Business Opportunity identification is an important part of the entrepreneur’s journey.
It is very important to know how entrepreneurs identify and decide a new business opportunity with the best chance to succeed.
The most important part of all business attempts common to most successful startups is answering an unmet need in the market. Customers are always interested in products that add value. They buy products needed only to satisfy some problems.
Are an entrepreneur or intending to become one?
I will like you to join me explore this concept because I know it must certainly benefit you.
Hope you’re ready… ?? Okay…!!!
First of all, I will like to show you the the three major types of opportunity and hey are:
- Recognized opportunity
In this type of opportunity, proper reasoning is used to to get new ideas. This consists of accidental recognition of an opportunity for a business solution to a challenge and realization of idea or ideas from others like colleagues and associates. This type of opportunity has to do with the exploitation of the existing markets where both sources of supply and demand that exist are recognized and brought together.
- Discovered opportunity
In this type of opportunity, when only the demand exists, but supply does not, and vice versa, then the non-existent side has to be discovered. This type of opportunity has to do with the exploration of existing and latent markets. For discovered opportunity to occur, a purposeful search is necessary. An example of could be when a country introduces a new course in their university curriculum and many publishers have printed textbooks on this course, a discovered opportunity might be the sales/distribution of this books to universities and students.
- Created/enacted opportunity
This type of opportunity is based on the principle of enactment where the entrepreneur creates new means and new ends by using effectual reasoning. In this type of opportunity, the supply and demand will not apparently exist; one or both of them have to be created. This demands that several economic inventions like marketing, financing and others have to be created for the opportunity to exist.
Opportunity identification is the collection of three main factors, which are; the entrepreneur’s background, the business influence and the general environment.
The five stages for opportunity identification are as follows:
Preparation stage is that knowledge and experience exercise just before the opportunity discovery process. These knowledge and experience are not often deliberately acquired. However, preparation itself is usually a deliberate attempt to widen capability in an area and become sensitive to concerns in a field of interest. In an organized situation, the background of the business, the products or services or the technological knowledge must have majorly informed the main ideas of the successful venture. One cannot however, rule out the role of new ideas and expertise originating from individuals in the organization that will eventually result in a new business.
Incubation stage is the part of the opportunity identification process that involves the consideration of a concept or a specific problem ordinarily not subjected to conscious of formal analysis by a businessman or his team. It is usually not consciously done and therefore more often than not, an instinctive and unempirical approach for the consideration of several potential alternatives.
Insight stage occurs at the moment a fundamental solution suddenly becomes recognized unexpectedly. It is a particular moment that keeps occurring persistently right through the process of opportunity identification. Insights have been found to be extensive channels to the discovery of startup businesses and sometimes reveal additional knowledge for the development of a current process of discovery. In respect of a business venture, insight predictably encompasses the abrupt recognition of an opportunity in business, the answer to an adequately pondered crisis and the possession kof a concept from social networks and associates.
Evaluation stage is about investigating if the recognized and developed ideas are feasible, if the businessman has the required abilities to realize the ideas and if the idea is sufficiently innovative for prospects. It sometime involves full feasibility analysis of the ideas through all forms of research instruments and criticisms from relevant business acquaintances. It is fundamental to also investigate the prospects and viability of the new insight ideas as the spirit of the entrepreneurship is to make satisfactory and sensible profits.
Elaboration is the stage that exposes the opportunity/ideas too external analysis with the tedious and time-consuming options selection, choice decision and organization of resources. It is customarily in search of all legalities that could build confidence and guarantee the practicability of the business. Elaboration also reduces uncertainties by providing the detailed planning activities after the evaluation viability confirmation. This will eventually reveal the concept areas that still need further analysis and attention.
Actually this is where we will draw the curtain. I want to believe that this is helpful .
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Written by: Chukwuma Gordian. A Nigerian SEO expert and Digital Marketing strategist. He is the founder of Visible Online Marketing Intelligence. He has helped businesses across Africa to achieve quality online visibility. You can contact him on +2347034708233, firstname.lastname@example.org.