What are the five steps in completing an opportunity analysis?
Identifying which business ideas have real commercial potential is one of the
most difficult challenges that an entrepreneur will face. In this section, a
systematic approach to reducing the uncertainties is described. The five-step
model below will assist entrepreneurs to know a winning business area when they
see one.
Seize the opportunity
- Know what factors create opportunity.
- Calculate the opportunity costs.
- Access the risks and rewards.
Investigate the need through market research
- Ask preliminary questions.
- Prepare data collection.
- Execute a study to get answers.
- Analyze the data.
Develop the plan
- Ask the right questions.
- Prepare the business plan (see chapter 4).
Determine the resources needed
- Start personal contacts and networking.
- Perform financial requirements.
- Gather sources of technical skills
Manage the business
- Keep planning.
- Deliver a total solution.
- Cultivate advanced resources.