Opportunity analysis, developing a business plan
Compared to a business plan, the analysis period should be shorter, focus on the opportunity, not the entire venture; and provide the basis to make the decision on whether to act on the opportunity.
Opportunity analysis includes the following: a description of the product or service; an assessment of the opportunity; an assessment of the entrepreneur and the team; specifications of all the activities and resources needed to translate the opportunity into a viable business venture; and the source of capital to finance the initial venture as well as its growth. The most difficult and most critical aspect of opportunity analysis is the assessment of the opportunity. This requires answering the following questions:
* What market need does it fill?
* What personal observations have you experienced or recorded with regard to that market need?
* What social conditions underlies this market need?
* What market research data can be arranged to describe this market need?
* What patents might be available to fulfill this need?
* What competition exists in this market? How would you describe the behavior of this competition?
* What does the international market look like?
* What does the international competition look like?
* Where is the money to be made in this activity?
Resources required,
The resources needed for the opportunity must also be assessed. This process starts with an evaluation of the entrepreneur's present resources. Then, any resources that are critical must be distinguished from those that are just helpful. Care must be taken not to underestimate the amount and variety of resources needed. The negative risks associated with insufficient resources should also be assessed.
Acquiring the needed resources in a timely manner, while giving up as little control as possible, is the next and quite difficult step in the entrepreneurial process. An entrepreneur should strive to maintain as large an ownership position as possible, particularly in the start-up financing stage. As the business develops, more funds will probably be needed to finance the growth of the venture, requiring more ownership to be relinquished. Every entrepreneur should reluctantly give up their ownership position in the venture only after every other alternative has been explored. Not only must alternative suppliers of these resources be identified but also their needs and desires. By understanding resource supplier needs, the entrepreneur can make a deal that enables the resources to be acquired at the lowest possible cost and loss of control of his/her business.
Managing the enterprise
After the resources are acquired, the entrepreneur has to put them into action through implementation of the business plan. He or she also has to deal with the current problems of the growing enterprise. This involves implementing a management style of structure. Problem areas should be identified and carefully monitored. For some entrepreneurs it is easier to create a new venture than to manage the venture they created. That is the difference between entrepreneurial and managerial decision making.
Task 3:
What is entrepreneurship?
Task 4:
Дайте определение понятиям «менеджмент», «менеджер» на русском языке, вспомните все, что вы знаете о менеджменте. Как вы представляете себе различие между предпринимателем и менеджером? Сопоставьте свое мнение с содержанием текстов «Тhe Difference between an Entrepreneur and a Manager», «What is a Manager?» Выделите в данных и в последующих текстах экономические термины и запишите в словарик.