6 Processes Of Conducting A Market Survey In Business

A market for a business is all the people within a specific geographical area, who need a product or service and are willing and able to buy it. You may have an excellent product or service to offer to the public; however you have to determine whether there are enough customers willing to buy your product or service on a regular basis. The price of the product or service must give you an adequate margin of profit to allow you to survive and further develop the business. The survey is conducted in order to establish demand and supply gap.
For new entrepreneurs, the process of conducting a market survey involves the following steps;
(1) Defining objectives of the market survey and specifying what information is
required.

(2) Working out the details of the study, such as;
 Identifying sources of obtaining information.
 Time and cost involvement for the study.
 Methodology to be used in gathering information.
 Developing a plan of action.
(3) Selecting samples and deciding what contacts and visit should be made.
(4) Preparing questionnaire and plans for surveys and interviews.
(5) Collating and analyzing data.
(6) Preparing a report of findings.

The above steps are necessary before taking the step of setting up any business.

Business Opportunities (Using SWOT Analysis)

Opportunities occur when people discover a problem of some kind that can be helped with product or services, or when people decide they have certain needs or want to satisfy. Opportunities may also arise from change. Entrepreneurial activity itself causes change to occur as well.

Sources of opportunities could also be an observed demand and supply gap arising from society’s needs and function, growing and evolving economies and economic niches, technological change, social change, demographic change, political changes such as war, tariff and embargoes or artificial scarcities.
Other conditions that may create opportunities include shortages, surpluses, price response, and shifts in demand. 

Entrepreneurs should try to identify, evaluate, select and capture opportunities which can be operated, managed and realized as successful ventures (productive services). Young entrepreneurs need assistance through advice, not only in the areas of profitable investment identification and selection, but also in the field of management, technical know-how, project evaluation, financing, location of suitable sources of appropriate technology, establishment of enterprise services, growth alternatives and adjustments to boundary threats. Assistance in the above areas helps the entrepreneur to establish profitable ideas, capture, activate and actualize them. It helps the entrepreneur uncover his interest and abilities through expert assessment of environment, industry and capabilities of the entrepreneur.

SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) will enable the student mirror himself in relation to identification and assessment of business opportunities. Strengths are his stronghold, Weaknesses imply shortcomings, and Opportunities are possible areas of exploration, while Threats are those things that are cogs in the wheel of progress, such as competitors. Have a nice day.

 

6 Processes Of Exploring Opportunities

Processing opportunity is a favorable challenge posed by the environment which may lead an entrepreneur to enjoy differential advantages such as profits, survival, potentials etc. It is just a set of business conditions waiting to be perceived and conditioned by someone. Dynamic prospecting for
environmental opportunities may lead an entrepreneur to start producing a new product, install a new method of production, open up a new market, discover a new source or uses of raw materials, reorganize an existing enterprise etc. Nigerian business environment is saturated with lots of challenging opportunities. Opportunities are not in short supply, rather, entrepreneurs capable of capitalizing on existing business or of creating new ones are in short supplies. Opportunities are always ever there waiting to be plucked. To take advantage of them, someone must hunt or prospect for them, perceive, capture and realize them. In the words of Carlin (1965), “Opportunity offers itself to men in direct proportion to their ability, will for action, power of vision, experience and knowledge of business” The ability of an individual to create money-making ideas and/or designs, formulate processes/ product/service, is the greatest single power he possesses. Money making requires that opportunities be identified, selected, captured, capitalized and realized by organization to pursue what is captured; retain the organizations; maintain them and sustain their growth and success. Willing entrepreneurs must go through the following process in order to capture attractive investment opportunities, take advantage and make a success of them. 

1) Recognize needs for running a venture:
A venture must be fully recognized. The very propelling influence, need, motive or drive that is responsible for the entrepreneur’s eventual mindset to want to run a venture. 

2) Conduct self – approval:
Define your values, competitive strength, behavior, resources and other capabilities (personal capability analysis). Prospective entrepreneurs must analyse themselves and see if they possess the occupational, professional and entrepreneurial competence needed to run an enterprise being contemplated. Capability and value assessments are technically referred to as “enterprise or company profile” 

3) Scan the environment and industry.
This will enable the entrepreneur to understand the force, institutions and actors that are currently and potentially germane to organization’s activities and performance. Environment of business may be domestic or international, immediate or remote, external or internal, absolute or comparative.
To understand the environment, the following are paramount:
 Environmental scanning
 Environmental forecasting
 Organizational adaptation to environmental changes. 

4) Analyze Business ideas/opportunities: Possible business idea/opportunities should be analyzed to enable the adventurer to determine the interest or otherwise of the idea/opportunity and capability and competence or the financial viability of the project; technical or production pre-feasibility of the project; marketing, commercial or economic viability of the project as well as social desirability. Investment appraisal of the project(s) or ideas may be conducted first, through a pre-feasibility study which highlights the prospect of the project(s) and second through a
comprehensive feasibility study that provides critical, technical, economic, and financial and management of the project(s). 

5) Select the best idea/opportunity/project. This stage is an investment  decision stage. Criteria for accepting or rejecting the project, called selection factors, are put in place. Such selection factors may be objective (quantitative) or subjective (behavioral, qualitative or judgmental). 

6) Capture/implement the idea/project; the business ideas are bodies of thought and reflections about the nature and structure of business and what should then be the guiding principles on which to build the business. It guides the direction of the enterprise; idea tells the entrepreneur what to do and what not to do. For the contemplative entrepreneur not to remain a dreamer, he has to be on the alert to start something. He must have courage and self confidence in his ability to run and manage an enterprise. The first step of the implementation process is to start with a comprehensive business plan, which marshals, allocates and deploys resources needed for the actualization of the business. Have a nice day.

The Technique For Generating Business Ideas

Potential entrepreneurs require guidance on how to generate business ideas. They are also expected to identify, assess and utilize business opportunities to their advantage. 

It is against this background that effort is made in this section to guide potential entrepreneurs to generate business ideas and explore available business opportunities. 

Business opportunity is an attractive investment idea or proposition that provides the possibility of a return for the investor/risk taker. Such opportunities are presented by customer requirements and lead to the provision of a product or service which creates or adds value for its buyer or end user. 

Nigeria, South Africa, India, China and the USA for example are lands of vast and rich human and natural resources with exceptional opportunities for full development. There are creative, innovative and profitable possibilities which offer a range of opportunities for the young people with the zeal to develop their skill and also driven by achievement motivation. 

There are diverse opportunities in the following areas for the imaginative, creative, inventive and innovative minds such as: 

1. Stone and Mineral based industry 

2. Chemical and Allied industry
3. Petroleum industry both upstream and down stream
4.  Mechanical and metallurgical industry
5.  Electrical industry
 6. Electronic industry
7.  Forest based industry
 8. Agro-based Allied industries
9.  Rubber based industry
10.  Leather industry
11.  Water Resources based opportunities
 12. Service Industry
13 Miscellaneous activities such as Pharmaceuticals, Paper processing etc.

 Potential and active entrepreneurs can always use the strength, weakness opportunities and threats (SWOT) model to identify opportunities around them. 

Look around you today, there can possibly be an opportunity waiting to harnessed. Have a wonderful day.

The Process Of Business Idea Generation

A business idea is the response of a person or organization to solving an identified problem or to meeting perceived needs in the environment (markets, community, etc) A business idea is a pre – requisite for a successful business venture. Good business ideas result from effort and often creativity of the entrepreneur. Finding a good idea is the first step in transforming the entrepreneur’s desire
and creativity into a business opportunity. There are several sources of good ideas. To be successful in generating or finding one, however, the entrepreneur needs to keep his/her mind and eyes open and be alert to opportunities. An idea however good, is only a tool at the end of the day. It needs to be developed and transformed into a viable business opportunity.

Sources of business ideas include:
 Hobbies/interests
 Personal skills and experience
 Franchises
 Mass media (news papers, magazines, TV, internet etc)
 Exhibitions
 Surveys
 Complaints
 Brainstorming
 Creativity

Reasons for generating business ideas:
 Business idea generation is a sine-qua-non ((inevitable) for business.
 Ideas are generated to respond to market needs
 Ideas are also generated to respond to changing fashions and requirements.
 In order to stay ahead of competition
 To be in tune with latest technology so as to do things better.
 In response to product life cycle
 In order to spread risk and allow for failure. 

Stay tuned for more updates. Have a wonderful day.