Opportunity Recognition Recognizing Business Opportunities The types of situations that usually lead to the birth of a successful business

1.) Problems that a new business can solve Examples: Mother-in-law pod, solves the problem of adding on to the house to allow grandma to live with you. Dockers: Wrinkle-free pants, & stain resistant pants

2.) Changes in laws, situations, or trends Prohibition: Alcohol was illegal to sell Prohibition abolished: Alcohol companies began Trends: new styles allow new companies to emerge (colored pants, converse all- stars

3.) Inventions of completely new products or services TV’s (product) Internet (service) I-phone MP3 player Hands free phones Laptops

4.) Beat competition in one or more of the following categories Price (Wal-Mart, Old Navy) Quality (Honda) Reputation (Apple) Reliability (Verizon) Location (Starbucks, & McDonald’s, Wal- Mart with soccer field on top) Hours of operation (7-11, Open on Christmas, Wendy’s, taco bell “4 th meal”)

5.) Technological or scientifical advances Microchips Internet, using fiber optic cables to transmit information Smaller phones using smaller chips Hybrid (half gas, half electricity) Water based cars (someday)

1.) Problems that a new business can solve

2.) Changes in laws, situations, or trends

3.) Inventions of completely new products or services

4.) Beat competition in one or more of the following categories

5.) Technological or scientifical advances