POTENTIAL MARKET

• Entrepreneurial process is a step-by-step procedure in establishing any kind of business that an entrepreneur has to undergo
• Opportunity spotting and assessment involves:

  • Evaluating the identified opportunity
  • Conceptualizing and measuring the opportunity
  • Identifying the perceived value of the opportunity to the company and the customers
  • Conducting a cost-benefit analysis of the opportunity including risk analysis
  • Matching the opportunity with the entrepreneur’s skills and objectives
  • Scanning the strengths and weaknesses of competitors
• Developing a business plan includes:

  • Coming up with a business description and analysis
  • Performing industry analysis
  • Creating a marketing plan
  • Preparing the operations plan including the organizational plan
  • Developing the financial plan
  • Identifying strategies and tactics
  • Performing monitoring and control
• Determining the capital needed involves:

  • Calculating the intrinsic and extrinsic capital needed
  • Calculating the existing capital
  • Calculating the difference between the needed capital and the existing capital
  • Developing contact and relationships with suppliers and service providers
• Running the business includes:

  • Practicing leadership as a way of life
  • Recognizing critical success factors
  • Identifying existing and foreseeable problems and issues
  • Employing risk-mitigating controls and monitoring systems
  • Devising an expansion/sustainability strategy
• Opportunity seeking is the first step and involves developing new ideas from various sources like macroenvironmental sources and micromarket sources
• Opportunity screening is the process of cautiously selecting the best opportunity based on internal and external intent
• The most important business opportunity elements include:

  • Having superior value to customers
  • Solving a compelling problem, issue, a need, or a want
  • Being a potential cash cow
  • Matching with the entrepreneur's skills, resources, and risk appetite
• Opportunity seizing is the last step in opportunity spotting and assessment, where the chosen opportunity is pursued with full dedication for the success of the new venture
• Product or service planning and development process has five key stages:

  • Idea stage
  • Concept stage
  • Test marketing stage
  • Commercialization stage
  • Product development stage