BUSINESS PLANNING

ENT550
MODULE 2
INFORMATION SEEKING

Opportunity Recognition and the

Opportunity Assessment Plan
The key to successful domestic and
international entrepreneurship is to
develop an idea that has a market with a
need for the product or service idea
conceived.
Opportunity assessment is often best
accomplished by developing an
opportunity assessment plan.
An opportunity assessment plan is not a
business plan.
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Opportunity Recognition and the

Opportunity Assessment Plan (cont.)
An opportunity assessment plan has four
sections:
The first section develops the idea, analyzes
competitive products and companies, and
identifies the unique selling propositions.
The second section focuses on the marketits
size, trends, characteristics, and growth rate.
The third section focuses on the entrepreneurs
and management teams skills and experience.
The final section develops a time line indicating
the steps to successfully launch the venture.
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Sources of Information
Primary Sources of Information
information or data observed or collected directly from firsthand experience.
Observations. Observing and measuring the world around you,
including observations of people and other measurable events.
Interviews. Asking participants questions in a one-on-one or
small group setting.
Surveys. Asking participants about their opinions and
behaviors through a short questionnaire.
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Sources of Information
Secondary Sources of Information

Secondary data is the data that have been already collected by

and readily available from other sources.
Such data are cheaper and more quickly obtainable than the
primary data and also may be available when primary data can
not be obtained at all.
The main sources of secondary sources of information are:
(1) government (federal, state and local)
(2) trade associations
(3) commercial services
(4) national and international institutions.
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Government (federal, state and

local)
Government statistics
These may include all or some of the
following:
Population censuses
Social surveys, family expenditure
surveys
Import/export statistics
Production statistics
Agricultural statistics.
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Trade Associations
Trade associations differ widely in the
extent of their data collection and
information dissemination activities.
However, it is worth checking with
them to determine what they do
publish.
At the very least one would normally
expect that they would produce a
trade directory and, perhaps, a
yearbook.

Commercial Services
Published market research reports and other
publications are available from a wide range of
organizations which charge for their information.
Typically, marketing people are interested in
media statistics and consumer information which
has been obtained from large scale consumer or
farmer panels.
The commercial organization funds the collection
of the data, which is wide ranging in its content,
and hopes to make its money from selling this
data to interested parties.
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National and International

Institutions.
Bank economic reviews, university
research reports, journals and
articles are all useful sources to
contact.
International agencies such as World
Bank, IMF, IFAD, UNDP, ITC, FAO and
ILO produce a plethora of secondary
data which can prove extremely
useful to the entrepreneur.
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Information Sources
General Information
SCORE is a nonprofit organization that provides
free online and in-person assistance.
Small Business Development Centers provides
counseling, training, and technical assistance on
all aspects of managing a new venture.
The U.S. Chamber Small Business Center provides
start-up assistance through Web-based tools and
resources.
Other valuable Web sites include: nasbic.org,
nvca.org, nbia.org, www.fasttrac.org,
activecapital.org, c-e-o.org, entre-ed.org,
kauffman.org.
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Information Sources

(cont.)

Industry and Market Information

Plunkett - Industry data, market research,
trends, statistics on markets, and forecasts.
Frost and Sullivan - Industry specific information.
Euromonitor Information on consumer market
sizes, marketing parameters, companies, and
brands.
Gartner - Information on technology markets.
Gale Directory Library - Industry statistics and
information on nonprofit organizations and
associations.
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Information Sources

(cont.)

Competitive Company and Product

Information
Business Source Complete - Provides company
and industry information by scanning the
Datamonitor reports.
Hoovers - Provides information on both large and
small companies with links to competitors in the
same NAICS (North American Industrial
Classification System) category.
Mergent - Provides detailed company and product
information on U.S. and international companies.
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Information Sources

(cont.)

Government Sources
Census reports
factfinder.census.gov
www.census.gov/ipc/www/idb

Export/import authority
UN Comtrade
www.business.gov/expand/import-export

NAICS and Standard Industrial Classification

codes
www.naics.com/info.htm
www.osha.gov/pls/imis/sic_manual.html
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Information Sources

(cont.)

Search Engines
There are many key terms for searching the
needed industry, market, and competitive
information.

Trade Associations
Good source for country-specific industry data.

Trade Publications
Provide information and insights on trend,
companies, and trade shows from a local
perspective of the particular market and market
conditions.
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Trends
The start of a trend that lasts for a
considerable period of time provides
one of the greatest opportunities for
starting a new venture.
Trends that will provide opportunities
include: green trend, clean-energy
trend, organic-orientation trend,
economic trend, social trend, health
trend, and Web trend.
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Sources of New Ideas

Consumers
Informally monitor potential ideas and needs.
Formally arrange for consumers to express
their opinions.

Existing Products and Services

Analysis uncovers ways to improve offerings
that may result in a new product or service.

Distribution Channels
Channel members can help suggest and
market new products.
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Sources of New Ideas

(cont.)

Federal Government
Files of the Patent Office can suggest
new product possibilities.
New product ideas can come in
response to government regulations.

Research and Development

A formal endeavor connected with ones
current employment.
An informal lab in a basement or
garage.
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