MODULE-2-ENTREP-PROCESS-SEEKING-AN-OPPORTUNITY.

1. ENTREPRENEURIAL
PROCESS

2. THE ENTREPRENEURIAL
PROCESS
 It is a step-by-step procedure in
establishing any kind of business that
an entrepreneur has to undergo.
 It is composed of 4 aspects.

3. 1. Opportunity Spotting and Assessment
 the beginning of the process.
 considered as the most difficult aspect.
 the entrepreneur takes note of the interesting
trends in their environment.

4.  MAJOR SOURCES OF
OPPORTUNITIES :
 Consumers
 Problems in the environment
 Problems encountered by co-
entrepreneurs
 New trends
 Processes
 Developments in the environment

5. The entrepreneurs’ toughest job is:
 to carefully assess the opportunity through
estimation of opportunity length, capitalization
required, threats, profitability, and calculation
of real and perceived value.
 to assess if the opportunity is aligned with their
personal goals and attributes and think in
advance how to position their product in the
market.

6.  MINOR SOURCES OF
OPPORTUNITIES :
 Feedback from distribution or business
partners such as :
 Retailers
 Wholesalers
 Manufacturers
 Technical people

7. 2. Developing a business plan
 Entrepreneurs should formulate a business
plan when they have already spotted and
assessed the opportunities for market.
 The business plan will be the core guide and
direction in calculating the resources needed,
assessing how to obtain these resources
efficiently and running the business
sustainably.

8. 3. Determining the capital
needed
 it is mandatory in the entrepreneurial
process to calculate the resources needed to
establish the business and compare this
against the entrepreneur’s current resources.
 include those items that are considered as

9. 4. Running the business
 the part where the entrepreneur should use
the resources for the venture.
 the business plan should already be
implemented.
 the entrepreneur should have a control and
monitoring system to serve as a check and
balance of the formulated plans.

10. OPPORTUNITY SPOTTING
AND ASSESSMENT
DEVELOPING A BUSINESS
PLAN
DETERMINING THE
CAPITAL NEEDED
RUNNING THE BUSINESS
Evaluate the identified
opportunity
Come up with a
business description
and analysis
Calculate the intrinsic
and extrinsic capital
needed
Practice leadership as
a way of life
Conceptualize and
measure the
opportunity
Perform industry
analysis
Calculate the existing
capital
Recognize critical
success factors
Do cost-benefit
analysis of the
opportunity including
risk analysis
Come up with the
marketing plan
Calculate the
difference between
the needed capital
and the existing
capital. Choose the
most cost-efficient
suppliers or service
providers
Identify existing and
foreseeable problems
and issues
Match the opportunity
with the entrepreneur’s
skills and objectives
Prepare the operations
plan including the
organizational plan
Develop contact and
relationship with
suppliers and service
providers
Employ risk-mitigating
controls and
monitoring systems

11. OPPORTUNITY SPOTTING
AND ASSESSMENT
DEVELOPING A BUSINESS
PLAN
DETERMINING THE
CAPITAL NEEDED
RUNNING THE BUSINESS
Scan the strengths and
weaknesses of
competitors
Come up with the
financial plan
Devise an expansion /
sustainability strategy
Identify strategies and
tactics
Perform monitoring
and control

12. SCANNING THE
MARKETING
ENVIRONMENT
CONCEPTS AND IDEAS

13. THE 3S OF OPPORTUNITY
1. SEEKING
2. SCREENING
3. SEIZING

14. S1: SEEKING THE OPPORTUNITY
◦The first step yet the most difficult process of all due to
number of options the entrepreneur will have to choose
from.
◦Be innovative
◦Be curious to discover new / different ideas that will work in
the marketplace.

15. MACRO-ENVIRONMENTAL
SOURCES
1. STEEPLED - Sociocultural, Technological,
Economic, Environmental, Political, Legal, Ethical,
and Demographic factors.
2. INDUSTRY
3. NEW DISCOVERY OR KNOWLEDGE
4. FUTURISTIC OPPORTUNITIES

16. INDUSTRIES
S O U R C E O F C U R R E N T T R E N D O N W H AT I S
H A P P E N I N G I N T H E I N D U S T RY ; B E F U L L Y
A C C L I M AT E D O N T H E I N D U S T RY I F H E /
S H E WA N T S TO E S TA B L I S H T H E B U S I N E S S

17. NEW
DISCOVERY /
KNOWLEDGE
N E W T R E N D S T H AT C A N B E T H E C O R E
B U S I N E S S M O D E L O F N E W V E N T U R E .
E X : O N L I N E S E L L I N G

18. FUTURISTIC
OPPORTUNITIES
P R O J E C T E D N E W O P P O RT U N I T I E S T H AT
C A N A F F E C T T H E N E W B U S S I N E S S W H I L E
I T I S R U N N I N G .

19. MICROMARKET

20. Micromarketing
◦A strategy used to target a small segment of consumers with
specific needs for products in the market. In micro marketing,
all advertising efforts are strongly focused on a small group of
highly targeted consumers.

21. 1. Consumer preferences, interests, and perception
◦ These are current needs and wants of the potential customers that
should be discovered right away by a building 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 customer believes that there is a specific
product or service that can perfectly suit the need.

22. 2. Competitors
◦Recognizing and understanding potential competitors will aid
the entrepreneur to develop a product or service that is
unique and will surely stand out on the competition.
◦Differentiate your offerings and be unique with the goal of
creating tremendous value for the users you serve.

23. 3. Unexpected opportunities from
customers
◦Oftentimes, the most brilliant ventures come
from the most unexpected opportunities.
◦Existing problems often give rise an unexpected
opportunity.

24. 4. Irritants in the marketplace such as deterrents, problems, complaints, and
delays
◦Entrepreneurs see opportunities in situations where there is
a recurring problem or sometimes when there is no more
hope in solving problem.

25. 5. Talents, hobbies, skills, and
expertise
◦Business opportunities do not just come from
outside forces but also within the entrepreneur.
◦The entrepreneurs’ talent, hobbies, skills, and
expertise can be good source of opportunity.

26. 6. Location
◦Often, entrepreneurs just have to look at their
ecosystem and they will be able to spot a
business opportunity right away.

27. METHODS OF
GENERATING NEW
IDEAS
FOCUS GROUP DISCUSSION BRAINWRITING / INTERNET BRAINSTORMING
BRAINSTORMING PROBLEM INVENTORY ANALYSIS

28. FOCUS GROUP DISCUSSION
• A moderator handles a very open, free flowing, and in-
depth discussion with a group of people who can
provide insightful ideas about a new product or service
that will fill a market need.

29. FOCUS GROUP DISCUSSION
Example: One company interested in the electronics
market received its new concept “colour accurate
mobile screen” from focus groups of twelve persons
from various places. The concept was developed into a
new product that was a market success.The basis of the
advertising message came from comments of focus
group members.

30. BRAINSTORMING
• Similar to FGD
• An activity that allows the participants to share creative ideas
using the following rules:
• No destructive criticism or judgement is allowed.
• Wilder ideas are accepted.
• More ideas are preferred, and
• Improvement of others’ ideas is allowed
• Fun discussion with lenient rules

31. BRAINSTORMING
Example: A large company of phone used brainstorming to develop a
wireless charger that would provide a high-quality product to its
clients.The brainstorming among its executives focused on the
characteristic of the market, the design of the charger, and the
promotional value of the wireless charger for the company. Once
they are done, a representative will inform the other workers about
their new product.

32. BRAINWRITING / INTERNET BRAINSTORMING
• Exactly the same as brainstorming, except that the
channel used is not face-to-face, but in writing online.
• Results of brainwriting / Internet Brainstorming usually
take longer, as the answers depend on availability of
the participants in answering the questioner online.

33. BRAINWRITING / INTERNET BRAINSTORMING
Example:A group with six members will be given a blank card with
six rows and three columns. On the top of the grid they will write
a problem. Each group members generates and writes down
three ways to solve the problem during a five-minute period. The
form is passed to the next person, who will write three new ideas,
and so on, until each form has passed all participants.

34. PROBLEM INVENTORY ANALYSIS
• Similar to FGD except that the participants are already given
an inventory of product or service problems. The
participants will just identify from the list given the compelling
problem(s) of a potential product or service instead of
generating the ideas from them.