Opportunity RecognitionRecognizing Business Opportunities

The types of situations that usually lead to the birth of a

successful business

1.) Problems that a new business can solve

• Examples: Mother-in-law pod, solves the problem of adding on to the house to allow grandma to live with you.

• Dockers: Wrinkle-free pants, & stain resistant pants

2.) Changes in laws, situations, or trends

• Prohibition: Alcohol was illegal to sell

• Prohibition abolished: Alcohol companies began

• Trends: new styles allow new companies to emerge (colored pants, converse all-stars

3.) Inventions of completely new products or services

• TV’s (product)

• Internet (service)

• I-phone

• MP3 player

• Hands free phones

• Laptops

4.) Beat competition in one or more of the following categories

• Price (Wal-Mart, Old Navy)

• Quality (Honda)

• Reputation (Apple)

• Reliability (Verizon)

• Location (Starbucks, & McDonald’s, Wal-Mart with soccer field on top)

• Hours of operation (7-11, Open on Christmas, Wendy’s, taco bell “4th meal”)

5.) Technological or scientifical advances

• Microchips

• Internet, using fiber optic cables to transmit information

• Smaller phones using smaller chips

• Hybrid (half gas, half electricity)

• Water based cars (someday)

1.) Problems that a new business can solve

2.) Changes in laws, situations, or trends

3.) Inventions of completely new products or services

4.) Beat competition in one or more of the following categories

5.) Technological or scientifical advances