LESSON 2 Flashcards
This involves identifying gaps in the market and potential business ideas.
Opportunity Spotting
Passively noticing opportunities that present themselves.
Opportunity Spotting
Opportunity can arise from various sources:
- Changes in the environment
- Customer needs
- Industry needs
- Personal experiences
Is a critical step in entrepreneurship. Where an entrepreneur educates a potential business idea to determine a feasibility.
Opportunity Assessment
Opportunity assessment involves:
market research, financial analysis, risk assessment, feasibility analysis
Understanding your target market, competitors, and industry dynamics is crucial.
Market research
Evaluating the potential profitability, funding requirements, and return on investments is essential.
Financial Analysis
Potential challenges, threats, uncertainties
Risk Assessment
Determine if the idea is technically, legally, and operationally is critical.
Feasibility Analysis
Key components of opportunity assessment:
market demand, market size and growth, competitive landscape, unique value proportion (UVP), feasibility resources, profitability and revenue potential, legal and regulatory factors, risk assessment
Fundamentals of entrepreneurial
Opportunity Spotting and Assessment
Is there a need for the product or service? Who are the target costumers?
Market Demand
How big is the market, and is it expanding?
Market Size and Growth
Who are the existing competitors? What are their strengths and weaknesses?
Competitive Landscape
What makes the business idea to stand out form competitors?
Unique Value Proportion (UVP)
Does the entrepreneur have the necessary skills, technology, and capital to start and sustain the business?
Feasibility and Resources
Can the business generate sufficient revenue and profits?
Profitability and Revenue Potential
Are there any laws or regulated that might affect the business?
Legal and Regulatory Factors
What potential risks would impact the success of the business?
Risk Assessment
A comprehensive paper that details the marketing, operational, human resource, financial, strategic directions, and tactics of the business
Developing a Business Plan
A guide and direction of the entrepreneur.
Developing a Business Plan
Calculate the resources needed to establish the business.
Determining the Capital Needed
Cost the launch of business and keep it.
Determining the Capital Needed
Steps to determine the capital needs:
Identify Startup Costs, Estimate Operating Expenses, Consider Emergency Funds, Calculate the Total Capital Requires
These are one-time expenses needed to start the business.
Identify Startup Costs
These are regular costs needed to keep the business running.
Estimate Operating Expenses
It’s important to have extra money usually 3-6 months work of expenses) in case of unexpected problems.
Consider Emergency Funds
Add up all the costs above to get the total amount of money needed to start and sustain business.
Calculate the Total Capital Requires
Use the resources allocated the business.
Running the Business
It is defines as a social and managerial process by which individuals and groups obtain what they need and want through creating.
Marketing
Is the activity, set of institutions, and process for creating, communicating, delivering and exchanging offers.
Marketing
Entrepreneur need to have an innovation, and process of identifying, evaluating, and quickly capitalizing on emerging opportunities in the market, a PROACTIVE process.
Opportunity Setting
Need to have an innovation mindset so they can stand out to the marketplace.
Opportunity Setting
Is a group of potential customers that you identify to sell products and/or services to. Each group can be divided into smaller segments are typically grouped by age, location, income and lifestyle. Once you’ve defined your target audience, you’ll find it easier to determine.
Identify your Target Market
Refers to the specific group of consumers most nicely to want your product or services and therefore the group of people that should see you and campaign.
Target Audience
Why have a target audience?
For your business to thrive you need to know who your customers is. Knowing your customer will help you.
By understanding your market you can promote your product or service more effectively to the right customer group. You will know:
- What they are?
- Which media channels they were?
- What their buying habits are?
