BUSINESS OPPORTUNITY IDENTIFICATIONAND
SELECTION
2
O P P O R T U N I T Y
I D E N T I F I C A T I O N
ENTREPRENUER’S
BACKGROUND AND
INVESTMENT
EDUCATIONAL
QUALIFICATIONS
AND EXPERIENCE
LOCATION
AVAILABILITY
OF RAW
MATERIALS
MARKET
POTENTIAL
POLLUTION
CONTROL LAWS
AVAILABILITY
OF SKILLED
MANPOWER
GOVERNMENT
POLICY
INFRASTRUCTURAL
REQUIREMENTS
TECHNOLOGY
AND EQUIPMENT
Steps in Arriving atBusiness Opportunity
Generating Ideas
Screening Process
Formulating the Concept of the Business
Generating Business Ideas
Generation of Business Ideas
Focus on ….
Is there any natural resource which you can commercialize (Natural Resources)?
Are there any existing enterprises you can supply goods or services to (Existing/Expected Enterprises) ?
Are there any existing enterprises doing so well that it would be worthwhile to do thesame (competition) ?
Are there any products/ services for which the market demand will continue toexpand(market driven/ Market-Extension)?
Does the present work suggest any business opportunity (Creative Effort)?
Natural Resources and Business Opportunities
Forest
oMajor forest produces like Timber, Wood, Bamboo, Rubber etc.
oMinor forest produces like Honey, Medicinal and Aromatic plants (vis-à-visRamdev), Natural Fibers, Minor Oil Seeds, Tree leaves and bark
Generation of Business Enterprise Idea contd.
Forest
oBamboo works
Generation of Business Enterprise Idea contd.
Forest
oBamboo works
Generation of Business Enterprise Idea contd.
Forest
oBamboo works
Generation of Business Enterprise Idea contd.
Natural resources and Business Opportunities contd.
Agriculture
Agriculture produces like paddy, wheat, oil seeds, sugarcane, cotton, pulses etc. offershuge opportunity in primary and secondary processing, storage, transportation, etc.
New Opportunities: Mushrooms,
Inputs like certified seeds, fertilizer, pesticides, irrigation facilities, agriculturalimplements, consultancy and services like soil and water testing, agronomy, hydrology,etc)
o New Opportunity : Dip Irrigation, Herbal/organic pesticides, manures
Generation of Business Enterprise Idea contd.
Horticulture
o Inputs like nutrients, insecticides, nursery plants, irrigation facility, tools andequipments.
o Outputs like fruits, vegetables, wastes and by- products
o Processing of fruits, vegetables and by-products
Generation of Business Enterprise Idea contd.
Natural resources and Business Opportunities contd.
Natural resources and Business Opportunities contd.
Agro-waste
oprocessing and converting Agro waste such as paddy husk, straw, wheat straw,sugarcane bagasse, cotton stalk, groundnut husk into commercial and industrialproducts
o New Opportunity: organic fertilizer for gardening
Generation of Business Enterprise Idea contd.
Natural resources and Business Opportunities contd.
Paddy husk
Generation of Business Enterprise Idea contd.
Paddy strawGeneration of Business Enterprise Idea contd.
Agro-waste: SUGAR PLANTATION – OPPORTUNITIES AND BY-PRODUCTS
Sugarcane Plant
Sugarcane: Not Available For Processing
Prime Sugarcane: Available For Processing
Thrust, Leaf &
Inflorescence
Consumer
Market
Gur Making Sugar Making Khandsari Making
Molasses Bagasse Press Mud
Alcohol & Chemical Fuel, Paper, Cattle Feed, particle board
Wax, Polish, Manure
Note: Molasses: Thick dark syrup produced by boiling down juice from sugar cane; especially during sugar refining Bagasse :The dry dusty pulp that remains after juice is extracted from sugar cane or similar plants.
Generation of Business Enterprise Idea contd.
Natural resources and Business Opportunities Contd.
Marine or Aqua
oProducts such as salt, gypsum, marine chemicals, sea weeds, fish and marine animalsoffer vast industrial opportunities.
oTourism related business opportunities such as water sports, diving, surfing, boating,etc. are commercially exploited.
Generation of Business Enterprise Idea contd.
Natural resources and Business Opportunities Contd.
Desert and arid land
oTourism related business opportunities such as festivals, lodging, foods etc
e.g. Kutch festivals
Generation of Business Enterprise Idea contd.
Natural resources and Business Opportunities Contd.
Mineral (clay, iron and steel)
ominerals resources such as coal, iron ore, bauxite, mica, lime stone, marble andgranite stone, soap, stone, graphite, mineral oil and gas etc.
oMining, processing, transportation and other logistics
oMining equipments, tools, testing laboratory, safety equipments and gadgets,prospecting services
Generation of Business Enterprise Idea contd.
Natural resources and Business Opportunities contd.
Live stocks
oLive stocks includes poultry, cow, buffalo, goat, sheep etc.
oPoultry Farms, Dairy Farms, raising other animals, slaughter house, animal feeds etc.
oBy-products such as bones, leather, horns and huffs, animal hair, blood etc. also are of commercial importance.
Generation of Business Enterprise Idea contd.
Live-stocks
Cattle Sheep/Goats Poultry Piggery Horse Farm Fishiculture Emu/Ostrich/
Rabbit/ turkey
BUSINESS OPPORTUNITIES
→ Cow/Buffalo/Feed
→ Veterinary drugs/medicine
→ Milk & Milk Products e.g. Cottage cheese etc.
→ Hides & Skins
→ Horns & Huffs
→ DCP/Bone Meat/Fish & Poultry Feed
→ Ossein/ Gelatine
→ Feed
→ Broilers, Layers
→ Egg Powder
→ Semen
Generation of Business Enterprise Idea contd. Natural resources and Business Opportunities contd.
Natural resources and Business Opportunities contd.
Wind/ Sun
o Renewable sources of energy are very important for green environment.
o Wind power generation is possible where sufficient wind velocity is available to run windmill.
o Solar energy offers opportunities to generate electricity and run gadgets such as PV Cellsbased water pumps, lighting, battery chargers, roof top power generation, lantern, solarhot water systems and dryers etc.
o Opportunities in construction, erection, installation, repairs and maintenance of wind mills.
Generation of Business Enterprise Idea contd.
Existing/ Expected Enterprises and Business Opportunities
o Similar Business
o Raw Materials
o Parts and Components
o Further Processing
o Packing Material
o By-product use
o Problem-solving products
o Service Needs
o Growth products and services
o Scarcity of products/ Services
o Other markets
o Export
Generation of Business Enterprise Idea contd.
BUSINESS OPPORTUNITIES BASED ON EXISTING INDUSTRIES
Inputs Required Services RequiredOutput based B.O.
(Downstream
products)
Waste-By-Products
Based B.O.
- Raw materials
- Hardware/software
- Repairs &
Maintenance
- Training
of Manpower
- Transport
- Laundry
- Canteen
- Schools/
- Entertainment
- Event Management
- House keeping
e.g. Readymade
Garments from
cloth produced
By Textile mill
e.g. Paper Mill to
paper conversion
products such as
notes books,
paper bags,
corrugated
boxes, etc.
- Iron turning from
lathe machines
- Fly-ash from coal
Based PowerPlant
- Catalyst waste
from
Petrochemicals/
Fertilizer plant
- Wood dust from
Saw Mills
Existing/ Expected Enterprises and Business Opportunities contd. Generation of Business Enterprise Idea contd.
Industrial development-based opportunities : A Checklist
Is there any established industry in your area? What is the performance rate of thisindustry?
Can you pursue any business ventures in your area, which though uncommon, are yet verysuccessful?
What kind of raw materials, packing materials, components and services the local industriesrequire? Are any of these procured from outside your area?
Do any of these pose problems in terms of availability quality, delivery schedule, etc.?
Existing/ Expected Enterprises and Business Opportunities contd. Generation of Business Enterprise Idea contd.
Industrial development-based opportunities : A Checklist
Do the local industries generate any waste or by-products? What are these used for?Who buys these?
Are there non-local suppliers to a given industry with whom the industry is quitehappy?
Are there any new and important industries being established in your area? What arethey likely to buy or manufacture?
• Are there any infrastructure projects coming up? What are they likely to require?
Existing/ Expected Enterprises and Business Opportunities contd. Generation of Business Enterprise Idea contd.
Waste Management
Existing/ Expected Enterprises and Business Opportunities contdGeneration of Business Enterprise Idea contd.
METAL WORKER IN JAPAN LOADS DISPOSED CELLULAR PHONES ONTO A CONVEYER
BELT WHICH SENDS THEM TO CRUSH AND RECYCLE.
WORKSHOP SALVAGED 50 KG GOLD AND 1000 KG SILVER FROM 3.5 MILLION DISPOSED
CELLULAR PHONES AND ALSO RECOVERED 20 M.T. OF BRONZE.
Waste Management (Contd..)
Existing/ Expected Enterprises and Business Opportunities contd Generation of Business Enterprise Idea contd.
DEMAND/MARKET DRIVEN BUSINESS OPPORTUNITIES
TRADE-FLOWS
Industrial / services / consumer products e.g.
Kerala: coconut , rubber products
Gujarat: Diamond, jewelry, cloths
IMPORT SUBSTITUTION
Import data, toys, consumer goods, mosquito racket / glass beads
GROWTH PRODUCTS
Healthcare Products & Services, Processed Foods, Entertainment Products And Innovative Products
Like; Courier Services, Plastic WaterTank, Sachets, Water Ro Plants
Generation of Business Enterprise Idea contd.
29
PRODUCT POSITIONING/DIFFERENTIATION
Product features / applications / price & quality e.g. groundnut – roasted, coateddetergent powder, coconut hair-oil loose to bottle, napkins, vicks vaporub, mosquito spray
EXPORTS
‘Others’ Ready-made Garments, Diamond, Leather Products and so on
Basis For Exports: Pollution, Not-grown / Manufactured, Low Labour Cost, Overseas Market Details (Www.Cbi.Nl, Trade Fairs)
COMPETITITIVE ADVANTAGE, NOT JUST POTENTIAL
Cost of production, freight, subsidies, efficiency, glass beads, ceramic products, paper & plastic products
DEMAND/MARKET DRIVEN OPPORTUNITIES contd. Generation of Business Enterprise Idea contd.
SERVICE SECTOR
Low investment
Low risk
Highly localized
High employment generation
IT services such as BPO engineering services and R&D, and software products
Telecom sector
Tourism
Medical tourism, rural tourism are some new streams fuelling the growth of tourism. Hotels and restaurants sector
CREATIVE EFFORTS
Development Of Problem-solving Products/Services e.g. Aqua Guard, Domestic
Flour Mill
Exploitation of New Technology Or Material To Meet A Widely Felt Need e.g. Vending
Machines, Footwear, Soya Milk
Creating a Demand for a spiritual Product
Technical Extension of an established product concept e.g. Mosquito mat, courier
service, mobile
Generation of Business Enterprise Idea contd.
32
CREATIVE EFFORTS contd.
Creating a demand implicit in emerging life style e.g. farm house, time-sharing,
recreation clubs,
Introducing products/services alien to a region/ country e.g credit cards, pre-
fabricated houses, diapers, malls
Value-addition through technical or managerial innovation e.g. pan masala sachet
packing, instant tea/coffee,
Group entrepreneurship e.g. LIJJAT PAPAD, AMUL
VISION- Tata Steel, Nirma,
Generation of Business Enterprise Idea contd.
33
EXTENSION/MODIFICATION OF PRESENT WORK-CONTENT
Skill-based self-employment Carpenter, electrician etc. Marketing to production Traders, salesmen Managing or working in a similar enterprise Supervisor, chemist, engineer
Generation of Business Enterprise Idea contd.
Screening Process
Screening Process
Personal-Level
Screening
Firm-Level
Screening
Personal Preference (committed)
Educational & Training Background
Work experience (degree of expertise & knowledge)
Business Network & Contacts (buyers, suppliers or creditors)
Family Support
Personal Values (non-monetary)
Personal-Level Screening
Firm-Level Screening
Market
Technology
Availability of Skills
Availability of Raw Materials
Financial/Capital Requirement
Profitability
Government Support
Formulating the Concept of the Business
Formulating the Concept of the Business
1. Resource Analysis :The Resource Analysis where strengths and
weaknesses are identified, indicates what the firm is capable of doing at
the start of the business.
Resources Strengths Weaknesso Money
o Materials
o Machines
o Methods
o Manpower
o Management
o Moment (time)
Formulating the Concept of the Business contd.
2. Environmental Analysis: The Environmental Analysis gives an indication whether the business can survive or not.
Environment Strengths Weakness
o Socio-cultural
o Technological & technical
o Economic
o Natural
o Political
o Peace & order
o Population trends
o Government program e.g. MSMEs (Finance, Technical, and Marketing)
o Global environment
Business Opportunities need to be
filtered through a Five-layer Sieve
oResearching your industry – how can you learn more about your chosen industry and
about the resources that are available to help you?
oMarket assessment – is there a market for your product or service? If so, how much income
can you expect to derive from it?
Formulating the Concept of the Business contd.
Business Opportunities need to be filtered through a Five-layer Sieve contd.
oProfitability assessment – how much will starting a new business cost you? Can you afford
a lengthy “red link” period following start-up, as well as periodic gaps in cash flow? Can
you afford to fail?
oFinancing assessment – will you be able to obtain the necessary financing for your
business? If so, from where?
oLegal assessment – what potential legal liabilities are you exposing yourself to by starting
a new business? Are the costs of protecting yourself worth the trouble?
Formulating the Concept of the Business contd.
Before Starting your Own Business
Does the idea fire your motivation and is it adequate enough to keep you going for next one to two years?
Is it a viable business proposition in your area?
Does it match the needs of your customers - local or otherwise?
Check it out with basic market research
Test it out in the market
Consult with experts
Look out for competition in the field
IS IT A SUNRISE INDUSTRY?
Evaluate your business opportunity
Project conceptualization
Formulating the Concept of the Business contd.
Acknowledgement:
This penetration was made on a FDP (Jan. 2014) at EDI, Ahemdabad. Certain editing (addition and deletion) have been done on the same.