Ross

Objectives Distinguish between an idea and an opportunity. Recognize and evaluate business opportunities. Apply cost/benefit analysis that includes opportunity cost to personal and business decisions.

Where Others See Problems, Entrepreneurs Recognize Opportunities Entrepreneurs love change because it presents them with new opportunities. Entrepreneurs are leaner and faster.

Look at Problems to See Opportunities Ask yourself these questions: What would I like to buy that I can never find? What product or service would improve my life? What really annoys me? What product or service would help?

Steps to Problem Solving 1. Identify the problem. 2. Brainstorm as many ideas as possible for solutions. 3. Evaluate the solutions. 4. Select the best solution and develop a plan to carry it out. 5. Carry out the solution, but be ready to make changes to the plan. 6. Evaluate the results of your decision honestly. If the solution is not working, develop a new plan.

Use Your Imagination to Create Opportunities Businesses are created because entrepreneurs imagine products or services they wish existed. Think of the following questions: What is one thing you would like to have more than anything else? What does it look like? What does it taste like? What does it do?

An Idea is not Necessarily an Opportunity Opportunity is based on what consumers want. Idea is based on what you want You can have a very interesting idea, but if what you are selling doesn’t meet anyone else’s needs, the business will fail. “Window of Opportunity”- The amount of time that you have before someone else beats you to the customers.

A business idea is a good opportunity if: It meets a consumer need. You have the resources and skills to create the business. You can supply the product or service at the right price to be profitable. The business will work in your community. You can get it up and running before the window of opportunity closes. You can keep it going for sometime.

Changing Trends are also Opportunities Problems are just one example of opportunities that entrepreneurs need to be able to recognize. Changing trends are also opportunities.

Ten Rules of Building a Successful Business Recognize an Opportunity Evaluate it with critical thinking Write a business plan Build a team Gather resources Decide ownership Keep good financial records Stay aware of your economic of one unit of sale Keep satisfying customer needs Create wealth

The Six Roots of Opportunity PROBLEMS that your business could solve. CHANGES in laws, situations, or trends. INVENTIONS of totally new products or services. COMPETITION in beating others with price, location, quality, reputation, reliability, or hours you can operate. TECHNOLOGICAL ADVANCES where scientists may invent new technology, but entrepreneurs must figure out how to market it. UNIQUE KNOWLEDGE is when you know something that will give you a competitive edge.