Chapter Four: Opportunity Recognition Visions and Ventures

OPPORTUNITYISNOWHERE Read this sentence out loud. OPPORTUNITYISNOWHERE

Opportunity Recognition Many famous businesses started because an entrepreneur wanted to solve a problem. Most entrepreneurs enjoy problem solving.

Opportunity vs. Idea There is an important difference, however, between an idea and an opportunity. An opportunity is based on what consumers want – not necessarily what you want. You can have a very interesting idea for a business but if what you are selling doesn’t meet anyone else’s needs, the business will fail.

Window of opportunity You will also need to be able to get your business up and running in your “window of opportunity.” This is the amount of time you have before someone else beats you to the customers. You might have a great idea but if competitors have had the same idea and get it to the market place first, your window of opportunity might be closed.

When is it a good idea? A business idea may be a good opportunity if: It is attractive to customers. Who are your customers here at FRC? It will work in your business environment. Will it work in the hallway here at FRC? It can be executed in the window of opportunity. Are you the first or the last to offer that idea? You have the resources and skills to create the business. If you made it to this part, NOW ask yourself - are YOU capable of doing this?

What is the difference between… An Idea and an Opportunity… What is the difference between a regular idea and opportunity and: An Entrepreneurial Opportunity An Entrepreneurial Idea

ENTREPRENEURIAL OPPORTUNITY A need, want, problem, or challenge that can be addressed, solved and/or satisfied by an innovative venture. Example: You don’t want to use a knife to spread butter because you’ve already done the dishes

ENTREPRENEURIAL IDEA A specific, new way to satisfy a need or want, overcome a problem or meet a challenge. Example: Explain why this picture represents an idea to solve that problem.

Another example: Entrepreneurial Opportunity (Problem): How do you get more privacy in a public space? For example; employees working long hours or traveling to work on a bus or subway would benefit from a 15 minute nap. Entrepreneurial Idea (Solution): Brainstorm an idea that could be produced and sold.

2. Have an idea to meet that opportunity 1. What is the problem to solve? 1. See an opportunity 5. Sell your solution. 2. What is the solution? 5. Implement the plan 2. Have an idea to meet that opportunity 4. Develop a plan 3. Research the idea 4. What are the steps for the solution to work? 3. How will the solution work best? Steps for the Future

The elements of entrepreneurship What are the 4 main elements of entrepreneurship?

The Elements of Entrepreneurship You Money Business Idea

Types of Opportunity An Entrepreneurial Opportunity may come in the form of something that: You are interested in, Customers are interested in, Or both. Which do you think is best? Explain.

Internal Opportunity Starting a business is easier if an entrepreneur can work on something they are passionate about. An internal opportunity is one that comes from inside you – from a hobby or passion that you have. A passion or hobby doesn’t guarantee a successful business unless customers are found who share that same passion or hobby.

External Opportunity You notice that people in your neighbourhood are complaining about the lack of available day care… This is an example of looking outside of yourself for business ideas and finding an external opportunity. You decide to you start a day care centre. The business might succeed, but you could burn out quickly if you aren’t the type of person who likes to be around screaming toddlers all day long. That’s the problem with external opportunities – your business idea may fill a need for the market, but you may not have the interest, skills, or passion to enjoy putting in the time and energy needed to make it a success.

Internal and External Opportunities The best business opportunities are both internal and external. Ideally, a business that you are passionate about also meets an external need in the marketplace.

Important Business Terms It is important for entrepreneurs to be familiar with business terms for many reasons (negotiating for example). Review the following terms and make sure you are prepared for them on the upcoming test:

What does ‘economy’ mean? The system a group of people creates through making these decisions is called an economy.

All economic systems attempt to answer four basic questions. ? ? What quantity of goods and services should be produced? What goods and services should be produced? All economic systems attempt to answer four basic questions. ? ? How should goods and services be produced? For whom should goods and services be produced?

What is Economics? The study of how these different groups answer these questions is called economics.

Free Enterprise system Most democratic nations have a free enterprise or free market system. An economy is a country’s financial structure. It is the system that produces and distributes wealth in a country. The Canadian economy is called a free enterprise or free market because people have important rights: to make economic choices of what products to buy; to own private property; and to choose to start a business and complete with other businesses

The Economic Questions You do not have to get permission from the government to start a business, although you do have to obey laws and regulations.

Supply and Demand Theory Supply is continually shifting in the marketplace. supply the amount of goods or services that producers are willing to provide In a free enterprise system, the price of a product is determined by demand. demand the quantity of goods or services that consumer are willing and able to buy at various prices

Supply and Demand Theory If something is in heavy demand, but in short supply, prices will go up.   If something is in heavy supply, but in short demand, prices will go down.

What is capitalism? This economic system is also called capitalism because the money used to start a business is called capital.

Start-up Resources When entrepreneurs are ready to start up a new business, they must use creative talent to put together the necessary start-up resources. start-up resources the capital, skilled labor, management expertise, legal and financial advice, facilities, equipment, and customers needed to start a business

Business Terms For the upcoming test, create a list of all the business terms used throughout all of the Chapters (1-4). You will be able to use this list to help prepare yourself for the test. Show Mr. Halstead your list onscreen once you have completed it.

End of Chapter Four: Opportunity Recognition