Entrepreneurship and ethics mod 3 for BU

1. Opportunity
Assessment
ChetanT.R
Module 2

2. Opportunity Identification and
Selection
 Opportunity is defined as a time or set of
circumstances that makes it possible to do
something or to achieve something.

3. Factors influencing Business
Opportunities
 Accessibility of Industrial Inventory
 Chance of export
 Congregation of information regarding the
tentative industry
 Ease of use of internal resources
 Form of external support
 Height of risk in the business
 Level of demand
 Analysis of existing units performance

4. Business Environment
 Business Environment is an environment in
which business is conducted and
encompasses of factors that affect a
Company’s operations including customers,
competitors, suppliers, distributors, industry
trends, substitutes, regulations, government
activities, demographics, social and cultural
factors, innovation, andTechnological
developments

5. Features of Business
Environment
 Totality of external forces
 Specific and general forces
 Dynamic in Nature
 Uncertainty
 Relativity

6. Importance of Business
Environment
 Firm to identify opportunities and getting the
first mover advantage
 Firm to identify threats and early warning
signals
 Coping with rapid changes
 Improving performance

7. Environmental Analysis
 Refers to the evaluation of the possible or
probable effects of external forces and
conditions on an organisation’s survival and
growth strategies

8. Benefits of Environmental
Analysis
 Identification of strength, Weakness,
Opportunities andThreats
 Keeping the Business enterprise alert
 Keeping business flexible and Dynamic
 Understanding future problems and prospects
 Making business Socially acceptable
 Ensures optimum utilisation of resources
 Ensures survival and growth
 Maintaining adaptability to changes

9. Process of Environmental
Analysis
Step1:
Identification of relevant environmental
variables
Step2:
Collection of Information
Step 3:
Forecasting
Step 4:
Monitoring

10. Limitations of Environmental
Analysis
 Environmental analysis does not predict the
future, nor does it eliminate uncertainty for
any organization
 It is not a sufficient guarantor of
organisational effectiveness
 The potential of environmental analysis is
often not realised bcos of how it is practiced
 Not much reliable without secondary facts
supporting it.

12. Steps for New Venture start-
ups
Identification
and
evaluation of
the
opportunity
Developing a
business plan
Determining
the resources
required
Project
appraisal and
feasibility
plan
Managing the
Venture

13. Challenges of New Venture
StartUps
Start up Funding
Misunderstanding the market for a
startup
StartupCash flow problems
Creating the right culture in your
startup
Patient protection and affordable care
act

14. PitFalls in selecting New
Ventures
Create agile
business
systems
Passion
without a plan
Selling too
cheaply
Ineffective
Marketing and
advertising
Understanding
Capital
Lack of
management
oversight
Lack of
specific skills

15. Critical Factors for New
Venture Development
Use a Contract
Create responsive
business systems
Understand your
payment terms
Know the difference
between employee and
independent contractor
Have legal agreements
handy

16. Why New Venture fails
 No business plan
 Under funded
 Lack of operating goals and objectives
 Failure to measure Goals and Objectives
 Failure to pay attention to Cash flow
 Failure to understand the industry and the target customer
 Poor or no marketing programs
 Underestimating the competition
 Not cost competitive
 Lack of attention to accounts receivables and inventory
 Poor people management skills

17. Sources of Finance for New
Venture
 Equity Financing:
 Exchanging a a portion of ownership of the business for a
financial investment in the business
 Life Insurance policies
 Home equity loans
 Friends and relatives
 Venture capital
 Angel Investors
 Government grants
 Equity offerings
 IPO – Initial public offerings
 Warrants
 Personal Savings

18. Sources of Finance for New
Venture
 Debt Financing
 Friends and relatives
 Commercial Finance companies
 Banks and other commercial Lenders
 Government Programs
 Bonds

19. Sources of Finance for New
Venture
 Lease