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    Entrep 2

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    nivea gumayagay
    The document discusses factors to consider when searching for a business opportunity, including markets, individual interests, available capital, skills, suppliers, manpower, and technology. It also outlines processes like looking at other successful businesses as role models. The document then discusses product life cycles and various categories of business ventures such as service-based, trading, manufacturing, franchising, distributorships, and vending machine routes.

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    Entrep 2

    Uploaded by

    nivea gumayagay
    294 views27 pages
    The document discusses factors to consider when searching for a business opportunity, including markets, individual interests, available capital, skills, suppliers, manpower, and technology. It also outlines processes like looking at other successful businesses as role models. The document then discusses product life cycles and various categories of business ventures such as service-based, trading, manufacturing, franchising, distributorships, and vending machine routes.

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    Chapter 2

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    The document discusses factors to consider when searching for a business opportunity, including markets, individual interests, available capital, skills, suppliers, manpower, and technology. It also outlines processes like looking at other successful businesses as role models. The document then discusses product life cycles and various categories of business ventures such as service-based, trading, manufacturing, franchising, distributorships, and vending machine routes.

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    Download as PPTX, PDF, TXT or read online from Scribd
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    294 views27 pages

    Entrep 2

    Uploaded by

    nivea gumayagay
    The document discusses factors to consider when searching for a business opportunity, including markets, individual interests, available capital, skills, suppliers, manpower, and technology. It also outlines processes like looking at other successful businesses as role models. The document then discusses product life cycles and various categories of business ventures such as service-based, trading, manufacturing, franchising, distributorships, and vending machine routes.

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    of 27

    WESLEYAN UNIVERSITY-PHILIPPINES

    COLLEGE OF BUSINESS AND ACCOUNTANCY

    ENTREPRENEURSHIP

    PREPARED FOR 4BSAT1


    SEARCH FOR BUSINESS
    OPPORTUNITY,
    IDEATION, INNOVATION,
    AND CREATIVITY
    THE SEARCH FOR BUSINESS OPPORTUNITY

    In discovering business opportunities, the following factors on


    resources have to be evaluated:

    ▰ Markets
    ▻ This refers to the number of prospective buyers, competitors, the
    price, and the quality of goods and services that have to be
    analysed. Business opportunities exist in areas where consumer
    satisfaction is weak or incomplete.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ Individual Interests
    ▻ Business interest of individuals should match business
    opportunities.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ Capital
    ▻ This serves as the fuel that keeps the business operating. The
    availability of funds should fit the type of business to organize.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ Skills
    ▻ The entrepreneur should have the proper skills in the business he
    is going to undertake.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ Supplier of inputs
    ▻ It is important that there are steady suppliers of raw material and
    other inputs to the business.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ Manpower
    ▻ The success of any business also depends on the efficiency of its
    employee.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ Technology
    ▻ Entrepreneurs should be aware of the presence of technology to
    improve their products or services, or introduce new innovations
    in the market.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    Other opportunity-seeking processes that can guide a prospective


    entrepreneur as to what kind of business to establish are as follows:

    1. Look at other successful businesses/entrepreneurs


    -Looking up at other entrepreneurs as a role model that could be an
    inspiration, by doing what they have done or do it even better.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    2. Home-Based Business Option


    -These must not be taken for granted, for there are some big
    businesses that started as a small business at home.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    3. Linkage of Resources
    -The entrepreneur can produce his own input instead of buying
    them.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    According to Fajardo, products have their own life cycle. It is


    composed of four stages: Introduction, Growth, Maturity, and Decline.
    Some products have long product life cycle, while others have short.
    PRODUCT LIFE CYCLE (PLC)

    Here are the descriptions of various stages of product life cycle:

    ▰ Introduction
    ▻ This is the stage in which the product has been introduced first
    time in the market. If consumer awareness and acceptance of
    product are low, launch through the use of marketing activities,
    which make the profit low due to cost of development and
    marketing activities.

    CHAPTER 2
    PRODUCT LIFE CYCLE (PLC)

    ▰ Growth
    ▻ In this growth stage, the product is present already in the market
    and consumers of the product are habitual of the product and
    also there is quick growth in the product sales as more new and
    new customers are using and trying and are becoming aware of
    the product.
    ▻ To meet the growing demand, product distribution is expanded.
    Sales rise rapidly as product becomes popular.

    CHAPTER 2
    PRODUCT LIFE CYCLE (PLC)

    ▰ Maturity

    ▻ In maturity stage, the cost of the product has been decreased


    because of the increased volume of the product and the product
    started to experience the curve effects. Also, increase in
    competitors entering the market.
    ▻ Sales are still rising, but rate of increase has declined. At latter
    part, a sale reaches its peak, while profits begins to fall.

    CHAPTER 2
    PRODUCT LIFE CYCLE (PLC)

    ▰ Decline/Saturation Stage
    ▻ In this stage, there is a sharp fall in sales volume, while profit
    curve becomes almost flat or horizontal. There is also decline in
    the number of competitors. The only survivors are those who
    specialize in marketing the product. Once product is no longer
    profitable, it is eliminated from the market.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    Venturing into a business projects demands a timely and clear


    decision as to which area or business concern to deal with. In the
    selection process, one has to begin with choosing or focusing on a
    particular business by category or sector.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ The service-based business


    ▻ Common examples of service-based businesses are consultancy,
    barber shops, beauty parlors, care giving, designing works,
    rendering professional services, such as engineers, dentistry,
    medical doctor, and others where there is no need to
    manufacture something

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ Trading or product-based business


    ▻ This is a buy-and-sell transaction that can happen in your
    storehouse, showroom, or any other structureless environment.
    Selling involves a lot of customer contact and requires a great
    deal of persistence on the entrepreneurs’ part.
    ▻ An example of this is putting up a grocery store, bakery products,
    or general construction materials.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ Manufacturing business
    ▻ This is a manufacturing or production-based business by creating
    a product. Manufacturing can be as simple as hand-painted T-
    shirts or ceramic vases and now, the most popular is candle
    making, which can done in your home.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ Licensed business opportunities


    ▻ If you find some difficulties in launching a product or service, it is
    a good idea to look for licensed business opportunities.
    Franchising is a business format somehow very similar to
    licensed business operations.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ Distributorship
    ▻ This is where an independent entrepreneur, company, or
    individual enters into an agreement or contract to offer, sell, or
    distribute a particular product, but is not entitled to use the
    manufacturer’s trade name as part of its own trade name.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ Rack Jobber
    ▻ This involves an agent or buyer entering an agreement with a
    parent company to market its goods to various stores by means
    of strategically located store racks.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ Wholesalers
    ▻ These sell the product of manufacturers or producers to retailers
    and other distributors who have direct dealings with the end users
    or customers.

    CHAPTER 2
    THE SEARCH FOR BUSINESS OPPORTUNITY

    ▰ Vending machines routes


    ▻ These are placed in various places or locations. The entrepreneur
    needs to have substantial capital outlay as he had to pay for the
    vending machine, including the stocks to be vended.

    CHAPTER 2
    -END-

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