Chapter 6 Opportunities, Ideas and the Enterprising Work Environment

Which comes first? Idea ?? Or Opportunity??

Market-pulled entrepreneurship Identify problem Then see opportunity

Product-driven or service-driven entrepreneurship Came up with an idea Then look for market opportunity

Many people see opportunities but Only entrepreneurs + enterprising people act on them

Following Market Trends

Market Trends Entrepreneurs: –Study trends –Identify potential changes in needs/wants –Seek out opportunities for new ventures Long-term changes = Trend Short-term changes = Fad Entrepreneurs must learn to tell a fad from a trend

Assignment: Create a Fad A fad is a temporary, passing fashion or item. It often lasts no longer than a season or up to one year. Fads are usually inexpensive and therefore can become wildly popular in a short period of time. ie, soothers, butterfly clips, treasure trolls. –This assignment asks you to design a fad. There are a few rules: The fad must be a new fad. To the best of your knowledge it cannot have been made before. It must be relatively inexpensive It must be something that you believe people would actually buy It must appeal to a section of society

Assignment: Create a Fad The assignment: Draw a detailed, coloured sketch of your fad. If you wish, you can actually make it. Write a complete description. Include colours and material needed to make it Outline your inspiration for this fad Predict how long you think this item will last. Due Date and Presentation to class:

Forecasting Trends predict future –must carefully analyse past events to predict future –organize data so one can see patterns –plot on a graph –For example: graph physical activity –see a need for fitness centres, equip graph weight of people by age –see need for Weight Watchers –See text p 121 for other examples

Current Global Trends Analyze chart on page 121 What we can learn by analyzing this chart: –World Population Developing countries decrease from 20% to 10% by 2100 –More than 50% of world’s population is under 25 The number of young people entering the workforce in the next 10 years is great than all people in current developing world’s work force.

More findings … 2150Life expectance –males 86, females 92 –todaypopulation over 65 is great than under 15 –2050seniors 25% of population B in world –unless smaller families –Food supply not enough % live in towns and cities

Time-Series Forecast –plot past and present on chart –project info about the future –growth trend- line slopes up –stable situation –declining trend- line slopes down –straight line (Linear) Sloping up or down –curveRate of increase/decrease –irregularPut in “line of best fit”

How to Conduct Research for your Business Plan If your initial research about the market supports the notion that you have a potentially successful business idea, you then need research to support the strategies and examples in your business plan. There are two types of research that you may use to create your business plan — primary and secondary

Primary research includes: Conducting surveys Handing out questionnaires Personally visiting your competitors and taking notes Asking questions of customers, potential customers, suppliers, employees, and even your own friends and family

Primary research includes: Conducting market research, such as focus groups Studying your own sales and customer records (for example, you can find sales patterns by reviewing what you sell to whom and when you make the most sales)

Secondary Research Involves utilizing all resources already available, including the Internet, business journals, trade associations, trade publications, business directories, local or national periodicals, and books. Local libraries and the Chamber of Commerce may have business records that can be helpful. A few secondary research sources include: –The Small Business Administration and their local and regional offices –Small Business Development Centers –Business Stats online

Designing a questionnaire Find out as much as you can about: –your customer –your product –why people would purchase your product –why people would purchase your product from you? What they are looking for in a supplier of this product.

Ask yourself … how could I improve the product, so people would buy? what would encourage a person to buy ____? who would be willing to pay for ___ product/ service? highest price point versus lowest price point? which demographic (age range) should I be targeting?

The way you sequence your questions will help motivate respondents to keeping doing your questionnaire

TITLE 1.Introductory statement explaining purpose 1.Personal information to validate survey data 1.Questions –exploratory in nature– use open-ended questions –specific info »use multiple choice, »attitude scales 1-10 »closed questions (yes/no) 2.Demographics »find out customer’s profile »age, education level, income 3.Thank you

Evaluating Your Ideas

Assignment Tell the class about your idea for your venture plan

Assignment Form groups of two Move desks beside each other Open textbook to page 134 Interview each other, answering the questions Be able to report back to the class about your partner’s answers

Assignment Page 135 #1 Form a group of four students. As a group: Each member must select a different product or service idea from the list in the text. Individually: Using the questions under Cost, Opportunity Cost … (p134-5) answer each question. Regroup and share your results Staple all together and hand in

The Enterprising Workplace Read pages 137 to 139 Answer Question #2 p139