1. Opportunity Recognition
Chapter 3

2. Describe the challenges and rewards of entering a family business.
3.1
Identify the importance of personal values and goals in choosing an entrepreneurial pursuit.
Describe the challenges and rewards of entering a family business.
List the benefits and drawbacks of buying a business.
Describe how you can evaluate a business opportunity.
Compare the advantages and disadvantages of starting your own business.
Section 3.1 Understanding Entrepreneurial Trends

3. 3.1
The ability to recognize new opportunities and to think creatively is essential for success in today’s market.
Section 3.1 Understanding Entrepreneurial Trends

4. Opportunity What would I like to buy that I can’t find?
Opportunity- based on what consumers want- not what you want
What would I like to buy that I can’t find?
What product or service would improve my life?
What really annoys me? What product or service would help?

5. Use your Imagination
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?

6. The Six Roots of Opportunity
Problems that your business could solve

7. The Six Roots of Opportunity
Changes in laws, situations or trends

8. The Six Roots of Opportunity
Inventions of totally new products or services

9. The Six Roots of Opportunity
Competition- If you can find a way to beat the competition based on price, location, quality, reputation, reliability, or hours, you can operate a very successful business

10. The Six Roots of Opportunity
Technological Advances- Scientists may invent new technology, but entrepreneurs must figure out how to market it.

11. The Six Roots of Opportunity
Unique Knowledge- You have unique knowledge of your neighborhood, your friends and your community.

12. Current Entrepreneurial Trends
One way to identify business opportunities is to study current trends that provide opportunities for entrepreneurs.
Section 3.1 Understanding Entrepreneurial Trends

13. Current Entrepreneurial Trends
Internet businesses
corporate ventures
service businesses
strategic alliances
home-based businesses
technology
socially-responsible non-profit businesses
outsourcing
Section 3.1 Understanding Entrepreneurial Trends 13

14. Learning to Recognize Opportunity
Entrepreneurial thinking is about generating ideas and recognizing opportunities.
Section 3.1 Understanding Entrepreneurial Trends

15. Creativity and Innovation
Creativity is the activity that results in innovation.
innovation a new way of doing things
Section 3.1 Understanding Entrepreneurial Trends

16. Idea Versus Opportunity
You generate ideas by thinking creatively. Opportunities are ideas that have commercial potential.
Section 3.1 Understanding Entrepreneurial Trends

17. Cost/Benefit Analysis
Before making any investment, look carefully at two factors:
Costs- money and time you will have to invest, and
Benefits- the rate of return on your money or the advancement of your business or career.

18. Opportunity Cost
The value of what must be given up in order to obtain something else

19. Creative Sources of Ideas
To identify creative ideas:
Observe the world around you.
Watch for demographic changes.
Be an avid reader.
Consider your interests, hobbies, and work experiences.
Consult outside sources of information.
Section 3.1 Understanding Entrepreneurial Trends

20. Creative Sources of Ideas
To identify creative ideas:
Observe the world around you.
Watch for demographic changes.
Be an avid reader.
Consider your interests, hobbies, and work experiences.
Consult outside sources of information.
Section 3.1 Understanding Entrepreneurial Trends

21. SWOT Analysis
A way to evaluate a business opportunity is to explore its:
Strengths- Your entrepreneurial ability and contacts
Weaknesses- What you will face, from lack of money or training to lack of time or experience
Opportunities- Lucky breaks or creative advantages you can use to get ahead of the competition
Threats- Anything that might be bad for business, form competitors to legal problems.