ENT600

ENT 600 Technology Entrepreneurship

OPPORTUNITY ANALYSIS & BUSINESS BLUEPRINT WORKBOOK

Malaysian Entrepreneurship Development Centre (MEDEC)

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Universiti Teknologi MARA

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OPPORTUNITY ANALYSIS & BUSINESS BLUEPRINT WORKBOOK

© 2007 Ismail Ab.Wahab, Wan Ismail Wan Mamat, Mohd Ali Bahari Abdul Kadir Malaysian Entrepreneurship Development Centre (MEDEC) Universiti Teknologi MARA

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PART 1

OPPORTUNITY ANALYSIS

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OPPORTUNITY ANALYSIS The Process Model

• • • • •

Market needs & wants Customers Value Added Market Size Potential Market Capacity Market Share Attainable

FINANCIAL ISSUES

• Time to BreakEven • Capital Requirement

MANAGEM ENT TEAM

• EntrepreneurialTe am • Technical Experience • Management experience

COMPETITI VE ADVANTA GE ISSUES

• Total Cost (fixed & variable) • Control Over Cost, Prices & Distribution • Proprietary Protection • Contacts & Networks •

PERSONAL CRITERIA OF ENTREPRE NEUR/TEA M

• • • •

STRATEGI

• Timing

Goals and Fit Stress Tolerance Desirability Risk/Reward Tolerance

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CONCLUSI ONS

PREPARATION OF BUSINESS BLUEPRINT

•

ENVIRO NMENT

GO/NO-GO BUSINESS OPPORTUNITY

BUSINESS AND PRODUCT CONCEPT

MARKET ISSUES

EVALUATION

ASSESSMENT OF EXTERNAL ENVIRONMENT

BUSINESS OPPORTUNITY PROFILE

FAVOURABLE /UNFAVOURABLE

CONCE PT

C DIFFEREN TIA-TION

• Technology • Pricing

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OPPORTUNITY ANALYSIS EXERCISE [Adapted and modified from Timmons and Spinelli (2003)]

The new venture creation process requires a thorough evaluation and investigation of an opportunity. The components of this exercise are used to channel your thought and data collection efforts toward creating the foundation for development of the complete business blueprint. Allow for a dynamic processing of each component and thereby the shaping of the opportunity and a plan to execute it. At the end of the exercise, you should have a clearer idea of the relative attractiveness of your opportunity. Every venture is unique. Operations, marketing, cash flow cycle, and so forth vary a good bit from company to company, from industry to industry, from region to region, and from country to country. As a result, you may find that not every issue is pertinent to your venture, and perhaps some questions are irrelevant. Here and there you may need to add to this exercise or further tailor them to your circumstances. This is a map of how to think about the tough, dull, legwork of good due diligence that should be done before launching into a venture. Completing this exercise will help you determine if your opportunity is attractive enough to develop a complete business blueprint. As you work through this exercise, you will find that much of the work of writing a blueprint comes from your answers in this exercise.

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Industry Name:

____________________________________________________________

Team Members: ____________________________________________________________ ____________________________________________________________ Program/Group: ____________________________________________________________

Step 1 - Opportunity and Product/Service Concept Briefly describe your business opportunity concept without mentioning the specific product(s) or service(s):

In one sentence, describe your product or service concept:

Step 2 - Business Opportunity Profile Answer the following questions on business opportunity profile by checking YES or NO for each question: Market Issues YES a. Is your business opportunity able to offer product/service that can satisfy any particular market segments and fulfill the needs and wants of that market segment?

b. Does your business opportunity have reachable and receptive customers? c. Does your product/service provide high value-added or value-created benefits to customers? d. Does your business opportunity have a high market size potential?

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NO

e. Is your business opportunity able to meet the demand that other existing suppliers cannot meet? f. Is your business opportunity able to gain at least 20% of market share within three years of operation?

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Financial Issues YES

NO

YES

NO

YES

NO

YES

NO

g. Can your business opportunity generate sales that

could cover the total costs within two years of operation (break-even)? h. Does your business opportunity require low-tomoderate capital?

i. Will you be able to get fund to finance your initial (start-up) capital? Management Team

j. Do you have a strong management and entrepreneurial team?

k. Does your management team have sufficient technical knowledge? l. Does your management team have sufficient managerial knowledge? Competitive Advantage Issues m. Does your business opportunity have the potential to be the lowest-cost producer with the lowest marketing and distribution costs? n. Does your business opportunity have potential for moderate-to-strong degree of control over process, costs and distribution channels? o. Does your business opportunity have potential to gain the proprietary protection (e.g. patent)?

p. Are you able to develop high quality and accessible contacts and networks? Personal Criteria of Entrepreneur/Team

q. Is there a good match between the requirements of your business opportunity and what you want out of it?

r. Are you able to tolerate stress and work under pressure in ensuring your business survival?

s.

Does your business opportunity fit well with your lifestyle?

t.

Are you able to take calculated risk?

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Strategic Differentiation YES

u. Does your business opportunity emerge at the right time?

v. Does your business opportunity produce a breakthrough, proprietary product?

w. Does your business opportunity offer product with a competitive price (at or near the industry leader’s price)? Score (yes answers) : >17 = favourable, 12-17 = moderate,