CONSIDERATIONS FOR EVALUATION BUSINESS OPPORTUNITIES

ENTREPRENEURIAL PROCESS
The process of starting a new venture is embodied in the entrepreneurial process. An entrepreneur must find, evaluate , and develop an opportunity by overcoming the forces that resist the creation of something new.

The process has 4 distinct phases: 1) identification of the evaluation of the opportunity 2) development of business plan 3)determination of the required resources 4) management of the resulting enterprise

IDENTIFY AND EVALUATE THE OPPORTUNITY

Opportunity identification and evaluation is quite a difficult task. The process by which an entrepreneur comes up with the opportunity for a new venture.

 Most entrepreneurs do not have formal mechanisms for identifying business opportunities .some of the sources are consumers , business associates, members of the distribution system, and technical people. Each opportunity must be carefully screened and evaluated.

 The evaluation of opportunity is the most critical element of the entrepreneurial process. this evaluation process involves looking at the creation and length of the opportunity, risks and returns, goals of entrepreneur, and its competitive environment.

 It is important to the entrepreneur to understand the cause of opportunity. the factors that resulting opportunity have a different market size and time dimension. The market size and the length of the window of opportunity form the primary basis for determining risks and rewards.

 window of opportunity is the time period available for creating new venture. the opportunity must fit personal skills and goals of entrepreneur. the entrepreneur be able to put forth the necessary time and effort required to make the venture succeed.

 An opportunity analysis plan is also known as opportunity assessment plan. This is shorter, focus on opportunity and provide the decision to act on the opportunity.

opportunity analysis plan includes:a description of the product or service. an assessment of the entrepreneur and the team. specification and resources needed to translate the opportunity into a viable business venture. source of capital to finance the initial venture .

REFERENCE
Entrepreneurship (5th edition)Robert .D. Hisrich Michael . P. Peters

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