Business Opportunities:

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Business Opportunities

• Identification, Evaluation And Selection

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1. Introduction
2. The process of Identifying, Evaluating and
Selecting a Business Opportunity
3. Identifying The Needs and Wants of Customers
4. Environmental Scanning and Evaluation of Self
and the Community
5. Screening of Business Opportunity
6. Summary
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due to low quality, poor performance, not user
friendly, unreasonably priced, difficult to get
or has unimpressive features
1. When a product is already available in the
market, BUT does not fulfil fully the demands and
preferences of the customers.
A business opportunity is said to exist when
there is room to offer a product or services in a
particular market which fulfils customers
demands and preferences.
2. When the customers require a product that can
help to solve their problems, for instance, a
product that can speed up the process of tapping
rubber, a liquid that shines cars without much
effort or a computer software that expedites
office work.
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Every business starts with an opportunity that
can be identified or taken advantage of within
the current environment.
A one-stop service centre
CAR BUSINESS
A car accessory shop
Tyre shop
A workshop
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The process of Identifying, Evaluating and
Selecting a Business Opportunity
Step I Identifying the needs and wants of
customers
Step II Scanning the environment and evaluating
of self and the community
Step III Screening of business opportunity
Step IV Selecting a business opportunity and
preparing a business plan
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IDENTIFYING THE NEEDS AND WANTS OF CUSTOMERS
PRODUCT
SERVICE
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Identifying The Needs and Wants Of Customers
Every business opportunity begins with the
existence of various customers needs and wants
for a particular product or service.
Basic in life humans need food, clothing and
shelter.
Human beings by nature needs more than basic
items..
There are shaped by ones life style, level of
education, purchasing power and personality.
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Human needs and wants are unlimited and are of
all kinds.
The various human needs and wants can be
categorised into products and services.
A product is something that possesses a physical
form that is required to fulfil human wants
directly or indirectly.
PRODUCT
Motorcycles, radios, books, pens, etc
A service does not possess a physical form but
has the ability to fulfil a customers wants.
SERVICES
Hair stylist, private doctors, cleaners,
educationist, etc
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Environment Scanning and Evaluation of Self and
the Community
There are three important elements that need to
be taken into consideration.
A. Environmental scanning
B. Self assessment
C. Community assessment
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A. Environmental Scanning
Environmental scanning can lead to an idea that
can be converted into a business opportunity
There are two approaches in scanning the
environment.
1. Scan the environment from the macro and micro
perspectives.
2. Scan the environment from the other factors
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• POULTRY
• Poultry farming
• Processing
• Wholesale/Supplies

• FORESTRY
• Veneer Plywood
• Logging
• Furniture
• Sawn timber

AGRICULTURAL SECTOR

• PLANTATION
• Clearing plantation
• Planting
• Processing
• Wholesales/Supplies

• FISHING
• Fishing equipment
• Deep-Sea fishing
• Fish processing
• Wholesales/Distribution

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• Structure of the population, income and tastes
• Study on import and export data
• Study on local resources and technological
  breakthrough
• Industrial linkages
• Development projects by the public and private
  sector
• Searching for business opportunities in the local
  and foreign newspapers and magazines as well as
  on the internet
• The study of local social problems
• New government policies and regulations

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Industrial linkages
THE NATIONAL CAR PROJECT (PROTON)
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Self Evaluation
Identifying business opportunities by seeing what
is available in oneself.

• Experience
• Related to former career (engineer, fashion
  design lecturer,
• Knowledge and skill
• - Knowledge to construct a building (contractor)
• Financial situation
• - Financial ability will determine the success of
  the business
• Interest
• - Related to technopreneurs interest
• Networking
• - politicians, top ranking gov officer, bank,
  insurance, etc..

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Community services

• Evaluate the norms of the community.
• Business opportunities need to be coordinated
  with the values or norms of the community in
  which the business operation is going to be
  implemented.
• It is important to ensure that a potential
  business does not go against the values or norms
  of the local community.
• Eg. (A four-digit business outlet is considered a
  profitable business opportunity and legal).
  However, it is against the values of the Malay
  community who are Muslims.
• Eg. A poultry farm located in a residential area

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Screening of Business Opportunities
After scanning the environment, evaluating
oneself and the norm of community, the
technopreneur may end up with two or more
interesting business opportunities that need to
be developed. HOWEVER, it is BEST TO SELECT
only ONE BUSINESS because it will be difficult to
implement various business projects at the same
time.
THEREFORE, the process of SCREENING BUSINESS
OPPORTUNITIES will help the technopreneur to
select a business opportunity.
This process involves four factors
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1. Legality
Make sure that the business opportunity is
LEGAL Eg. Business which involves the buying and
selling of imitation VCDs or stolen products is
ILLEGAL.
2. Monopolistic Power and Level of Competition
Select a business opportunity which is not
monopolised by any body or quarter. It will pose
many problems, such as danger of sabotage and the
difficulty of penetrating a controlled market.
Eg. Monopolised mandarin oranges
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3. Capital requirements
The business to be implemented must be
appropriate for the financial resources available
to ensure NO financial problems after the
business has started.
4. Risks
Risk is something that is uncertain and is
related to success and failure. Technopreneur
must identify the risks he/she is going to
encounter and take into consideration the
percentage of success and failure.
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Risks
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There are three categories of business risks.

• Risks that can be transferred to another party.
  (Eg. Insurance)
• Risks that can be controlled by a technopreneur
  (Eg. labour turnover, product quality, machine
  breakdown)
• Risks that cannot be controlled by a
  technopreneur (Eg. Economic downturn, natural
  disasters)

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Financial Risks

• Liquidity level
• - If liquidity low, there is a possibility a
  business will face problems of setting short
  terms debts (credit facilities, overdraft etc)
• Loans
• - Willing to pay back the loan.
• Credit
• If the company give credit facilities to the
  customers
• Foreign exchange
• - If the business involves foreign exchange, the
  business will face the risk of a fall and rise in
  the exchange rate

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Summary
After screening the various business
opportunities we have to end up with only ONE
BUSINESS OPPORTUNITY that needs to go through the
next step. WHETHER this business can be
implemented of not, it depends on a comprehensive
study of the various business functions of
MARKETING, ADMINISTRATION, OPERATION and FINANCE
Thank You