There are 2 different situations that can create business opportunities. They are:
1. Customers require new products/services to solve their problems or needs. In other words, we need to look at the customers' needs. From there, we can know what the customers are looking for and we can come up with creative ideas to solve the problems. This creates a business opportunity for us.
2. Existing products/services are not able to solve problems or fulfill their needs. This creates a business opportunity for us in that we can come up with products/services that can or are able to solve customers' problems. We can come up with products/services that can replace those that are not fulfilling the needs of the customers. In other words, we need to look at the gap in the market.
We can manipulate the opportunities by:
1. Identifying Strengths.
2. Minimizing Weaknesses
3. Using Opportunities.
4. Lessening Threats.
As an entrepreneur, we need to have the skills to identify and choose business opportunities as well as reduce risk. We also need to consider other factors such as:
- Demographic change.
- Psychographic change.
- Import and Export data regarding demand and supply of product/services in market and identifying opportunities.
- Availability of natural resources and technology.
- Relationship between industries.
- Private and government projects.
- Laws and procedures of local government.
- Social responsibility and problems.
- Information technology and communication.
- Globalisation.
- E-commerce.
BEP = FC/(SP-VC)
FC = Fixed Cost
SP = Selling Price
VC = Variable Cost
In short, I have learned many new things regarding business. As a future entrepreneur, we must first acquire the skills and knowledge required in order to kick start our business. I think that the knowledge and infos learned in this class will well benefit me in the future.
TAN JIA HUEI
KET 120044
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