Ent New Vent Creation Chapt 2

Front 1

Three Ways to Identify an Opportunity

Back 1

Observing Trends

Solving a Problem

Finding Gaps in the Marketplace

Front 2

Observing Trends

Back 2

Trends create opportunities for entrepreneurs to pursue.
The most important trends are:
Economic forces.
Social forces.
Technological advances.
Political action and regulatory change.
It’s important to be aware of changes in these areas.

Front 3

Trend 1: Economic Forces

Back 3

Economic trends help determine areas that are ripe for new startups and areas that startups should avoid.

Front 4

Example of Economic Trend Creating a Favorable Opportunity

Back 4

A weak economy favors
startups that help consumers
save money.
An example is GasBuddy.com,
a company started to help
consumers save money on gas.

Front 5

Trend 2: Social Forces

Back 5

Social trends alter how people and businesses behave and set their priorities. These trends provide opportunities for new businesses to accommodate the changes.

Front 6

Examples of Social Trends

Back 6

Retirement of baby boomers.
The increasing diversity of
the workplace.
Increasing interest in health,
fitness, and wellness.
Emphasis on alternative forms
of energy.
New forms of music and other
types of entertainment.

Front 7

Trend 3: Technological (Advances)

Back 7

Advances in technology frequently create business opportunities.

Front 8

Examples of Entire Industries that Have Been Created as the Results of Technological Advances

Back 8

Computer industry
Internet
Biotechnology
Digital photography

Front 9

Trend 3: Technological (Advances after first advance)

Back 9

Once a technology is created, products often emerge to advance it.

Front 10

Example:
Trend 3: Technological (Advances after first advance)

Back 10

An example is H20Audio, a company started by four former San Diego State University students, that makes waterproof housings for the Apple iPod.

Front 11

Trend 4: Political Action and Regulatory Changes 1 of 2

Back 11

Political action and regulatory changes also provide the basis for opportunities.

Front 12

Political Action and Regulatory Changes General Example

Back 12

Laws to protect the environment have created opportunities for entrepreneurs to start firms that help other firms comply with environmental laws and regulations.

Front 13

Trend 4: Political Action and Regulatory Changes 2 of 2

Back 13

Company created to help other companies comply with a specific law.

Front 14

Political Action and Regulatory Changes Specific Example

Back 14

The No Child Left Behind Act of 2002 requires states to develop criterion-based assessments in basic skills to be periodically given to students in certain grades. Kim and Jay Kleeman, two high school teachers, started Shakespeare Squared, a company that helps high schools comply with the act.

Front 15

Second Approach: Solving a Problem

Back 15

Sometimes identifying opportunities simply involves noticing a problem and finding a way to solve it.
These problems can be pinpointed through observing trends and through more simple means, such as intuition, serendipity, or change.
A problem facing the U.S. and
other countries is finding
alternatives to fossil fuels.
A large number of
entrepreneurial firms, like
this wind farm, are being
launched to solve this problem.

Front 16

Third Approach: Finding Gaps in the Marketplace

Back 16

A third approach to identifying opportunities is to find a gap in the marketplace
A gap in the marketplace is often created when a product or service is needed by a specific group of people but doesn’t represent a large enough market to be of interest to mainstream retailers or manufacturers.

Product gaps in the marketplace represent potentially viable business opportunities.

Front 17

Third Approach: Finding Gaps in the Marketplace (Example)

Back 17

In 2000 Tish Cirovolv realized there were no guitars on the market made specifically for women. To fill this gap, she started Daisy Rock Guitars, a company that makes guitars just for women.

Front 18

Personal Characteristics of the Entrepreneur (Characteristics that tend to make some people better at recognizing opportunities than others)

Back 18

Prior Experience

Cognitive Factors: 6th sense

Social Networks: connections, ideas for business from others

Creativity

Front 19

Techniques For Generating Ideas

Back 19

Brainstorming: put all ideas together, scribe them narrow down, focus on creativity mostly

Focus Groups

Library and
Internet Research