RECOGNIZING THE POTENTIAL MARKET

• The entrepreneurial process: Is a step-by-step procedure in establishing any kind of business that an entrepreneur has to undergo. It is composed of four aspects.
• THE ENTREPRENEURIAL PROCESS:

  1. Opportunity spotting and assessment
  2. Developing a business plan
  3. Determining the capital needed
  4. Running the business
• Opportunity spotting and assessment: this is the beginning of the process and is considered the most difficult
• Opportunity spotting and assessment: Entrepreneurs at this point take note of interesting trends in their environment.
• Opportunity spotting and assessment: entrepreneurs should also assess if the opportunity is aligned with their personal goals and attributes
• Opportunity spotting and assessment: Should already think in advance how they will position the product or service in the market and showcase its unique selling proportion.
• Consumers: are reliable sources of opportunity as the glaring problems in market needs originate from them.
• Major Source of Opportunity: glaring problems in the environment, problems encountered by co-entrepreneurs, new trends, processes, and developments in the environment.
• Minor sources of Opportunity: are feedback from distribution or business partners such as retailers, wholesalers, manufacturers, and technical people that the entrepreneur is working with.
• Developing a business plan: should be done when entrepreneurs have already spotted and assessed the opportunities for a market.
• business plan: will be the core guide and direction of the entrepreneurs in calculating the resources needed, assessing how to obtain these resources efficiently, and running the business sustainably.
• Determining the capital needed: is mandatory in the entrepreneurial process to calculate the resources needed to establish the business and compare this against entrepreneur's current resources
• Allowance: must be considered as well because there will be times when resources will be inadequate or unsuitable.
• Determining the capital needed: Calculate the difference between the needed capital and the existing capital. Choose the most cost- efficient supplies or service providers
• Running the business: This is the part where the entrepreneurs should use the resources allocated for the new venture
• Running the Business: the business plan prepared in step 2 should already have been implemented
• Running the business: All aspects of the business plan should be critically observed from operation, marketing and sales, human resources, finance, and strategy implementations
• Running the Business: the entrepreneurs should have a control and monitoring system to serve as a check and balance of the formulated plans.
• Scanning the market environment: Starting point of any new venture that involves understanding and knowing the intricacies of the macro-environment, microenvironment and internal environment
• Scanning The market Environment: Process of scanning the general environment, an entrepreneur can recognize various opportunities and at the same time understand thoroughly the arena where the future business will operate
• Scanning The market Environment: The process of seeking, screening, and seizing is adapted to create the most suited product and service for an opportunity
• Seeking, screening and seizing: The 3's of opportunity spotting ans assessment in the framework that most of the promising entrepreneurs use to finally come up with the ultimate product or service suited for a specific opportunity.
• Opportunity: is an entrepreneur's business idea that can potentially become a commercial product or service in the future.
• Seeking the Opportunity: is the first step and is the most difficult process of all due to the number of options that the entrepreneurs will have to choose from.
• Industry: source of the current trend
• New discovery or knowledge: these are new trends that can be corebusiness model of a new venture.
• Future Opportunities: These are projected new opportunities that can possibly affect the new business while it is running
• Consumer preferences, interest, and perception: current needs and wants of potential customers that should be discovered right away by a budding entrepreneur.
• Needs: is recognized when a customer believes that there is a difference between the current situation versus the desired condition.
• Want: is recognized when a customer believes that there is a specific product or service that can perfectly suit the need
• Macroenvironmental Sources: sources of opportunities which includes, STEEPLED, Industry, New discovery or knowledge, and Future Opportunities
• Micro-market: a source of opportunity that includes: Consumer preferences, interests, and perception; Competitors; Unexpected opportunities from customers; talents, hobbies, skills, and expertise; irritants in the marketplace; and location
• Location: entrepreneurs just have to look at their ecosystem and they will be able to spot a business opportunity right away.
• Methods of generating Ideas:

  1. Focus group discussion (FGD)
  2. Brainstorming
  3. Brain-writing or Internet brainstorming
  4. Problem inventory analysis
• 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.
• brainstorming: is a fun discussion with lenient rules
• Brainstorming: Similar to an FGD, is an activity that allows the participants to share creative ideas using the following; (a) no destructive criticism or judgment is allowed, (b) wilder ideas are accepted, (c) more ideas are preferred, and (d) improvement of others' ideas is allowed.
• Brain-writing or Internet brainstorming: exactly the same as brainstorming except that the channel used is not face-to-face, but in writing or online
• Problem inventory analysis: This method is similar to the FGD except that the participants are already given an inventory of product or service problems.