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Identification, Evaluation and Selection of Business Opportunity

This document outlines the 4 steps to identify, evaluate and select a viable business opportunity: 1. Identify consumer needs and wants through environmental assessments, self-analysis, and studying community values. 2. Evaluate opportunities through preliminary screenings considering legal/competition issues, capital needs, and controllable/uncontrollable risks. 3. Assess types of financial and business risks involved. 4. Select opportunities by preparing organization, marketing, production, and financial plans for the most viable business plan.

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Zazliana Izatti
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139 views9 pages

Identification, Evaluation and Selection of Business Opportunity

This document outlines the 4 steps to identify, evaluate and select a viable business opportunity: 1. Identify consumer needs and wants through environmental assessments, self-analysis, and studying community values. 2. Evaluate opportunities through preliminary screenings considering legal/competition issues, capital needs, and controllable/uncontrollable risks. 3. Assess types of financial and business risks involved. 4. Select opportunities by preparing organization, marketing, production, and financial plans for the most viable business plan.

Uploaded by

Zazliana Izatti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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IDENTIFICATION, EVALUATION

AND SELECTION OF BUSINESS


OPPORTUNITY
SESSION OBJECTIVES

At the end of the session, the students should


be able to:

l identify, evaluate and select a viable


business idea and opportunity
l undertake a preliminary study before
preparing a business plan
BUSINESS IDEA AND
OPPORTUNITY

A business idea starts with an opportunity. A


business opportunity exists when there is
demand for goods and services to meet the
needs and wants of community
THE 4 STEPS

Step 1
Identification of needs and wants of consumers

The term “needs” refers to basic needs


that the consumers must have in order to live,
suc as food, clothing, shelter, education etc. The
term “wants” refers to a personal desire for
something that more than the basic needs.
Step 2
Environmental Assessment, Self Analysis and
Community Values

Environmental Assessment:
Population structure, income, trends and preferences,
Import and export data,
Local resources and technology,
Industrial linkages,
Development plans by government and private sectors,
Analysis of social problems,
Study of government’s regulations.
Step 2 (cont.)

Self Assessment:
Experience -
Knowledge and Skills
Capital
Interest
Networking

Community:
Values, Norms, Perceptions
Step 3
Evaluation of business opportunities

Preliminary screening – finding the right


opportunities, in the right place, at the right time. This
step involves an evaluation of the business
opportunities in terms of:

Legal aspects
Degree of competition
Capital requirements
Risks involved
TYPES OF RISKS

BUSINESS RISKS
Risks that can be controlled – productivity & quality
Risks that cannot be controlled – natural disasters
Risks that can be transferred – through insurance
FINANCIAL RISKS
Liquidity level – ability to pay short term debts
Loans- commit to liabilities
Credit – non-collectable debts
Step 4
Selection of business opportunities and
preparation of business plan

Organization plan
Marketing plan
Production/operations plan
Financial plan

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