is a step-by-step procedure in establishing any kind of business that an entrepreneur has to undergo
The entrepreneurial process
4 Aspects of entrepreneurial process
Opportunity Spotting and AssessmentDeveloping Business PlanDetermining the Capital Needed Running the Business
the beginning of the whole process.
Opportunity spotting and assessment
the most DIFFICULT step in the whole entrepreneurial process.
Opportunity spotting and assessment
Entrepreneurs at this point take note of interesting trends in their environment.
Opportunity spotting and assessment
Entrepreneurs can get their information through_____
Opportunity spotting and assessment
Evaluate the identified opportunityConceptualize and measure the opportunityIdentify the perceived value of the opportunity to the company and the customers.Do cost-benefit analysis of the opportunity including risk analysisMatch the opportunity with the entrepreneur’s skills and objectives Scan the strengths and weaknesses of competitors
is a comprehenshive paper that details the marketing, operational, human resource, financial, strategic direction, and tactics of the business.
Entrepreneurs should formulate a _______when they have already spotted and assessed the opportunities for a market.
Developing a business plan
Come up with a business description and analysisPerform industry analysisCome up with the marketing planPrepare the operations plan including the organizational planCome up with the financial planIdentify strategies and tactics Perform monitoring and control
This is an important and crucial step in the entrepreneurial process. Caution must be applied in computing the complete set of resources needed; and
Determining the capital needed
Calculate the______ and ______ capital needed
Calculate the existing capitalCalculate the difference between the needed capital and the existing capital. Choose the most cost efficient suppliers or service providers Develop contact and relationship with suppliers and service providers
Determine the capital needed
This is the part where the entrepreneur should use the resources allocated for the new venture.
The entrepreneur should have a _____ and ________ to serve as a checck and balance of the formulated plans. (Running the business)
control , monitoring system
Practice the leadership as a way of lifeRecognize critical success factorsIdentify existing and foreseeable problems and issuesEmploy risk-mitigating controls and monitoring systems Devise an expansion sustainability strategy
Also known as Opportunity Spotting Assessment.
Scanning the market enviroment
With this process of scanning the general environment, an entrepreneur can ______ and at the same time understand thoroughly the arena where the future business will operate.
recognize various opportunities
where the future business will operate.
is an entrepreneur’s business idea that can potentially become a commercial product or service in the future
this is the framework that most of the promising entrepreneurs use to finally come up with the ultimate product or service suited for a specific opportunity.
3S of Opportunity spotting and assessment
3S of Opportunity spotting
It involves the development of new ideas from various sources.
It is the first step in Opportunity Spotting and Assessment
Considered as rhe most difficult step
STEEPLEDIndustryNew discovery or Knowledge Futuristic Opportunities
Consumer preferences, interests, and perceptionCompetitorsUnexpected opportunities from customersTalents, hobbies, skills, and expertiseIrritants in the marketplace such as deterrents, problems, complains, and delays Location
This is a mnemonics that represents the general environment where the entrepreneur can identify business opportunities.
S - ocioculturalT - echnologicalE - conomicE – nvironmental or ecologicalP - oliticalL - egalE - thical D - emographic
This factors represent a general view of a locality’s traditions, customs, beliefs, norms, and perceptions
Some sociocultural factors to take note
Health consciousnessesEducational levelAttitude towards imported goods and servicesAttitude towards the person’s lifestyleAttitude towards product quality and customer serviceAttitude towards savings and investingEmphasis on safetyBuying habits Regional and beliefs
These are composed of innovations of an existing technology or an invention of a new one mostly on applied science and engineering research areas.
Some Technological factors to take note
Basic infrastructure levelRate of technological changeSpending on research and developmentTechnological incentivesLegislation regarding technologyCommunication infrastructureAccess to newest technology internet infrastructure and penetration.
These factors play a vital role in the scanning of marketing environment because economic factors directly affect any business venture.
Some Economic factors to take note
Growth ratesInflation ratesInterest ratesExchange ratesUnemployment trendsLabor costsStages of business cycleTrade flows and patternsMonetary policiesFiscal policies Price fluctuations
These factors should be given much importance in conducting a business especially when the world has already suffered severely from human-induced calamities.
Environmental or Ecological factors
Some Environmental or Ecological factors to take note
WeatherClimate changeLaws regulating environmental pollution Air and water pollutionRecyclingWaste management Attitudes toward “green” or ecological products
These factors mostly induced by government policies and administrations, which can have a strong effect in the entrepreneur’s business.
Some Political factors to take note
Bureaucracy Corruption levelTax policy (rates and incentives)Freedom of pressRule of lawGovernment effectiveness Political rights
Related with political factors, legal factors are government laws and regulations that can restrict or allow business activities.
Some Legal factors to take note
Anti-trust lawDiscrimination lawCopyright, patents/ intellectual property rightsConsumer protectionEmployment law Health and safety law Data protection law
are regulations that monitor the distribution of economic power in business, making sure that healthy competition is allowed to flourish and economies can grow. also referred to as competition laws, are statutes developed by the U.S. government to protect consumers from predatory business practices. They ensure that fair competition exists in an open-market economy.
These are the factors that will serve as an entrepreneur’s guide on how to be ethical in running the business.
Some Ethical factors to take note
Ethical advertising and sales practicesAccepted accounting, management, and marketing standardsAttitude toward counterfeiting and breaking patents Attitude toward development and well-being of employees.
These are the characteristics of the people in the target market.
Some Demographic factors to take note
Population growth rateAge distribution and life expectancy ratesGender distributionSocial classesFamily size and structure Minorities
This is the source of current trend on what is happening in the industry where the future business will belong to.
These are new trends that can be the core business model of a new venture.
New discovery or knowledge
These are projected new opportunities that can possibly affect the new business while it is running.
attention to small details in management
These are the current needs and wants of potential customers that should be discovered right away by a budding entrepreneur
Consumer preferences, interests, and perception
something needed to survive
something that people desire to have
Recognizing and understanding potential competitors will aid the entrepreneur to develop a product or service that is unique and will surely stand out from the competition
Oftentimes, the most brilliant ventures come from the most unexpected opportunities.
Unexpected opportunities from customers
The sticky toy was originally marketed as a wall cleaner
an annoying customer kept asking a restaurant to make his French fries thinner and crispier. George Crum, the chef, sliced them wafer thin as a joke
Spencer Silver discovered a 'low tack' adhesive in 1968 for which he found no use. Art Fry was frustrated with not having sticky notes for his church books.
John and Will Kellogg (Yeah, they were actual people) discovered the staple breakfast cereal when they accidentally left a pot of boiled grain on the stove for a number of days.
British Pharmacist John Walker was stirring his chemicals when he noticed a dried lump on the end of his stirring stick.
can be a source of business opportunity.
Talents, hobbies, skills, and expertise
Generally, entrepreneurs see ____in situations where there is a recurring problem or sometimes where there is no more hope in solving the problem
Often, entrepreneurs just have to look at their ecosystem and they will be able to spot a business opportunity right away.
These are the methods that will help entrepreneurs to come up with new business products and services
Methods of Generating Ideas
in this method, a moderator handles a very open, free-flowing, and in-depth discussion with a group of people who can provide insights.
This is an activity that allows the participants to share creative ideas by following lenient rules.
Lenient rules that should be followed in Brainstorming
* No destructive criticism or judgment is allowed;* Wilder ideas are accepted;* More ideas are preferred; and * Improvement of other’s idea is allowed.
This is exactly the same as brainstorming except that the channel used is not face-to-face, but writing or online.
Brainwriting or Internet brainstorming
this method is similar to the FGD except the participants are already given an inventory of product or service problems. The participants will just identify from the list given the potential product or service instead of generating the ideas from them.
Problem inventory analysis
It is the process of cautious selecting the best opportunity through the following:Entrepreneur’s internal and external intent, The entrepreneur should take note of the time and learn to say “no”
The entrepreneur should say no if the opportunity doesn’t have the following characteristics:
Has superior value to customers* Solves a compelling problem, issue, a need, or want* Is a potential cash cow * Matches with the entrepreneur’s skills, resources, and risk appetite
refers to the entrepreneur’s tolerance of business risks.
This is the last step in opportunity spotting and assessment.
This is the “pushing through” with the chosen opportunity.
This is the step where innovations and inventions are born
is the process of positively improving an existing product or service.
“it is a key for economic growth”
BreTechOrdBreakthrough innovationsTechnological innovations Ordinary innovations
Occur infrequently as these establish the platform on which innovations in an area are developed
Must be protected by a patent, a trade secret, or a copyright.
These innovations are technological advancements of the existing product.
Technological innovations
Occurs more frequently than breakthrough innovations.
Technological innovations
Must be protected as well.
Technological innovations
They are commonly originated from the market analysis and technology pull instead of a technology push.
Market has a strong influence in implementation of innovation.
These innovations occur ordinarily
Product or Service Planning and Development Process:
Idea StageConcept StageProduct development Stage Test marketing Stage
involves refining and development process.
In this stage, the entrepreneur determines what are the feasible products and/ or services that will perfectly suit the opportunity.
In this stage, the developed idea will undergo a consumer acceptance test.
In this stage, the entrepreneur leverages on the information generated from the prospective customers.
Product development Stage
work done from the first three stages to measure success in the commercialization of the product or service. |
What is the last step in opportunity spotting and assessment which refers to the pushing through with the chosen opportunity?
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