Opportunity Recognition

Journal #7

What really annoys you? What products or services might

help?

Or What business are you thinking of

starting?

Ch. 4 Opportunity Recognition

Read Page 42-44 and answer these questions.

Entrepreneurs recognize problems as ______?

What did Georgette Klinger start and why?

Entrepreneurs hate change. True or False?

Entrepreneurs are leaner and faster. Explain this statement.

What is the difference between an idea and opportunity?

What does “window of opportunity mean? What simple principle did Russell Simmons

apply?

Opportunity Recognition

The identification of unfulfilled desires in the market place

The creation of ideas for services or products that satisfy those market needs

Market:

a group of people potentially

interested in buying a product or

service.

Opportunity Recognition

Product vs. Service

Product: something tangible that exists or is made, usually to be sold

Service: Intangible work providing time, skills or expertise in exchange for money

Opportunity Recognition

The Internal Entrepreneur

– Turns hobbies, skills, interests into business opportunities

Ex: Ben Cohen & Jerry Greenfield, Ben & Jerry’s Homemade, Inc.

Ex: Jasmine Jordan, Tools for Living Magazine

Opportunity Recognition

Six Roots of Opportunity

1. Problems that your business could solve2. Changes in laws, situations and trends3. Inventions of totally new products or

services4. Competition5. Technological advances6. Unique Knowledge

1. Problems that your business could solve2. Changes in laws, situations and trends3. Inventions of totally new products or services

4. Competition– Beat competition based on quality, reputation,

reliability, location, hours of operation, price.

5. Technological advances6. Unique Knowledge

Six Roots of Opportunity

1. Problems that your business could solve2. Changes in laws, situations and trends3. Inventions of totally new products or services4. Competition

5. Technological advances– Scientists may invent technology, entrepreneurs

figure out how to sell the technology

6. Unique Knowledge

Six Roots of Opportunity

1. Problems that your business could solve2. Changes in laws, situations and trends3. Inventions of totally new products or

services4. Competition

5. Technological advances6. Unique Knowledge of one’s

neighborhood, friends and community

Six Roots of Opportunity

External Opportunity Recognition Ex:

Opportunity Business Idea

Problem: pollution Private Recycling Companies

Change: 9/11 Airport Security Training Services

Invention: busy people who need to clean their homes

roomba

Competition: cell phone nighttime minutes

AT&T’s nighttime minutes start at 9pm while Sprint’s start at 7pm.

Technological Advances: mp3 and digital music players

Apple iPod

Unique Knowledge: BMX bike racing culture in Santa Fe Bike Store

Opportunity recognition game

Your group will decide where each business opportunity goes on the 6 six roots of opportunity game board.

Good luck

Business- Formation Opportunities

Russel Simmons started Def Jam with a friend. – Money was needed from both partners– Different contacts

Everyone you know may have skills, equipment, or contacts.

Biz Tip: When putting team together, organize it so that everyone shares ownership.

Cost/Benefit Analysis Every opportunity will require an investment. Investment is money, time, or energy on your

part to make a profit. Cost- Money and time you will have to invest Benefit-The rate of return on your money or

advancement of career.

If the Benefits outweigh the cost, the investment will probably be worthwhile.

Opportunity cost Opportunity Cost is the value of what must be

given up in order to obtain something else. EX. Army Benefits

– Training and work experience– Travel– Money for college

Cost– College immediately– Start a business – Start working

Pg. 49 of your book.

Opportunity Recognition Game

Students will be split into groups of 3-5 and will be given the board and cut outs.

Students will be given time to post the cut outs on the correct opportunity box.

Once I say it’s correct you will need to cut out pictures from a magazine that represents each root of opportunity.

Good luck!

The Good

Business Idea

Vs.

The Good Business Opportunity

Idea vs. Opportunity

Idea Business solution that

has yet to be researched and analyzed

Opportunity A carefully researched

business idea that can earn a profit

Think feasibility

Business Idea Brainstorm

In groups of 3, brainstorm a business idea– Think feasibility– Think from a student perspective

– What can you do tomorrow with the resources you have today?

Some stats on obesity

inhabitants have gained 360 million pounds (163 million kgs) over the last decade

obesity costs the state billions of dollars in health care, lost productivity and workers' compensation.

Portion sizes

Opportunity Screen

1. Is it attractive to customers?

Will it work in your business environment?

Is there a window of opportunity?

Do you have the resources and skills to create the business or do you know someone who does?

Can you supply the product or service at a price that will be attractive to customers yet will be high enough to earn you a profit?

Is it attractive to customers?

2. Will it work in your business environment?

Is there a window of opportunity?

Do you have the resources and skills to create the business or do you know someone who does?

Can you supply the product or service at a price that will be attractive to customers yet will be high enough to earn you a profit?

Opportunity Screen

Is it attractive to customers?

Will it work in your business environment?

3. Is there a window of opportunity?

Do you have the resources and skills to create the business or do you know someone who does?

Can you supply the product or service at a price that will be attractive to customers yet will be high enough to earn you a profit?

Opportunity Screen

Is it attractive to customers?

Will it work in your business environment?

Is there a window of opportunity?

4. Do you have the resources and skills to create the business or do you know someone who does?

Can you supply the product or service at a price that will be attractive to customers yet will be high enough to earn you a profit?

Opportunity Screen

Is it attractive to customers?

Will it work in your business environment?

Is there a window of opportunity?

Do you have the resources and skills to create the business or do you know someone who does?

5. Can you supply the product or service at a price that will be attractive to customers yet will be high enough to earn you a profit?

Opportunity Screen

1. Is it attractive to customers?

2. Will it work in your business environment?

3. Is there a window of opportunity?

4. Do you have the resources and skills to create the business or do you know someone who does?

5. Can you supply the product or service at a price that will be attractive to customers yet will be high enough to earn you a profit?

If you answer no to even one question, refine the business idea!

Opportunity Screen

“Choose a business idea you can start tomorrow with the skills and resources you have today.”

Katerina ZachariaYouth Entrepreneurship Educator and AdvocateNFTE Certified Entrepreneurship Teacher

Idea vs. Opportunity

Perform a S.W.O.T. Analysis

During Concept Development

Perform a S.W.O.T. Analysis

– Determine the Strengths and Weaknesses of your resources, knowledge, team.

– Determine the Opportunities for your business idea, and the Threats to its potential success.

During Concept Development

S.W.O.T. Analysis

Strengths Weaknesses

1.

2.

Opportunities Threats

1.

2.

The Entrepreneur, Team The Marketplace

Building S.W.O.T. into the business plan

Strengths Qualifications &

Competitive Adv.

Opportunities Opportunity for your bus. in market

Weaknesses & Strategy for

Threats minimizing risk &

risk management

Why Develop a Business Plan?

1. Forces the entrepreneur to think, critically and unemotionally, about every aspect of a business idea.

2. Serves as a guide for the owner as he or she manages the business towards its success.

3. Shows potential investors that the business is thoughtfully planned.

4. Expresses specifically how the business and its investors can potentially make a profit.

Business Plan Work Groups Brainstorm business ideas, choose 1 Evaluate the opportunity

– SWOT Analysis– Opportunity Screen

Develop business idea in 3 clear sentences Complete Pg. 586 Your business idea

– 1-5

Pg. 588 Opportunity Recognition– 1-2

Pg. 589 Core Beliefs – 1-2