1.

OPPORTUNITY IDENTIFICATION

Opportunity identification is a competency that can be developed as are other unique

competencies and that the entrepreneurship classroom is an appropriate venue for developing the
skills necessary to improve the ability to identify opportunities.

•HOW DOES IT IMPORTANT

Opportunity recognition influences innovation by encouraging individuals and businesses to

always be thinking about new products and services needed in the marketplace.

But, it also enables continuous process improvement; that is, looking for ways to build on existing
products and services and make them better.Here is the part where you might design a method or a
process that allows saving production costs, and therefore delivering a product in a cheaper way.

•EXAMPLE FOR IDENTIFYING OPPORTUNITY

The Government of India's “Look East Policy” through North East is an example of 'opportunity'
to do business in items like tea, handicrafts, herbals, turmeric, etc.

The entrepreneur should look into various factors before deciding on the opportunity. Even if the
opportunity looks promising, an entrepreneur should look into the environmental factors before
choosing the best opportunity.

2. IDEAS GERMINATION

This is the seeding stage of a new idea. From the word germination or germinate it is the process or
growing stage where the entrepreneur recognises that an opportunity exists.

The Idea Germination was included to the Creativity Process of Entrepreneurship. The process of
creativity involves five steps:

 Idea germination- The idea germination takes place according to interest, curiosity of the
entrepreneur according to which opportunity is explored and exploited to its best potential.
 Preparation- On the basis of the idea, interest and curiosity the need is adjudged by the
entrepreneur and he starts looking for the answer to implement the idea.
 ?Incubation- This is the subconscious assimilation of information. This is the transition
period. The entrepreneur starts thinking about the idea and implementation in his sub-
conscious mind.
 Illumination- In this period of illumination the idea re-surfaces in realistic way and
entrepreneur comes out with viable plan to give practical shape by collecting raw-material,
arranging funds, policy–making for the implementation of idea.
 Verification- Also called the validation or testing stage. This is where the idea is verified to
prove that it has value. This is the most difficult phase of creativity as obstacles begin to
appear. This is the developing stage in which knowledge is developed into application.
3. PRODUCT INNOVATION

Product innovation is the creation and subsequent introduction of a good or service that is either
new, or an improved version of previous goods or services. And it is important because it can help
you create new spaces in a seemingly crowded market. By identifying the gaps and imposing yourself
into a new space, you can find an audience and satisfy consumer needs in a way that is new and
refreshing.

Induction of a new product in a company’s product line is product innovation. Product innovation
has a vital significance in the growth and development of the marketing company. Marketing companies
can make their goal Global presence by developing innovative products.

•WHY PRODUCT INNOVATION IS IMPORTANT?

Many people think there’s no need to innovate if you’re already running a successful business.
But this just isn’t true.

 Product innovation is good for the bottom line. Businesses that introduce new products earn
higher profits than those that don’t. Companies in the top quartile of new-product
introductions generate a median return on sales more than three times greater than those in
the lowest quartile.
 Diversifying brings in new opportunities. Product innovation drives expansion by opening up
new market opportunities. It also helps firms diversify their business and tap into totally
different customer groups.
 Anticipating the needs of your customers boosts retention. If you’re constantly innovating,
customers will never see you as irrelevant or out of date.
 Innovation helps you keep up with the market. Whether you innovate or not, other companies
will. And those competitors could potentially steal your customers. Innovating helps you
differentiate your business and race ahead.
 DIFFERENTIATE IDEAS, INNOVATION AND OPPORTUNITIES

IDEAS would provide value for the customer, profit for the entrepreneur and benefit for society and
can be transformed into products of services are called business ideas

A business idea is a concept that can be used for financial gain that is usually centered on a product or
service that can be offered for money. An idea is the first milestone in the process of building a
successful business. The characteristics of a promising business idea are: Innovative.

How do you know if an business idea really work?

1. Step into the right zone

Save yourself from investing in wrong area. To avoid goof up, pick a business idea based on your
personal strengths and areas of interest. Developing a business that depends on skills will save you
from problems that invariably surface when someone ventures a completely unknown business
model. You can also brainstorm, take surveys, or talk to friends for help in this regard. Also solely
asking yourself, how long you will be able to survive without making a profit? What’s your goal/vision as
an entrepreneur?

2. Know your competition

Studying your industry is important to analyze what can make your product or service unique in its
market. It is critical for startups to know competition first. Knowing who the competitors are and
what their market share is should be on the top of your list. Take both current and potential
competitors into account. Evaluate their marketing campaigns, online reputation, and price and
quality of products and services. And with this, it will help you discover unserved needs and provide
insights for your new business to please your target audience by fulfilling them.

3. Learn about your chosen business model

Choosing a suitable business model will pave the way for your success as an entrepreneur. Whether
you go for an affiliate business, B2B, or e-commerce store, each will have its own target customers,
value configurations, and core capabilities. Your capacity to meet the discrete requirements of a
business will define its success rate. Bricks & clicks, direct sales, freemium, reseller, and so forth are a
few of the most commonly chosen business models these days. And some guidance; Do not jump over
any of these options without pre-analysis. Collect more information about revenue models, cost
structures, and value propositions before you opt for a specific business model.

4. Check sustainability

The sustainability of a business idea depends on many factors, including its demand and supply. If
your product/service acts as a never-heard solution, or offers something better than existing
solutions, it will certainly go a long way. Test the water before you take your first big step in the
business world to prevent future failure. Check how scalable your product/service is and determine if
people would pay for it. All these factors will collectively determine whether or not a business idea can
yield expected returns.

5. Associate with a marketing professional.

It’s better to take the advice of a marketing professional right from beginning. Doing this will reduce
your business risk as well as overhead expenses, while providing you with details about how much
your business demands in terms of promotion and advertising. Developing a platform accordingly will
minimize half of the difficulties that can surface later and prove troublesome.

INNOVATION is applying your creativity to come up with a unique idea or solution. It is technological
invention, which lets parts do what they could not previously do. You have an engine, wheels and
axles and you put them together to invent a car. Progress depends on innovation and great innovators
can get rich.

Hence OPPORTUNITIES by contrast, is applying the innovation to bring the ideas to life. It is social
invention, which lets people do what they could not previously do. Entrepreneurs grasp the
opportunity to cash in on the innovation. They build businesses and propel the innovation forward.
Progress depends on entrepreneurship and great entrepreneurs get even richer than great innovators.

-For example, introducing a new equipment that can reduce the electricity consumption by some
percentage is an innovation and use the business opportunities to inovate and create changes to add
values to the existing product or a service.

 AUNDERSTANDING AND LEARNING DECISION MAKING STRATEGIES TO USE IN DECIDING

BUSINESS IDEA TO PURSUE

One of the most important traits of being an entrepreneur is being able to take quick decisions
that more often than not, decide the fate of your company. At the helm of the company,
entrepreneurs often have to take that one decision at the right time which can define the future of
their company.

Entrepreneurs are considered serial decision makers because they make lots of decisions every day
and are generally wired to be risk takers and aren't afraid of learning from their mistakes.

STRATEGIES TO USE

 Optimum Use of Resources

When you are living the startup life, you have to use the minimum resources you have and make the
most out of it, which is why quick decision making skills becomes even more important.

 Time Is Money & It Can Cost You

Of course the age old adage time is money, fits in here. And it even more fits in an entrepreneur’s life.
For an entrepreneur, every second, every minute of the day is essential to take his/her business in the
right direction.

 Outlive Competitors With a Fast Approach

If you have a problem at hand and don’t take a quick decision to solve it, your competitor will have
the advantage. If you are planning to be an entrepreneur you need to remember that you and your
business exist because of your customers and their needs. Your small business is not alone on the
market. It is surrounded by competitors that will wait for your indifference. Because of that, you will
need a fast decision-making process,”
 Not Just Quick But Also Correct

Although we are all talking about quick decisions what you can’t forget is taking the right decision. As
an entrepreneur, your decision making has to be fast and effective whenever a potential opportunity is
available, or when an urgent scenario demanding a split-second decision springs up lest other
competitors make same decisions before you and get a step ahead of you.

 UNDERSTAND THE IMPORTANCE OF IDENTIFYING THE NICHE

-What is a business niche?

A business niche is a specialized or focused area of a broader market that your business serves
specifically.

Matt Woodley is an online entrepreneur and he said that creating a business in a niche market
sometimes gives entrepreneurs the ability to charge higher rates for their products or services. The
supply and demand ratio, especially for those pioneering a new industry sector, can be extremely
lucrative and gives you the chance to become the expert and thought leader in your field.

Finding a niche is important for small business owners who want to not only create a steady stream of
revenue, but also establish a loyal audience.

-What is a niche strategy?

Select your target audience. To identify your niche, you can begin by selecting the general market. It is a
good approach is to focus on an area where you are knowledgeable, and then identify subtopics within
that.

Define an unmet or underserved need. Analyze your target audience and identify gaps in the
marketplace. Choose a sector that also has anticipated growth.

Research your customer base. Researching your target audience to understand their needs, goals,
motivations, frustrations and expectations. Development is essential; although this is something you
should do at the start of your business, you should also perform regular maintenance checks to reassess
your customer base and competition.

Create your business plan. Cate a plan in which you define exactly what you'll provide and the need it
will meet, describe your ideal customer, and decide on a pricing model. Fine-tune your business idea to
reflect what you've learned about your target audience.

Market your business to your specific audience. Just as your product or service is niche, your marketing
efforts should be focused as well. Targeted ads, blog posts and podcasts are invaluable tools for getting
your message out to people likely to be interested in your niche business idea. For example, selling
vegan baked goods would be to appear on a podcast or local radio show dedicated to healthy eating for
those people who are vegetarians.
-HOW TO IDENTIFY BUSINESS NICHE?

Experts said there are a few key consumer elements that entrepreneurs should consider when
trying to identify and dominate a niche market.

1. Easily identifiable customers

Potential customers who are easy to see are a hallmark of a great business niche. Jerry
Rackley, chief analyst at marketing research and advisory firm Demand Metric, said it should
be easy to identify who would do business with you based on a set of reliable characteristics.
Thus if you can't put your ideal customers into an identifiable segment, your business plan is a
no-go.
2. Easily accessible customers
For a business niche to be profitable, your potential customers must also be accessible, and
accessing them must be affordable. Orotherwise, your great idea will be dead in the water. And
lack of accessibility is also a business plan no-go.
3. An underserved or neglected market
Many markets become oversaturated with small businesses or startups eager to get in on the
action. But for a business niche to really stand out, it should be underserved or even
neglected.
4. A large potential market
For your business to be profitable, your market and niche must be large enough that you can
make money selling your products and services.
 CONDUCT AND DESIGN A MEANINGFUL MARKET STUDY/RESEARCH

-WHAT IS A MARKET STUDY/RESEARCH?

Market study/research is the process of gathering information about your target market and
customers to verify the success of a new product, help your team iterate on an existing product, or
understand brand perception to ensure your team is effectively communicating your company's value
effectively.

-HOW TO DO MARKET?

 Your competitors also have experienced individuals in the industry and a customer base. It's
very possible that your immediate resources are, in many ways, equal to those of your
competition's immediate resources. Seeking a larger sample size for answers can provide a
better edge.

 Your customers don't represent the attitudes of an entire market. They represent the attitudes
of the part of the market that is already drawn to your brand.

-WHY DO MARKET STUDY/RESEARCH?

Ultimately, market research allows you to get information from a larger sample size of your target
audience, eliminating bias and assumptions so that you can get to the heart of consumer attitudes.

Market research also provides insight into a wide variety of things that impact your bottom line,
including:

 Where your target audience and current customers conduct their product or service research.
 Which of your competitors your target audience looks to for information, options, or
purchases.
 What's trending in your industry and in the eyes of your buyer.
 Who makes up your market and what their challenges are.
 What influences purchases and conversions among your target audience.
 Consumer attitudes about a particular topic, pain, product, or brand.
 Whether there's demand for the business initiatives you're investing in.
 Unaddressed or underserved customer needs that can be flipped into selling opportunity.
 Attitudes about pricing for a particular product or service.
 As a result, you can make better business decisions from knowing the bigger picture.
 IDENTIFY STRATEGIES IN FINDING MENTOR AND FUND SOURCES.
The right mentoring relationship can be a powerful tool for professional growth — it can lead to
a new job, a promotion or even a better work-life balance. Envisioning your dreams this way
allows you to break down lofty ideas into individual goals that are easier to accomplish through
short-term steps.
-Finding the Right Mentor
 Know your goals (both short and long term). What do you want to accomplish
professionally in the next three months? Can you do it in your current role or will it
require you to switch jobs? The more specific you are with your goals, the easier it will be to
find the right mentor. One strategy to create effective, easily achievable goals is to work:
 MART
 Specific
 Measurable
 Achievable
 Relevant
 Timebound
 Who do you look up to? Whose job would you like to have in the next five, 10 or 15 years? Is
this person inside or outside your workplace? Who is your immediate role model where you
work? Keep a running list of the jobs and people you are visualizing. Consider an identity-based
mentor in your organization, especially if you need to talk about issues you're facing as an
underrepresented person in your professional surroundings.
 Do the research. You may or may not be able to ask one of those people to be your mentor,
but what are the stepping stones to get to someone in a similar position? Take notes on the
path that person took to get to where they are today.
 Be cognizant of your existing network. The more aware someone already is of your work and
abilities, the more effective they will be at mentoring you. Think about whether someone is
already informally mentoring you — can you ask them to help you? If someone isn't aware of
your work or you've never talked to them, look for a connection. Make sure the person you
are thinking about also has the expertise you're looking for.
 UNDERSTAND VARIOUS BUSINESS MODELS.

-WHAT IS BUSINESS MODEL?

The term business model refers to a company's plan for making a profit. It identifies the products
or services the business plans to sell, its identified target market, and any anticipated expenses.

-HOW DOES IT WORK?

-Business models are important for both new and established businesses. They help new,
developing companies attract investment, recruit talent, and motivate management and staff.
Established businesses should regularly update their business plans or they'll fail to anticipate trends
and challenges ahead. Business plans help investors evaluate companies that interest them.

-KEY TAKEAWAYS

 A business model is a company's core strategy for profitably doing business.

 Models generally include information like products or services the business plans to sell,
target markets, and any anticipated expenses.
 The two levers of a business model are pricing and costs.
 When evaluating a business model as an investor, ask whether the idea makes sense and
whether the numbers add up.

-TYPES OF BUSINESS MODEL

There are many types of busines models but here are the Four Traditional Types of Ecommerce
Business Models:

1. B2C – Business to consumer- B2C businesses sell to their end-user. The B2C model is the
most common business model, so there are many unique approaches under this umbrella.
Anything you buy in an online store as a consumer — think wardrobe, household supplies,
entertainment — is done as part of a B2C transaction.
2. B2B – Business to business- In a B2B business model, a business sells its product or service to
another business. Sometimes the buyer is the end user, but often the buyer resells to the
consumer. B2B transactions generally have a longer sales cycle, but higher order value and
more recurring purchases.
3. C2B – Consumer to business- C2B businesses allow individuals to sell goods and services to
companies.In this ecommerce model, a site might allow customers to post the work they
want to be completed and have businesses bid for the opportunity. Affiliate marketing
services would also be considered C2B. This approach gives consumers the power to name
their price or have businesses directly compete to meet their needs. And recent innovators
have creatively used this model to connect companies to social media influencers to market
their products.
4. C2C – Consumer to consumer- A C2C business also called an online marketplace — connects
consumers to exchange goods and services and typically make their money by charging
transaction or listing fees. C2C businesses benefit from self-propelled growth by motivated
buyers and sellers, but face a key challenge in quality control and technology maintenance.

 CREATE AND PRESENT A SOUND BUSINESS MODEL CANVAS.

The Business Model Canvas is a framework that scales from products to startups to
business units to entire firms. For existing products and firms, a better understanding of these
building blocks can uncover new opportunities to create, deliver, and capture value.
-HOW DOES BUSINESS CANVAS HELP?
Business Model Canvas (MBC) is a neat, straightforward and clear way of illustrating and
investigating your business model, either for start-ups or operating businesses. It can help you
with gathering insights about customers’ needs, value proposition, product/market fit,
distribution channels, costs and expenses, income channels, key partners and more.
-How to use the Business Model Canvas
First, try to complete the canvas with all the information, thoughts or ideas that you have
gathered so far. Then you can discuss the remaining segments with your team or use some
discussion tools and brainstorming sessions to fill in the blanks, evaluate the structure, and
bind segments to each other properly. So usually it will be necessary to review, adjust or
correct the information that you have initially provided.
-THE 9 DIFFERENT SEGMENTS ON A BMC SHEET AS FOLLOWS:
1. Key Partners – Who are your key partners/suppliers? What are the motivations for the
partnerships?
2. Key Activities – What key activities does your value proposition require? What activities
are important the most in distribution channels, customer relationships, revenue
stream…?
3. Value Proposition – What core value do you deliver to the customer? Which customer
needs are you satisfying?
4. Customer Relationship – What relationship that the target customer expects you to
establish? How can you integrate that into your business in terms of cost and format?
5. Customer Segment – Which classes are you creating values for? Who is your most
important customer?
6. Key Resources – What key resources does your value proposition require? What resources
are important the most in distribution channels, customer relationships, revenue
stream…?
7. Distribution Channels – Through which channels that your customers want to be reached?
Which channels work best? How much do they cost? How can they be integrated into your
and your customers’ routines?
8. Cost Structure – What are the most cost in your business? Which key resources/ activities
are most expensive?
9. Revenue Stream – For what value are your customers willing to pay? What and how do
they recently pay? How would they prefer to pay? How much does every revenue stream
contribute to the overall revenues?