Opportunity Identification, Conceptualization and Feasibility

George Acheampong, PhD

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Opportunity Identification

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Entrepreneurial Opportunity

• A set of current social and market conditions that enable the creation of goods and services for exchange.

• Opportunity recognition requires

– Market observation and analysis

– Insight into customer needs and desires

– Creativity, innovation, invention and adaptation

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Challenges as Products

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Recognizing the Opportunity

To become an entrepreneur who can recognize business opportunities, ask yourself the following leading questions:• What frustrates me the most when I go to buy

something?• What product or services would really improve

my life?• What makes me particularly annoyed?• What product or service would eliminate that

annoyance?

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Ideas vs Opportunities

• An entrepreneurial opportunity is therefore an idea plus the under listed qualities:

– It is a customer need not want;

– It will work in the business environment; and

– It can be executed in the "window of opportunity" that already exists.

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Conceptualization

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Conceptualization

1) …..the process of putting your thoughts in a format that investors or bankers can visualize

2) ….. clarifying one's concepts with words and examples and arriving at precise verbal definitions

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Fundamentals

1. Organize your thoughts

…knowing the right things to focus on will expedite the process

2.Organize the most relevant information stakeholders need to understand about your business

This could include details such as the funding need, the return, the payback period, your unique selling proposition, management's track record, etc.

3. Turn good ideas into actionable steps

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Conceptual Analysis

• Break down complex ideas into smaller and simpler ideas that can be easily understood by stakeholders

• There are tools that help analyze concepts by simplifying the complexities and making it possible for rational decisions to be made

Example: The Business Model and Lean Canvases, Biz Plan

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Selecting a Concept

• Evaluate based on established criteria.

• Criteria should be based on the objectives of the business concept: what the concept is supposed to achieve.

• To allow for easy evaluation, methods could include:

– Weighted score

– Checklist

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Tips!

• Provide detailed and specific descriptions

• Understanding initial costs

• Identify what makes you stand out from the competition

• Think like a customer >> what are your expectations?

• Think like an investor >> what are your expectations?

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Feasibility

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Feasibility

• It is an analysis and evaluation of a proposed business idea to determine among others if the “business will work”.

• Basically, if the idea is ‘workable’ or ‘attainable’

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Feasibility (1)

• Areas considered will include whether the concept….

1. …. will be viable;

2. …. can be operated within a given cost frame;

3. …. is adequate for the potential customers and if they

exist;

4. …. will be profitable.

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Market Research

• For a business to be successful, an entrepreneur must assess the willingness of customers to buy products and services by: – Understanding the customer;

– Understanding the customers’ preferences, style and other related features in order to meet their needs.

– The feasibility is normally done through a combination of observations, interviews and analysis.

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AssessmentIn assessing the willingness of the customer to buy products an entrepreneur

must:

Consider the following

demographical factors:

– Age;

– Gender;

– Income level;

– Geographic location;

– Interests;

– Occupation; and

– Ethnic or Religious background.

Define your market along the lines of these demographic factors

Define the specific demographics of your selected market

Ensure your product is appropriate for this market

Ensure the marketing & sales methods adopted are appropriate for the market

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Assessment (1)

• You can understand your potential customers by determining the following:

where are your potential customers?

who are they, how old are they etc?

what are they like?

how do they like to buy, etc.?

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Location

Population

Personality

Behaviour

Conducting MR• Collecting field research data from friends, classmates and

relatives can be financially rewarding.

• The following questions can be adapted to your own product/service in undertaking a field research.– Would you buy this product/service?

– How much will you be willing to pay for it?

– Where would you buy it?

– How would you improve on it?

– Who is my closest competitor(s)?

– Is my product/service worse or better than my competitors’?

• Also collect information on your market and competitors from the internet and the library

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MAKING FEASIBILITY DECISIONS

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The feasibility study should help you make a data-driven decision about the

viability of your business concept.

BUSINESS CONCEPT

FEASIBILITY STUDY

VIABILITY DECISION

VIABLE CONCEPT

MOVE FORWARD

NOT A VIABLE CONCEPT

REVISE BUSINESS CONCEPT

ABANDON BUSINESS CONCEPT

ACTIVITY 16: SWOT ANALYSIS

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STRENGTH WEAKNESS

OPPORTUNITY THREATS

Is this Viable? Thank You

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