Entrepreneurial

Opportunity Identification and

Assessment

OPPORTUNITY
IDENTIFICATION.

Prof. Rizwan U. Farooqui, Ph.D.

What is an Opportunity?

Opportunity Defined

Copyright 2016 Pearson Education, Inc.

An opportunity is a favorable
set of circumstances that
creates a need for a new
product, service, or business.

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Three Ways to Identify an Opportunity

Copyright 2016 Pearson Education, Inc.

Prof. Rizwan U. Farooqui, Ph.D.

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SCANNING THE ENVIRONMENT

Changes in the social and political environment
create business opportunities.
These changes create demand for new products
and services.
Business opportunities can also be identified by
looking at needs of local communities.
When business opportunity matches with
strength of entrepreneur, it becomes ideal
situation.

SCANNING THE ENVIRONMENT

Prof. Rizwan U. Farooqui, Ph.D.

EXAMPLES OF POSSIBLE SOURCES OF

BUSINESS IDEAS
Based on
Work experience
Hobby & interest
Family business
Business networks
Franchise business
Reading from magazines, books etc

SCREENING, ANALYSIS AND SELECTION

OF THE OPPORTUNITIES
Business is like a game, only the best will win.
Entrepreneur needs to identify a business that
he enjoys and has the skills to produce.
It needs to list down ones strengths and
entrepreneurial attributes in chosen sector.

Prof. Rizwan U. Farooqui, Ph.D.

ASSESSING YOUR IDEAS

Is it a Good Idea?

Prof. Rizwan U. Farooqui, Ph.D.

Framework for assessing an idea

Is it doable? (Technical Feasibility)
Is the technology for product available?
If not, why has no one done so yet?
If yes, who are they and how does that affect your
prospects?
What kind of entry barriers for the future does
your technology provide?
How long would those entry barriers last?

Framework for assessing an idea

(Contd)
Is it doable? (Market feasibility)
What exactly are you selling?
Is it technology looking for market?
How do you define your niche?
How is the need being filled now?
Who/what is the competition?
What are the advantages/disadvantages of the
product?

Prof. Rizwan U. Farooqui, Ph.D.

Framework for assessing an idea

(Contd)
Is it doable? (Customer)
Who is your customer (a typical profile)?
Will the customer pay enough?
Can you charge enough?
What critical factors will lead you most quickly to
your customer base?

Framework for assessing an idea

(Contd)
Is it doable? (Market)
Is there a market?
How large is the market?
What is its structure?
How fast is it growing?
Where could future competition come from?

Prof. Rizwan U. Farooqui, Ph.D.

Framework for assessing an idea

(Contd)
Is it doable (Economic feasibility)?
Are there any road blocks from the government
(both local and foreign)?
Is the international situation likely to change?
What are your exit strategies?
Is your timing ideal?
Are you in the path of a paradigm shift?
Are you too far ahead of the times?

Framework for assessing an idea

(Contd)
Is it worth doing (Financial Stability)?
What is the initial outlay of funds required?
What would convince an investor to contribute
those funds?
If you personally owned those funds, would you
invest them in this idea?
How is the financing connected to the timing issue
(breakeven, cash consumption (burn) rate?

Prof. Rizwan U. Farooqui, Ph.D.

Framework for assessing an idea

(Contd)
Can I do it (What it is going to take?)
Long and often predictable work hours?
Setbacks and disappointments along the way?
An arduous and awkward learning process?
Negotiating tough contracts?
Dealing with rejections of various types?
Sustaining the best stake holders through bad
times such as cash crunches.

Framework for assessing an idea

(Contd)
Why you?
What special strengths do you bring to this
enterprise?
What are your relevant weaknesses and how will
you overcome or compensate for them?

Prof. Rizwan U. Farooqui, Ph.D.

Framework for assessing an idea

(Contd)
Do I want to do it?
Does it excite you?
Why do you want to do this really?
What are your exit strategies?

The idea behind the business

Practically speaking:
Turning a hobby into business?
Turning a passion into a business?

Prof. Rizwan U. Farooqui, Ph.D.

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Characteristics of a good idea

High margins
Goodness ratio
Relatively low capital
Financeable
Understandable
Helps to be fashionable
Growing market or growing segment; big
enough

The idea-to-venture formula

IDEA = ANYTHING + YOU
OPPORTUNITY = IDEA + ACTION
ACTION = FUNCTION (INTERACTION) on MONEY,
PRODUCT, PARTNERS
VIABLE VENTURE = OPPORTUNITY +
COMMITMENT

Prof. Rizwan U. Farooqui, Ph.D.

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Roadmap
List 3 ideas that you think are really good.
Think of an idea you believe in, pick the critical
hurdle to making it happen, and think

So what to do now?
You need not wait for the block buster idea.
You can begin with a simple problem for which
you see an implementable solution.
Even something that you simply believe would
be fun to attempt - and start.

Prof. Rizwan U. Farooqui, Ph.D.

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IDENTIFYING AND ASSESSING

OPPORTUNITIES

Prof. Rizwan U. Farooqui, Ph.D.

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Prof. Rizwan U. Farooqui, Ph.D.

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Prof. Rizwan U. Farooqui, Ph.D.

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Prof. Rizwan U. Farooqui, Ph.D.

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Prof. Rizwan U. Farooqui, Ph.D.

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I failed 3 times in college. I applied 30 times to get a

job but I have always been rejected. When KFC came
to China for the first time, we were 24 to apply and I
was the only one to be dismissed. I wanted to go into
the police and among 5 postulants, I was the only one
not to be accepted. I applied 10 times to return to
Harvard University USA and I was rejected."
Jack Ma, Alibaba Creator and 22nd World fortune
according to Forbes in 2015 with $ 29.8 billion.
Never give up because you failed once, know
that failure is sometimes out of the way to reach
your intended route.

Prof. Rizwan U. Farooqui, Ph.D.

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Prof. Rizwan U. Farooqui, Ph.D.

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OPPORTUNITY
AEESSMENT.

Prof. Rizwan U. Farooqui, Ph.D.

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