BUSINESS OPPORTUNITY IDENTIFICATION AND SELECTION · 7/2/2016 · o Export Generation of Business Enterprise Idea contd. ... Group entrepreneurship e.g. LIJJAT PAPAD, AMUL ... o

BUSINESS OPPORTUNITY IDENTIFICATIONAND

SELECTION

2

O P P O R T U N I T Y

I D E N T I F I C A T I O N

ENTREPRENUER’S

BACKGROUND AND

INVESTMENT

EDUCATIONAL

QUALIFICATIONS

AND EXPERIENCE

LOCATION

AVAILABILITY

OF RAW

MATERIALS

MARKET

POTENTIAL

POLLUTION

CONTROL LAWS

AVAILABILITY

OF SKILLED

MANPOWER

GOVERNMENT

POLICY

INFRASTRUCTURAL

REQUIREMENTS

TECHNOLOGY

AND EQUIPMENT

Steps in Arriving atBusiness Opportunity

Generating Ideas

Screening Process

Formulating the Concept of the Business

Generating Business Ideas

Generation of Business Ideas

Focus on ….

Is there any natural resource which you can commercialize (Natural Resources)?

Are there any existing enterprises you can supply goods or services to (Existing/Expected Enterprises) ?

Are there any existing enterprises doing so well that it would be worthwhile to do thesame (competition) ?

Are there any products/ services for which the market demand will continue toexpand(market driven/ Market-Extension)?

Does the present work suggest any business opportunity (Creative Effort)?

Natural Resources and Business Opportunities

Forest

oMajor forest produces like Timber, Wood, Bamboo, Rubber etc.

oMinor forest produces like Honey, Medicinal and Aromatic plants (vis-à-visRamdev), Natural Fibers, Minor Oil Seeds, Tree leaves and bark

Generation of Business Enterprise Idea contd.

Forest

oBamboo works


Forest

oBamboo works


Forest

oBamboo works


Natural resources and Business Opportunities contd.

Agriculture

Agriculture produces like paddy, wheat, oil seeds, sugarcane, cotton, pulses etc. offershuge opportunity in primary and secondary processing, storage, transportation, etc.

New Opportunities: Mushrooms,

Inputs like certified seeds, fertilizer, pesticides, irrigation facilities, agriculturalimplements, consultancy and services like soil and water testing, agronomy, hydrology,etc)

o New Opportunity : Dip Irrigation, Herbal/organic pesticides, manures


Horticulture

o Inputs like nutrients, insecticides, nursery plants, irrigation facility, tools andequipments.

o Outputs like fruits, vegetables, wastes and by- products

o Processing of fruits, vegetables and by-products




Agro-waste

oprocessing and converting Agro waste such as paddy husk, straw, wheat straw,sugarcane bagasse, cotton stalk, groundnut husk into commercial and industrialproducts

o New Opportunity: organic fertilizer for gardening



Paddy husk


Paddy strawGeneration of Business Enterprise Idea contd.

Agro-waste: SUGAR PLANTATION – OPPORTUNITIES AND BY-PRODUCTS

Sugarcane Plant

Sugarcane: Not Available For Processing

Prime Sugarcane: Available For Processing

Thrust, Leaf &

Inflorescence

Consumer

Market

Gur Making Sugar Making Khandsari Making

Molasses Bagasse Press Mud

Alcohol & Chemical Fuel, Paper, Cattle Feed, particle board

Wax, Polish, Manure

Note: Molasses: Thick dark syrup produced by boiling down juice from sugar cane; especially during sugar refining Bagasse :The dry dusty pulp that remains after juice is extracted from sugar cane or similar plants.


Natural resources and Business Opportunities Contd.

Marine or Aqua

oProducts such as salt, gypsum, marine chemicals, sea weeds, fish and marine animalsoffer vast industrial opportunities.

oTourism related business opportunities such as water sports, diving, surfing, boating,etc. are commercially exploited.



Desert and arid land

oTourism related business opportunities such as festivals, lodging, foods etc

e.g. Kutch festivals



Mineral (clay, iron and steel)

ominerals resources such as coal, iron ore, bauxite, mica, lime stone, marble andgranite stone, soap, stone, graphite, mineral oil and gas etc.

oMining, processing, transportation and other logistics

oMining equipments, tools, testing laboratory, safety equipments and gadgets,prospecting services



Live stocks

oLive stocks includes poultry, cow, buffalo, goat, sheep etc.

oPoultry Farms, Dairy Farms, raising other animals, slaughter house, animal feeds etc.

oBy-products such as bones, leather, horns and huffs, animal hair, blood etc. also are of commercial importance.


Live-stocks

Cattle Sheep/Goats Poultry Piggery Horse Farm Fishiculture Emu/Ostrich/

Rabbit/ turkey

BUSINESS OPPORTUNITIES

→ Cow/Buffalo/Feed

→ Veterinary drugs/medicine

→ Milk & Milk Products e.g. Cottage cheese etc.

→ Hides & Skins

→ Horns & Huffs

→ DCP/Bone Meat/Fish & Poultry Feed

→ Ossein/ Gelatine

→ Feed

→ Broilers, Layers

→ Egg Powder

→ Semen

Generation of Business Enterprise Idea contd. Natural resources and Business Opportunities contd.


Wind/ Sun

o Renewable sources of energy are very important for green environment.

o Wind power generation is possible where sufficient wind velocity is available to run windmill.

o Solar energy offers opportunities to generate electricity and run gadgets such as PV Cellsbased water pumps, lighting, battery chargers, roof top power generation, lantern, solarhot water systems and dryers etc.

o Opportunities in construction, erection, installation, repairs and maintenance of wind mills.


Existing/ Expected Enterprises and Business Opportunities

o Similar Business

o Raw Materials

o Parts and Components

o Further Processing

o Packing Material

o By-product use

o Problem-solving products

o Service Needs

o Growth products and services

o Scarcity of products/ Services

o Other markets

o Export


BUSINESS OPPORTUNITIES BASED ON EXISTING INDUSTRIES

Inputs Required Services RequiredOutput based B.O.

(Downstream

products)

Waste-By-Products

Based B.O.

- Raw materials

- Hardware/software

- Repairs &

Maintenance

- Training

of Manpower

- Transport

- Laundry

- Canteen

- Schools/

- Entertainment

- Event Management

- House keeping

e.g. Readymade

Garments from

cloth produced

By Textile mill

e.g. Paper Mill to

paper conversion

products such as

notes books,

paper bags,

corrugated

boxes, etc.

- Iron turning from

lathe machines

- Fly-ash from coal

Based PowerPlant

- Catalyst waste

from

Petrochemicals/

Fertilizer plant

- Wood dust from

Saw Mills

Existing/ Expected Enterprises and Business Opportunities contd. Generation of Business Enterprise Idea contd.

Industrial development-based opportunities : A Checklist

Is there any established industry in your area? What is the performance rate of thisindustry?

Can you pursue any business ventures in your area, which though uncommon, are yet verysuccessful?

What kind of raw materials, packing materials, components and services the local industriesrequire? Are any of these procured from outside your area?

Do any of these pose problems in terms of availability quality, delivery schedule, etc.?


Industrial development-based opportunities : A Checklist

Do the local industries generate any waste or by-products? What are these used for?Who buys these?

Are there non-local suppliers to a given industry with whom the industry is quitehappy?

Are there any new and important industries being established in your area? What arethey likely to buy or manufacture?

• Are there any infrastructure projects coming up? What are they likely to require?


Waste Management

Existing/ Expected Enterprises and Business Opportunities contdGeneration of Business Enterprise Idea contd.

METAL WORKER IN JAPAN LOADS DISPOSED CELLULAR PHONES ONTO A CONVEYER

BELT WHICH SENDS THEM TO CRUSH AND RECYCLE.

WORKSHOP SALVAGED 50 KG GOLD AND 1000 KG SILVER FROM 3.5 MILLION DISPOSED

CELLULAR PHONES AND ALSO RECOVERED 20 M.T. OF BRONZE.

Waste Management (Contd..)

Existing/ Expected Enterprises and Business Opportunities contd Generation of Business Enterprise Idea contd.

DEMAND/MARKET DRIVEN BUSINESS OPPORTUNITIES

TRADE-FLOWS

Industrial / services / consumer products e.g.

Kerala: coconut , rubber products

Gujarat: Diamond, jewelry, cloths

IMPORT SUBSTITUTION

Import data, toys, consumer goods, mosquito racket / glass beads

GROWTH PRODUCTS

Healthcare Products & Services, Processed Foods, Entertainment Products And Innovative Products

Like; Courier Services, Plastic WaterTank, Sachets, Water Ro Plants


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PRODUCT POSITIONING/DIFFERENTIATION

Product features / applications / price & quality e.g. groundnut – roasted, coateddetergent powder, coconut hair-oil loose to bottle, napkins, vicks vaporub, mosquito spray

EXPORTS

‘Others’ Ready-made Garments, Diamond, Leather Products and so on

Basis For Exports: Pollution, Not-grown / Manufactured, Low Labour Cost, Overseas Market Details (Www.Cbi.Nl, Trade Fairs)

COMPETITITIVE ADVANTAGE, NOT JUST POTENTIAL

Cost of production, freight, subsidies, efficiency, glass beads, ceramic products, paper & plastic products

DEMAND/MARKET DRIVEN OPPORTUNITIES contd. Generation of Business Enterprise Idea contd.

SERVICE SECTOR

Low investment

Low risk

Highly localized

High employment generation

IT services such as BPO engineering services and R&D, and software products

Telecom sector

Tourism

Medical tourism, rural tourism are some new streams fuelling the growth of tourism. Hotels and restaurants sector

CREATIVE EFFORTS

Development Of Problem-solving Products/Services e.g. Aqua Guard, Domestic

Flour Mill

Exploitation of New Technology Or Material To Meet A Widely Felt Need e.g. Vending

Machines, Footwear, Soya Milk

Creating a Demand for a spiritual Product

Technical Extension of an established product concept e.g. Mosquito mat, courier

service, mobile


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CREATIVE EFFORTS contd.

Creating a demand implicit in emerging life style e.g. farm house, time-sharing,

recreation clubs,

Introducing products/services alien to a region/ country e.g credit cards, pre-

fabricated houses, diapers, malls

Value-addition through technical or managerial innovation e.g. pan masala sachet

packing, instant tea/coffee,

Group entrepreneurship e.g. LIJJAT PAPAD, AMUL

VISION- Tata Steel, Nirma,


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EXTENSION/MODIFICATION OF PRESENT WORK-CONTENT

Skill-based self-employment Carpenter, electrician etc. Marketing to production Traders, salesmen Managing or working in a similar enterprise Supervisor, chemist, engineer


Screening Process

Screening Process

Personal-Level

Screening

Firm-Level

Screening

Personal Preference (committed)

Educational & Training Background

Work experience (degree of expertise & knowledge)

Business Network & Contacts (buyers, suppliers or creditors)

Family Support

Personal Values (non-monetary)

Personal-Level Screening

Firm-Level Screening

Market

Technology

Availability of Skills

Availability of Raw Materials

Financial/Capital Requirement

Profitability

Government Support



1. Resource Analysis :The Resource Analysis where strengths and

weaknesses are identified, indicates what the firm is capable of doing at

the start of the business.

Resources Strengths Weaknesso Money

o Materials

o Machines

o Methods

o Manpower

o Management

o Moment (time)

Formulating the Concept of the Business contd.

2. Environmental Analysis: The Environmental Analysis gives an indication whether the business can survive or not.

Environment Strengths Weakness

o Socio-cultural

o Technological & technical

o Economic

o Natural

o Political

o Peace & order

o Population trends

o Government program e.g. MSMEs (Finance, Technical, and Marketing)

o Global environment

Business Opportunities need to be

filtered through a Five-layer Sieve

oResearching your industry – how can you learn more about your chosen industry and

about the resources that are available to help you?

oMarket assessment – is there a market for your product or service? If so, how much income

can you expect to derive from it?


Business Opportunities need to be filtered through a Five-layer Sieve contd.

oProfitability assessment – how much will starting a new business cost you? Can you afford

a lengthy “red link” period following start-up, as well as periodic gaps in cash flow? Can

you afford to fail?

oFinancing assessment – will you be able to obtain the necessary financing for your

business? If so, from where?

oLegal assessment – what potential legal liabilities are you exposing yourself to by starting

a new business? Are the costs of protecting yourself worth the trouble?


Before Starting your Own Business

Does the idea fire your motivation and is it adequate enough to keep you going for next one to two years?

Is it a viable business proposition in your area?

Does it match the needs of your customers - local or otherwise?

Check it out with basic market research

Test it out in the market

Consult with experts

Look out for competition in the field

IS IT A SUNRISE INDUSTRY?

Evaluate your business opportunity

Project conceptualization


Acknowledgement:

This penetration was made on a FDP (Jan. 2014) at EDI, Ahemdabad. Certain editing (addition and deletion) have been done on the same.

BUSINESS OPPORTUNITY IDENTIFICATION AND SELECTION · 7/2/2016 · o Export Generation of Business Enterprise Idea contd. ... Group entrepreneurship e.g. LIJJAT PAPAD, AMUL ... o

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