Launch - Summer 2008 - (Page 25)

Most of the information presented in this article is based on research and writing conducted by Greg Warnock and presented in the Junto Partner Training series. Opportunities Are Revealed, Not Created manage their costs and preserve their cash for what really matters — sales. Finding the Best Business Opportunities It is important to understand that business opportunities surface virtually without assistance from anyone. They are revealed by circumstances and not created. They lie waiting to be discovered and pursued by the observant entrepreneur. Such things as market conditions, advances in technology and changing customer demands create opportunities that will exist until change occurs and the opportunity is lost. Some opportunities, even some with great potential value, are never really discovered nor fully exploited. Some are simply passed over and others are never given the resources needed to nurture them into anything of value. But those who learn to discover opportunities early on in their lifecycle where there is sufficient time to mature them and cultivate the opportunity before competitors step in, win the entrepreneurial game. In fact, the earlier an opportunity is discovered, the less resource it generally requires to advance it to a stage where value is created for the customer and the entrepreneur. The entrepreneur who develops and hones the skills to detect opportunities early in their life cycle will be much more successful in creating business value. Characteristics of Entrepreneurial Opportunities So where do entrepreneurs find the best business opportunities? For the most part, they find them in the environment in which they currently work, live or have an interest. Consider again these facts from the Inc. 500: >> 47 percent of business opportunities were discovered in work-related activities. That means that while on the job the entrepreneur saw an opportunity related to what he or she was currently doing and chased it. >> 15 percent of the opportunities were discovered by making an improvement on what someone else had already done. >> 11 percent came from noticing an unfilled niche in the consumer market place. >> Markets that are undergoing significant change create opportunities for the quick response and flexibility an entrepreneur can bring to meeting market needs, beating out even well-established businesses. >> Markets that lend themselves to selling directly to the customers create opportunities for the entrepreneur who has the personal ability and drive to build customer relationships and make the sale. Shaping Your Own Opportunities The very best opportunities reflect a common set of characteristics. It is this set of characteristics that most distinguishes an opportunity from simply an idea. Each year, Inc. magazine reports on these characteristics. Consider some findings from their recent report: $10 million sales: Entrepreneurial opportunities generally serve markets that are smaller, regional or even local in nature where services can be customized to meet unique customer demands. Trying to find that one unique business opportunity that no one has yet discovered is pretty much a wasted effort. There simply are very few truly unique opportunities that no one else has considered. The fact is that most entrepreneurial success is achieved simply by taking an existing business concept, building on it, and converting it to a new opportunity. Entrepreneurs can shape their own opportunities and increase their value by doing some of the following: 200 percent growth: Targeted business opportunities offer the potential for growth of 200 percent or more. 10 to 25 percent margin: These opportunities are profitable, strong and attractive. $10,000 to $40,000 launch cost: These opportunities are not expensive to pursue. These entrepreneurs carefully Opportunity in Execution: There is often an untapped wealth of opportunity in simply doing things better than the rest. Call it customer service or building customer loyalty, but the fact is that business opportunities can and are created solely on the basis of superior execution even in the face of significant competition. summer 08 launch 25

Table of Contents Feed for the Digital Edition of Launch - Summer 2008

Launch - Summer 2008 Contents Editor's Note Dashboard Marketing Column Funding Column Sales Column Risks vs. Rewards Myths of Entrepreneurship Opportunities vs. Ideas Funding Options for Startups Making Sense of Term Sheets

Launch - Summer 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.