EVALUATION OF OPPORTUNITIES

Chapter 3
 Learning Objectives:
After studying this chapter you should be able to
describe:
1. The Business Idea and How to Develop New
business Idea.
2. The definition of technology and how to create
a product (product life cycle).
3. The Important of Leadership, innovation and
consultancy skills in business.
4. The Government and Private Agencies Related
with the Innovation Activities.
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 Identifying, Analyzing, Evaluating and Choosing
Business Opportunity.
There are four (4) major steps to be performed by an
entrepreneur before starting the business.
Step 1:
Identifying
Step 3: Evaluate
Customer Needs
Business
and
Opportunities
Requirements

Step 4: Selecting
Step 2: Analyzing Business
Environmental Opportunities
Assessment, and Develop
Personal and Business Plan
Social Values

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 Step 1: Identifying Customer Needs and
Requirements
Each business opportunity starting at the need and
requirements of customers for a product.

Basic needs is something that must be acquired, such as food,

clothing, shelter, education and security.

However, people also have a requirement that a desire or a

personal desire for something better than basic.

The requirement of a person can be influenced by culture,

education level, level of ability and personality.

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 Step 2: Analyzing Environmental Assessment,
Personal and Social Values
In search of business opportunities there are three important
things that need to be considered. The environment, self-
assessment and the community.
2.1Environment Scanning

-Population structure, income and tastes

eg. Muslim, Buddhist
-Studies on the import & export data
eg. Export of meat
-Studies on local resources
-Industrial chain
-Government and private development plans
Eg. AFTA, Seri Iskandar Corriddor
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2.2 Self Assessment

-Experience eg. Working in related field.

-Knowledge and skills. Eg. Finance, accounting,
marketing
-Financial position.
-Interest.
-Networking.
2.3 Social Values

- Culture and norms.

- Local Ethics.
- Local perception.
- Taboo. Eg. Religion, hate, sexual related
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 Step 3: Evaluate Business Opportunities
The process of evaluating business opportunities to help
entrepreneurs choose one of the best business opportunities.
With all this attention, commitment and efforts of entrepreneurs
to focus on only a business opportunity only.
Here are some processes that can be taken by entrepreneurs in
evaluating the best business opportunities.

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 Legal. Eg. Business registration, local
rules,
Monopoly power and the level of
competition
Capital Requirement
Risk
 Step 4: Selecting Business Opportunities and
Develop Business Plan
After all the processes and measures undertaken, it is
up to entrepreneurs to choose the best business
opportunities.
Further action after choosing the best business
opportunity is to provide a (Business Plan)
Administration and Operation Plan, Marketing Plan and
Financial Plan.

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 SPECIAL THING TO REMEMBER

Nothing is particular hard if you divide it into

small job.

When written in Chinese, the word crisis

composed of two characters one represents
danger and the other represent opportunity.
Thank you and see you next week