EDP (LECTURE 3)

MARWARI COLLEGE,RANCHI

(UNDER RANCHI UNIVERSITY,RANCHI)

NAME : RAJU MANJHI

SUB: EDP

SEM: VI(CA/IT/CM)

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Identification of business opportunities.

An entrepreneur perceives an  opportunity for marketing a product or service, then he establishes a business unit on the basis of his or her perception, finally he manages his enterprise, expanding, growing or diversifying over a period of time. In order to establish an entrepreneurial system an entrepreneur needs to take following steps for identification of right opportunity.

1)       Search for business idea: The task of promotion begins with the search of suitable business idea and opportunity. The idea may generate from various sources and should be rated to the starting of a new business or taking over an existing business enterprise. The idea should be sound and workable, so that it may be exploited. It should yield suitable return on investment, and should be such that it can be converted to a business.

            sources and should be rated to the starting of a new business or taking over an              

            existing business enterprise. The idea should be sound and workable, so that

Business ideas can be discovered from: -

·         Careful observation of market can reveal a business idea.

·         Market supply can also reveal the demand and supply positions of the various products.

·         A survey of the available channels of distribution should also be made so that the selling campaign can be properly planned.

·         Competition and market trends can also be found.

·         Prospective consumer: Consumer knows best what he wants and the habits and tastes are going to be popular in the near future. Contacting with consumers can also reveal the features that should be built into a product or service.

·         Development in other nations: People in underdeveloped countries generally follow the fashion trends of developed countries. An entrepreneur can discover good business ideas by keeping in touch with developments in advanced nations.

·         Study of project profile: Various government and private agencies publish periodic profiles of various projects and industries. These profiles describe in detail the technical, financial and market requirements as well as position. A careful scrutiny of such project profiles is very helpful in choosing the line of business.

·         Government organization: Several government organizations nowadays assist entrepreneurs in discovering and evaluating business ideas such as development banks, state industrial development organization, financial institutions, investment centers, export promotional council, etc. These organizations provide advice and assistance in technical, financial and marketing area of business.

·         Trade fair and exhibition: International and national trade fairs held from time to time provide new ideas and also provide some information regarding consumers choice, their requirements and also the position of supply of these products.