Description
With this detailed description with regards to opportunity assessment and the entrepreneurial process.
Opportunity Assessment
and the Entrepreneurial Process
By
Dr. Robert D. Hisrich
Garvin Professor of Global Entrepreneurship
Director, Walker Center for Global Entrepreneurship
Thunderbird School of Global Management
1 Global Place
(15249 North 59
th
Avenue)
Glendale AZ 85306-6000, USA
E-mail: [email protected]
Telephone: 602-978-7571
Fax: 602-439-1435
Opportunity Assessment Plan
A. An opportunity assessment plan is NOT a business
plan. Compared to a business plan, it should:
1. Be shorter
2. Focus on the opportunity, not the venture
3. Have no computer-based spreadsheet
4. Be the basis to make the decision on whether to act on an
opportunity or wait until another, better opportunity comes along
B. It should include:
1. A description of the product or service
a. What is the market need for the product or service?
b. What are the specific aspects of the product or service
(include any copyright, patent or trademark information)?
c. What competitive products are available filling this need?
d. What are the competitive companies in this product market
space? Describe their competitive behavior.
Opportunity Assessment Plan (cont)
e. What are the strengths and weaknesses of each of your
competitors?
f. What are the unique selling propositions of this product or
service?
g. What are the NAIC and SIC codes for this product or service?
h. What is the mission of the new venture?
i. What development work has been completed to date?
j. What patents might be available to fulfill this need?
2. An assessment of the opportunity:
a. What market need does it fill?
b. What is the size and past trends of this market?
c. What is the future growth and characteristics of this market?
d. What social condition underlines this market need?
Opportunity Assessment Plan (cont.)
e. What market research data can be marshaled to describe this
market need?
f. What does the international market look like?
g. What does international competition look like?
h. What are total industry sales over the past five years?
i. What is anticipated growth in this industry?
j. How many new firms have entered this industry in the past
three years?
k. What new products have been recently introduced in this
industry?
l. What is the profile of your customers?
m. Where is the money to be made in this activity? (The activity
that interests you most may be just off center from where the
money to be made from this opportunity will be located.)
Opportunity Assessment Plan (cont.)
3. Entrepreneurial self-assessment and the entrepreneurial
team:
a. Why does this opportunity excite you?
b. What are your reasons for going into business?
c. Why will this opportunity sustain you once the initial
excitement subsides?
d. How does it fit into your background and
experience?
e. What experience do you have and/or will you need
to successfully implement the business plan?
f. Why will you be successful in this venture?
Opportunity Assessment Plan (cont.)
4. What needs to be done to translate this opportunity into
a viable venture?
a. Examine each critical step.
b. Then think about the sequence of activity and put
these critical steps into some expected sequential
order.
c. How much time and how much money will each
step require?
d. If you cannot self-finance, where would you get
the needed capital?
Characteristics of an Entrepreneur
1. An entrepreneur is most commonly the _____ child
in the family.
a. oldest c. youngest
b. middle d. doesn’t matter
2. An entrepreneur is most commonly:
a. married c. widowed
b. single d. divorced
3. An entrepreneur is most typically a:
a. man
b. woman
c. either
Characteristics of an Entrepreneur (cont.)
4. An individual usually begins his or her first significant
entrepreneurial business enterprise at what age?
a. teens d. forties
b. twenties e. fifties
c. thirties
5. Usually, an individual’s entrepreneurship tendency first
appears evident in his or her:
a. teens d. forties
b. twenties e. fifties
c. thirties
6. An entrepreneur’s primary motivation for starting a
business is:
a. to make money d. to create job security
b. to be independent e. to be powerful
c. to be famous
Characteristics of an Entrepreneur (cont.)
7. To be successful in an entrepreneurial venture,
you need:
a. money d. a good idea
b. luck e. all of the above
c. hard work
8. Entrepreneurs and venture capitalists:
a. get along well c. are cordial friends
b. are the best friends d. are in conflict
9. Entrepreneurs are best as:
a. managers c. planners
b. venture capitalists d. doers
Characteristics of an Entrepreneur (cont.)
10. Entrepreneurs are:
a. high-risk takers (big gamblers) c. small-risk takers
b. moderate-risk takers (take few chances)
(realistic gamblers) d. doesn’t matter
11. Entrepreneurs:
a. are the life of the party c. will never to go parties
b. are bores at a cocktail party d. just fit into the crowd
at a party
12. Entrepreneurs tend to “fall in love” with:
a. new ideas d. new financial plans
b. new employees e. all of the above
c. new manufacturing ideas
Environmental Factors Affecting
Organizations in This Millennium
• Hypercompetition
• Rapidly changing technology
• Shorter product life cycles
a. Need new products
b. Need a sound new product launch system
• New market opportunities
• Different employee drives and motives
• Focus on obtaining sales and profits
• Sizeable amount of investment money available
Definitions
Entrepreneurship
• Entrepreneurship is the process of creating something
new with value by devoting the necessary time and
effort, assuming the accompanying financial, psychic,
and social risks, and receiving the resulting rewards of
monetary and personal satisfaction and independence.
• If you ain’t the lead dog, the scenery never changes.
Intrapreneurship
• Entrepreneurship in an existing organization.
• It is easier to beg forgiveness than to ask for permission.
Market-Oriented vs.
Controlled Economies
Market-
Oriented
Economy
Controlled-
Oriented
Economy
United
States
Cuba
Overall Market Conditions
• Large market
• Easy to form company
partnership or proprietorship
• Positive tax structure for
individual and company
• Positively covered by media
• Systematized code of business
law
• Government agencies strong
and no corruption—SEC
Oriented Toward
Innovation And
Innovative Activity
• Long-term thinking
• Going concern
concept
Investment
Community
• Banks
• Venture
capitalists
• Informal private
investors—angels
Entrepreneurship
Culture Strongest
In World
Principles for Successful
Launch of a New Venture
• Clearly defined market
• For durable and industrial products, payback for
customers less than 18 months
• Market growth rate between 30 and 50 percent
• Technology unique and protected
(if possible) by patent
• Product offers some product variants
• No strong competition
Principles for Successful
Launch of a New Venture (cont.)
• Company able to obtain good market position and
market share
• Gross margin should be between 30 and 50
percent
• Financing needed can be staged
• Appropriate initial investment return
• R.O.I. goal of 25 to 30 percent
• Strong management with skills in industry
Decisions for a Potential Entrepreneur
Change from Present Lifestyle
Work Environment
Disruption
Form New Enterprise
Desirable
1. Cultural
2. Subcultural
3. Family
4. Teacher
5. Peers
Possible
1. Government
2. Background
3. Role Models
Aspects of the Entrepreneurial Process
Identify and
Evaluate the
Opportunity
Develop
Business Plan
Resources
Required
Manage the
Enterprise
• Creation and
length of opportunity
• Real and perceived
value of opportunity
• Risk and returns of
opportunity
• Opportunity versus
personal skills and
goals
• Competitive
environment
• Title Page
• Table of Contents
• Executive Summary
1. Description of
Business
2. Description of
Industry
3. Marketing Plan
4. Financial Plan
5. Production Plan
6. Organization Plan
7. Operational Plan
8. Summary
• Appendices (Exhibits)
• Existing resources
of entrepreneur
• Resource gaps and
available supplies
• Access to needed
resources
• Management style
• Understand key
variables for success
• Identify problems
and potential
problems
• Implement control
systems
• Develop growth
strategy
doc_671252760.pdf
With this detailed description with regards to opportunity assessment and the entrepreneurial process.
Opportunity Assessment
and the Entrepreneurial Process
By
Dr. Robert D. Hisrich
Garvin Professor of Global Entrepreneurship
Director, Walker Center for Global Entrepreneurship
Thunderbird School of Global Management
1 Global Place
(15249 North 59
th
Avenue)
Glendale AZ 85306-6000, USA
E-mail: [email protected]
Telephone: 602-978-7571
Fax: 602-439-1435
Opportunity Assessment Plan
A. An opportunity assessment plan is NOT a business
plan. Compared to a business plan, it should:
1. Be shorter
2. Focus on the opportunity, not the venture
3. Have no computer-based spreadsheet
4. Be the basis to make the decision on whether to act on an
opportunity or wait until another, better opportunity comes along
B. It should include:
1. A description of the product or service
a. What is the market need for the product or service?
b. What are the specific aspects of the product or service
(include any copyright, patent or trademark information)?
c. What competitive products are available filling this need?
d. What are the competitive companies in this product market
space? Describe their competitive behavior.
Opportunity Assessment Plan (cont)
e. What are the strengths and weaknesses of each of your
competitors?
f. What are the unique selling propositions of this product or
service?
g. What are the NAIC and SIC codes for this product or service?
h. What is the mission of the new venture?
i. What development work has been completed to date?
j. What patents might be available to fulfill this need?
2. An assessment of the opportunity:
a. What market need does it fill?
b. What is the size and past trends of this market?
c. What is the future growth and characteristics of this market?
d. What social condition underlines this market need?
Opportunity Assessment Plan (cont.)
e. What market research data can be marshaled to describe this
market need?
f. What does the international market look like?
g. What does international competition look like?
h. What are total industry sales over the past five years?
i. What is anticipated growth in this industry?
j. How many new firms have entered this industry in the past
three years?
k. What new products have been recently introduced in this
industry?
l. What is the profile of your customers?
m. Where is the money to be made in this activity? (The activity
that interests you most may be just off center from where the
money to be made from this opportunity will be located.)
Opportunity Assessment Plan (cont.)
3. Entrepreneurial self-assessment and the entrepreneurial
team:
a. Why does this opportunity excite you?
b. What are your reasons for going into business?
c. Why will this opportunity sustain you once the initial
excitement subsides?
d. How does it fit into your background and
experience?
e. What experience do you have and/or will you need
to successfully implement the business plan?
f. Why will you be successful in this venture?
Opportunity Assessment Plan (cont.)
4. What needs to be done to translate this opportunity into
a viable venture?
a. Examine each critical step.
b. Then think about the sequence of activity and put
these critical steps into some expected sequential
order.
c. How much time and how much money will each
step require?
d. If you cannot self-finance, where would you get
the needed capital?
Characteristics of an Entrepreneur
1. An entrepreneur is most commonly the _____ child
in the family.
a. oldest c. youngest
b. middle d. doesn’t matter
2. An entrepreneur is most commonly:
a. married c. widowed
b. single d. divorced
3. An entrepreneur is most typically a:
a. man
b. woman
c. either
Characteristics of an Entrepreneur (cont.)
4. An individual usually begins his or her first significant
entrepreneurial business enterprise at what age?
a. teens d. forties
b. twenties e. fifties
c. thirties
5. Usually, an individual’s entrepreneurship tendency first
appears evident in his or her:
a. teens d. forties
b. twenties e. fifties
c. thirties
6. An entrepreneur’s primary motivation for starting a
business is:
a. to make money d. to create job security
b. to be independent e. to be powerful
c. to be famous
Characteristics of an Entrepreneur (cont.)
7. To be successful in an entrepreneurial venture,
you need:
a. money d. a good idea
b. luck e. all of the above
c. hard work
8. Entrepreneurs and venture capitalists:
a. get along well c. are cordial friends
b. are the best friends d. are in conflict
9. Entrepreneurs are best as:
a. managers c. planners
b. venture capitalists d. doers
Characteristics of an Entrepreneur (cont.)
10. Entrepreneurs are:
a. high-risk takers (big gamblers) c. small-risk takers
b. moderate-risk takers (take few chances)
(realistic gamblers) d. doesn’t matter
11. Entrepreneurs:
a. are the life of the party c. will never to go parties
b. are bores at a cocktail party d. just fit into the crowd
at a party
12. Entrepreneurs tend to “fall in love” with:
a. new ideas d. new financial plans
b. new employees e. all of the above
c. new manufacturing ideas
Environmental Factors Affecting
Organizations in This Millennium
• Hypercompetition
• Rapidly changing technology
• Shorter product life cycles
a. Need new products
b. Need a sound new product launch system
• New market opportunities
• Different employee drives and motives
• Focus on obtaining sales and profits
• Sizeable amount of investment money available
Definitions
Entrepreneurship
• Entrepreneurship is the process of creating something
new with value by devoting the necessary time and
effort, assuming the accompanying financial, psychic,
and social risks, and receiving the resulting rewards of
monetary and personal satisfaction and independence.
• If you ain’t the lead dog, the scenery never changes.
Intrapreneurship
• Entrepreneurship in an existing organization.
• It is easier to beg forgiveness than to ask for permission.
Market-Oriented vs.
Controlled Economies
Market-
Oriented
Economy
Controlled-
Oriented
Economy
United
States
Cuba
Overall Market Conditions
• Large market
• Easy to form company
partnership or proprietorship
• Positive tax structure for
individual and company
• Positively covered by media
• Systematized code of business
law
• Government agencies strong
and no corruption—SEC
Oriented Toward
Innovation And
Innovative Activity
• Long-term thinking
• Going concern
concept
Investment
Community
• Banks
• Venture
capitalists
• Informal private
investors—angels
Entrepreneurship
Culture Strongest
In World
Principles for Successful
Launch of a New Venture
• Clearly defined market
• For durable and industrial products, payback for
customers less than 18 months
• Market growth rate between 30 and 50 percent
• Technology unique and protected
(if possible) by patent
• Product offers some product variants
• No strong competition
Principles for Successful
Launch of a New Venture (cont.)
• Company able to obtain good market position and
market share
• Gross margin should be between 30 and 50
percent
• Financing needed can be staged
• Appropriate initial investment return
• R.O.I. goal of 25 to 30 percent
• Strong management with skills in industry
Decisions for a Potential Entrepreneur
Change from Present Lifestyle
Work Environment
Disruption
Form New Enterprise
Desirable
1. Cultural
2. Subcultural
3. Family
4. Teacher
5. Peers
Possible
1. Government
2. Background
3. Role Models
Aspects of the Entrepreneurial Process
Identify and
Evaluate the
Opportunity
Develop
Business Plan
Resources
Required
Manage the
Enterprise
• Creation and
length of opportunity
• Real and perceived
value of opportunity
• Risk and returns of
opportunity
• Opportunity versus
personal skills and
goals
• Competitive
environment
• Title Page
• Table of Contents
• Executive Summary
1. Description of
Business
2. Description of
Industry
3. Marketing Plan
4. Financial Plan
5. Production Plan
6. Organization Plan
7. Operational Plan
8. Summary
• Appendices (Exhibits)
• Existing resources
of entrepreneur
• Resource gaps and
available supplies
• Access to needed
resources
• Management style
• Understand key
variables for success
• Identify problems
and potential
problems
• Implement control
systems
• Develop growth
strategy
doc_671252760.pdf