Thursday, September 20, 2018

Recognizing Opportunities and Generating Ideas




a.      We can differentiate between opportunites and ideas.

What is opportunity?
Opportunity is a set of favourable circumstances that can create a need for new product, service, or business.
An entrepreneur can recognize a problem or a opportunity gap snd creates a business to solve the problem or fill the gap.
There are 4 essential qualities of opportunity:
1.      Attractive.
2.      Timely.
3.      Durable.
4.      Anchored in a product, services, or business that can creates or adds value for customer.


To capitalize on an opportunity, its window of opportunity must be open. What is window of opportunity? It’s a metaphor used to describe the ime period which a firm can realistically enter a new market. Once the market matures, he window of opportunites closes.
The most important part is ,what is the difference between opportunity and ideas?
An idea is a though, an impression, or a notion. Ideas may or not may meet the criteria of an opportunity.



b.      Learn about 3 general approaches entrepreneurs use to identify opportunities.

3 ways to identify opportunities:
1.      Observing trends
Ø  To learn how they create opportunities.
Ø  Most important trends to follow:
·         Economic trends.
·         Social trends.
·         Technological advances.
·         Political action.
·         Regulatory changes.
Ø  2 reminder:
·         Distinguish between trends and modes.
·         Consider trends that are connected one another when we brainstorming a new business idea.

2.      Solving a problem
Ø  Recognize problems and find ways.

3.      Finding gaps in the market place
Ø  Figure out what customers need and want that aren’t available in large retails.
           

c.       Personal characteristics of entrepreneurs to recognize business opportunities.

4 characteristics:
1.      Prior experience
Ø  Help entrepreneur to recognize opportunities.

2.      Cognitive factors
Ø  Entrepreneurial alertness is the ability to notice things without enganging in deliberate search.

3.      Social networks
Ø  Affects opportunity recognition.
Ø  Help to expose to more opportunity.
Ø  2 types of entrepreneurs:
-          Solo entrepreneur.
-          Network entrepreneur.
Ø  2 types of relationships:
-          Strong-tie relationships (frequent interaction).
-          Weak-tie relationships (infrequent interaction).

4.      Creativity
Ø  Process of generating a novel or useful idea.
Ø  5 stages of the creative process:
1.      Preparation: the background, experience, and knowledge.
2.      Incubation: considers the idea.
3.      Insight: flash of recognition when the idea is born.
4.      Evaluation: to scruntiny and analysed for its viability.
5.      Elaboration: the final form of idea.

d.      Techniques entrepreneurs use to generate ideas.

1.      Brainstorming
Ø  Process of generating idea about specific topic.

2.      Focus groups
Ø  A gathering of 5 to 10 people who are familiar with the topic.
Ø  Conducted by trained moderators to keep the group “focused”.

3.      Library and internet research
Ø  Libraries are often an underutilised source of information for generation business idea.
Ø  Internet research helps entrepreneurs to get to know the hottest and latest new business ideas.
4.      Other techniques:
Ø  Customer advisory boards: to discuss needs, wants, and problems that may lead to ideas.
Ø  Day- in-the- life research

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