1. 1 Entrepreneurship 110 Ideas and Opportunities Lesson 7

2. 2 Ideas vs. Opportunities  There is a difference between ideas and opportunities. Idea – a thought or concept for a product or service. Opportunity – a need, want, problem or challenge that might be satisfied by an Entrepreneurial venture.

3. 3 What comes first, an idea or opportunity?  Sometimes an Entrepreneur will identify a problem, see (find) an opportunity, and then come up with an idea to take advantage of the situation. When the opportunity arrives first and you think of an idea to fill it, it is called market-pulled entrepreneurship.

4. 4 Market Pulled Entrepreneurship Example:  You notice that more and more people are locking their keys in their car. You are pretty sure that if there was some way to keep a spare car key close to the car people would invest in the it...this is a problem with a market. You think about it for months, and one day you think, “I’ve got it!” and create a magnetic key holder for the underbelly of automobiles (would have to find a way to avoid security issues).

5. 5  When an Entrepreneur comes up with an idea first and then attempts to find an opportunity for it, it is referred to as product or service driven entrepreneurship.

6. 6 Product/Service Driven Entrepreneurship Example  You have the best recipe for bread in the world! You search the city trying to find the best market for your bread and decide on local café and coffee shops.

7. 7 Reading  Are these readings examples of Market Pulled or Product/Service Driven Entrepreneurship?  Ice Hotel – Canada Ice Hotel – Canada Ice Hotel – Canada

8. 8 Change  Successful Entrepreneurs, as we have learned, are aware of change.  From change comes both ideas and opportunities.  There are two main types of change that an Entrepreneur focuses upon: fads and trends.

9. 9 Fads  Short lived products or services.  Arrive out of nowhere, experience a BOOM in sales and then disappear.  Some fads may reappear years later.  Examples of fads includes: –Pogs, beyblades, Tickle me Elmo PogsbeybladesPogsbeyblades

10. 10 Trends  A trend is longer lasting than a fad.  Furthermore, a trend impacts society and our lives, where a fad does not (normally). A trend changes the way that we live.  Entrepreneurs will encounter more long term success with trends than fads.

11. 11 Livestrong Bracelets  Started by champion cyclist Lance Armstrong as a way to raise money for cancer, these yellow wristbands have been sold across the world and worn as a fashion statement. The best part is the proceeds that go to help people around the world who are living with cancer. To this day, tens of millions have already been raised selling them online.

12. 12 Wide Skate Shoes with Fat Laces  The sneaker trend in the 2000's seemed to be wide skate shoes such as Puma’s or Adidas with wide laces.

13. 13  Facebook is a social networking website launched on February 4, 2004. The free-access website is privately owned and operated by Facebook, Inc. Users can join networks organized by city, workplace, school, and region to connect and interact with other people. People can also add friends and send them messages, and update their personal profile to notify friends about themselves social networkingwebsiteprivatelysocial networkingwebsiteprivately  The website currently has more than 500 million active users worldwide (1 in 14 people!)

14. 14 Reality TV  A reality show is basically unscripted television. It all started with Survivor, Big Brother, and The Amazing Race. Now due to popularity, many channels have decided to create their own reality shows, such Simple Life on FOX, The Apprentice on NBC, and The Bachelor on ABC.

15. 15 Organic Food  Organic agriculture is an example of a worldwide growth industry that agricultural producers are responding to. It can be a profitable, sustainable business for those producers interested in going through the certification process necessary to enter this market. Organics have grown at a rate of nearly 20 percent per year for the last seven years, and industry experts are forecasting continued growth. One study, undertaken by the Organic Trade Association, surveyed industry leaders about the trends in organics and where they saw the next 20 years taking them. They forecasted that overall, the everyday use of organic products of all kinds will be both accepted and routine by the year 2025

16. 16 Space Exploration  As of 2009, orbital space tourism opportunities are limited and expensive, with only the Russian Space Agency providing transport. The price for a flight brokered by Space Adventures to the International Space Station aboard a Soyuz spacecraft is US$ 20–35 million Russian Space AgencySpace Adventures International Space Station Soyuz spacecraft US$Russian Space AgencySpace Adventures International Space Station Soyuz spacecraft US$

17. 17 Alternative Fuels  In the year 2000, there were about eight million vehicles around the world that ran on alternative fuels, indicating an sustainability.  The major environmental concern, according to an IPCC report, is that "Most of the observed increase in globally averaged temperatures since the mid-20th century is very likely due to the observed increase in greenhouse gas concentrations" IPCCgreenhouse gas IPCCgreenhouse gas

18. 18 Environmental Concerns   In response to this environmental concern, most paper and pulp factories plant new trees to replace the ones they cut down for their paper making business. Of course, it takes several years for these newly planted trees to reach the same size as the trees they are replacing. Paper recycling has also helped reduce the number of trees needing to be harvested for paper, as a typical piece of paper made from wood pulp can be recycled four to seven times before the fibers become too short to reuse. To maintain the quality of recycled paper, it is usually mixed with virgin pulp wood.pulp factories

19. 19 Turning Trends into Opportunities When you spot what appears to be a trend, you have to ask yourself:  What caused this trend to start?  How long will it probably last?  What effects will it probably have?  What product or service might fill the needs generated by this trend, or how can I adapt my existing product or service to fit with this trend?

20. 20 Forecasting Trends  Entrepreneurs do not just wait for trends to happen, but instead attempt to forecast trends. Why? So that they might create ventures that take advantage of them.  Accurate forecasting depends on your ability to organize data in a way that will help you see patterns.  One of the easiest ways to forecast trends is through “Time Series Forecasting.”

21. 21 Time Series Forecasting  With this method, you plot data from the past and present on a graph.  Next, you analyze the trend that you see and make predictions about the future.  With each set of data a trend will emerge (growth trend, stable situation or declining trend) as well as lines for each (linear, curved, irregular, or cyclical).

22. There are THREE Trends: 22

23. 23 GROWTH TREND  Will be indicated by a line on your chart that is increasing or sloping upward over time.

24. 24 STABLE SITUATION  Will be indicated by a line that is neither increasing (sloping upward) nor decreasing (sloping downward) over time.

25. 25 DECLINING TREND  Will be indicated by a line that is decreasing or sloping downward over time.

26.  Each trend can be described using the following lines: 26

27. 27 LINEAR LINE  Shows a steady rate of increase or decrease.

28. 28 CURVED LINE  Shows that the rate of increase or decrease is speeding up or slowing down.

29. 29 IRREGULAR LINE  Shows that something both increases and decreases, there isn’t much of a pattern.

30. CYCLICAL LINE Shows that something both increases and decreases, although…you can pick out a pattern of growth or decline. 30