bmgt 330- entrepreneurship and venture planning

Hide Assignment InformationInstructions
Project 1: Finding New Business Opportunities
Due in Week 3
Project Purpose
In this project, you will select a new business opportunity, that interests you, and
which will be the subject of all the course work assignments. You will explain why thi
opportunity is for you and at first blush appears right for you to begin.
Outcomes You Will Meet by Completing This Project:
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Able to identify a possible business opportunity.
How to predict the target market for your product or services.
How to evaluate the personal probability of success.
How to evaluate for potential competitors.
Instructions
Review some of the ways to find ideas in the class material to help you select a
business. You may have idea of your own already that is great but be careful to look
at is commercial viability and your ability to make it happen. There are also some
ideas in the articles listed below. Select an idea that you personally believe is a
business you could start and could participate in developing. In making your choice,
pay close attention to the idea of whether you have an idea in which people will
benefit from and therefore buy what you are selling. NO business is too small as
long as you make money.
In two pages write a thumbnail sketch of your idea, along with an explanation as to
how the idea was selected by you and why it appeals to you personally. Answer the
following questions in your explanation:
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Is this a new business idea or is their existing competition?;
Does this idea serve to fill a need sufficient enough to appeal to a wide group of
customers?;
Who is the group target market that would be interested in this project?;
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Complete a Pest Analysis Pest Analysis Format
Do you have the core competencies to run a business of this nature?; and
Is this idea financially viable for you?
20 Businesses You Can Start for Under $100
Best Business Ideas to Start While Working Full Time
Include a minimum of 2 relevant sources from the course readings, articles from
the online library, BLS.gov SBA.gov and others to support your work. Create a
Word or Rich Text Format (RTF) document that is double-spaced, 12-point
font. The final product should be no more than 2 pages in length, not including the
title page and reference list.
Submit the paper in the Assignment Folder
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How to Set Up the Paper
Writing is an important part of demonstrating good communication skills. Should
you need help in any of these areas, please refer to the APA module located in the
content area of the course or ask the professor for guidance.
Use the grading rubric and instructions as guides. Be sure to cover all that is asked of
you in the assignment and do so in a way that will guide the professor into giving a
high grade. Finally, all work that you submit for this project should be your own.
Remember your pledge to uphold academic integrity in all work that you prepare and
submit.
Review Rubric
NOTE: All submitted work is to be your original work.
Due on Jun 4, 2024 11:59 PM
Attachments
How To Find and Select an Idea
Module 1: Entrepreneurship
Overview
This section identifies methods of analyzing ideas to determine whether or not they represent
opportunities. New concepts and good ideas benefit no one unless they are properly analyzed and
communicated in clear and concise thoughts and explanations.
Objectives
After completing section 4, you should be able to:
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discuss why ideas are not necessarily opportunities
identify and describe sources of potential opportunities
screen an idea to analyze its potential for successful implementation
determine the estimated cost of pursuing a new opportunity
describe the roles of the entrepreneurial manager and strategist
Lecture Outline
I. Ideas are not the same as opportunities
1. successful entrepreneurs are able to separate opportunities from ideas
a. an opportunity has the potential for interested parties (clients, employees,
investors, owners) to benefit from a tangible market innovation resulting from an
idea
b. an idea should be able, if and when implemented as an innovation in the
marketplace, to create value for the interested parties
2. the entrepreneur must first identify the interested parties, define what constitutes value to
each interested party, and estimate the value expected to accrue from the endeavor
a. customers or clients are interested in what value is being offered in return for their
money
b. investors typically seek either capital appreciation or income over a
predetermined time period at an anticipated rate
3. the entrepreneur must determine if the idea represents a significant innovation in the
market, or is a different way of doing the same thing
4. the entrepreneur must define a target market, and analyze the demographics, competition,
and competitive advantage
5. risks must be assessed, in terms of spreading and managing real and perceived risks
6. marketplace uncertainties represent major sources of risk for a new venture, including:
a. the economic conditions
b. the sociopolitical, legal, and technological conditions of a given field
c. the ability to compete effectively
d. the capital markets
II. Evaluation of new ideas
1. most ideas involve a new way of looking at an old idea; ideas can be internally generated,
or come from others
2. most successful ventures are the result of one or two specific ideas that have been
nurtured over time
3. to objectively assess the business potential of new ideas, the entrepreneur must:
a. determine the extent to which the ideas add value to the marketplace
b. avoid becoming too psychologically caught up in an idea because it is one’s own
c. appreciate the characteristics and attitudes of the marketplace
III. Screening ideas in search of opportunities
1. determine how the idea is different from products or services as presently offered
2. estimate risks
a. time (Can a product be brought to market while the demand exists?)
b. technical (Can the product be produced in a feasible manner?)
c. competitive (Can the product prove superior to other competing products in its
defined market niche?)
d. monetary (Can investors obtain an adequate return commensurate with perceived
risks?)
3. analyze the production, manufacturing, or service delivery process regarding the product
or service
4. estimate the total cost of the new venture
a. production costs
b. marketing costs
c. general business operations
d. type of costs (fixed/variable)
IV. Decision-making analysis
1. certain choices can lead entrepreneurs to focus on approximating a rational ideal, but
decision-making can be improved by using decision analysis, linear models, or
computerized decision aids
2. “decision analysis refers to separating the decision process into its components prior to
making the decision” (Northcraft and Neale 1990, 197).
a. one common method is using the “decision tree,” which requires the following
information:
i.
the possible courses of action
ii. the events that might follow from those actions
iii. the likelihood of each event
iv.
the value of each event to the decision maker
b. assuming that this information is accurate and available, the decision maker is
able to reach conclusions in a more systematic way
3. cultural variations to decision making
a. different cultures exhibit and foster different decision making styles
b. for example, as Pascale and Athos (1981) note:
The Japanese image of a good decision maker is the man who can resist the drive
for closure until he really sees what’s required. That is the ideal for the Japanese.
The American ideal has more fast action….Its an energetic, kinetic image. The
Japanese image is contemplative—not in the meditative sense, but in the sense
that permits deeper perception. (114)
c. when dealing with entrepreneurs or executives from other cultures, an American
entrepreneur must be aware of and respect the unique traditions and values of
those cultures
With regard to American and Japanese decision making, it should be realized that,
depending on the market dynamics and product, each may have advantages. For
instance, in trading commodities or acquiring real estate, the ability and
confidence to take fast and decisive action without complete information is
critical. Conversely, developing a successful long-term market plan may rely
more heavily on contemplation, as opposed to fast action.
V. Entrepreneurial manager and strategist
1. in addition to separating good ideas from bad ideas, it is also important to have superior
entrepreneurial management and strategies
2. entrepreneurial managers generally have the following core competencies:
a. ability to focus on the market, rather than on the technology
b. financial foresight to determine adequate capitalization
c. ability to develop a top management team
d. ability to determine a specific role for the founding entrepreneur and stick to it
e. ability to know when to bring in professional management
3. entrepreneurial strategies include the following:
a. being first in the market with a new product or service
b. positioning a new or improved product in an underserved market niche
c. focusing the product on a small but defensible niche
d. changing the economic characteristics of products, markets or industries