ideas and involves
change
3) Breakthrough - involves drastic and fundamental changes
in the existing business
5. Product ideas may emerge from
Survey of raw material
Survey of local skills
Study of import/ export statistics
Study of world trade
Study of store requirements
Study of development plans
Study of government policies
Study of new process/products developed by research centres
Study of potential for tourism
Solutions for day to day problems
Listening to potential clients
Listening to present customers
Study competitors
Study industry trends & insights
Refine your ideas
Define your ‘Why’
Clarify your target customer
6. To further confirm the identified idea the
entrepreneur must analyze
His managerial skill
Technical feasibility of the project
Marketability of the product
Economic viability of the product
7. Different Types of Innovation
Organizational Innovation
Development of a new organizational strategy that will somehow
change a company’s business practices
Process Innovation
Implementing a new or improved production or delivery approach
Product Innovation
A new or improved good or service
These innovations or changes may have to do with improving
technical specifications, the materials or the software used
Marketing Innovation
A new marketing strategy that produces changes in, for instance, the
way a product is designed or packed
Eco-innovation and Sustainability Approach
Reducing the impacts of our production modes on the environment,
improving nature’s resilience to environmental stresses, or achieving
a larger efficient and responsible use of natural resources
