Starting a New Venture: Key Considerations

This assignment delves into the crucial factors involved in launching a successful new business. It emphasizes the importance of conducting a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The document stresses the need to leverage technology and innovative ideas to enhance efficiency and profitability. It also highlights the significance of recognizing entrepreneurial opportunities and overcoming challenges that may impact business viability.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Evaluate various sources of entrepreneurial idea and innovation....................................1
TASK 2............................................................................................................................................2
P2: Rationale and market gap for a particular entrepreneurial idea.......................................2
TASK 3............................................................................................................................................4
P3: Essential data require to support gap analysis in specific entrepreneurial idea...............4
P4: Analysis of data to collect relevant evidence of market potential...................................8
TASK 4............................................................................................................................................8
P5: Apply a SWOT framework to gather an objective assessment........................................8
P6: Evaluating the competitive and market environment.....................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is an essential process of framework, implement and operating a new
venture. It involves expansion and formulation of going concern. It is mainly studied
entrepreneurial attitude, the dynamics of business set-up and expansion of an entrepreneurial
enterprises. The primary role of entrepreneur is to measure up opportunities, threats and
individual capacity to transform an opportunity into a new business idea. This project provides
better understanding of where start-up venture innovative ideas comes from and deliver more
effective opportunities to investigate and analyse latest idea. Selection of particular entrepreneur
idea for determining market gap as well as use of primary and secondary data for examine
market potential. Evaluation of entrepreneurial idea in accordance to market and competitor to
make assessment of specific viability of an organisation (Grégoire and Shepherd, 2012).
TASK 1
P1: Evaluate various sources of entrepreneurial idea and innovation
Over the year, it has been seen that plenty of people that have certain interest in
establishing new a new business. Most of the individuals are having valuable amount of funds
but they are not having ability to invest those or to decided what business is more reliable to
start. Apart from this, there are certain other people those are of narrow minded but there seems
to be scarcity of innovative idea. Business ideas are all within individual minds and within their
own environment. Some of these business opportunities would emanate from proper analysis of
market and consumer requirement. In order to start is new venture “Soft Drinks” is more suitable
in nowadays. There are various sources available to an individual to plan their business in more
effective manner. For this purpose, entrepreneur always looking to attain latest opportunities that
are more reliable and helpful for delivering better growth chances to an organisation. Some of
them are discuss underneath:
External or macro-environmental sources are one of the important ways to create
valuable opportunities to an individual. The role of entrepreneur in weighing up to create
opportunities and individual capacity to transform the ability and knowledge into starting into a
new business (Tang, Kacmar and Busenitz, 2012). Researcher would have recommended that the
following idea for an entrepreneur:
Spotting trends and anticipating their impacts: Searching into actual thinks those are
happening in the society around us or in market. This will also essential to respond quickly to
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certain changes that are present during the time. This idea is taken from recently operating
demand from customer and their craze towards soft drinks. As plenty of companies are already
operating in cold drink sectors so they are more reliable to go along with latest trend is more
accurate options. Instead of this, there are certain other ideas which are mentioned underneath:
Determining a niche market: This seems to involve something missing in the market or
that would be improve by introducing new feature and quality in their services. This is simply
related with spotting any gaps that are present in the marketplace.
Copying idea from other nation: As per this idea, individual should be travelling to
various nations and culture that enable entrepreneur to select best alternative ideas that worked
elsewhere (Hansen, Shrader and Monllor, 2011).
Taking latest scientific method: There are certain other people those are related with
spending time on inventing new products that would relatively different from one another. It is
said to be longer process that produce product that does not create advantages before the idea is
copied.
There are certain types of innovation which are effectively helpful in introducing latest
ideas into action. Creativity is a perfect aspect that separate innovation and invention.
Incremental innovation is said to be utmost important and common form of innovation. It assists
in utilising current technology and enhance value to the customers within the current market.
TASK 2
P2: Rationale and market gap for a particular entrepreneurial idea
“Fizzy World” is a new venture of soft drink company which is started for launching
“Bubbly” drinks at marketplace. However, quality of product is shown by the impressive slogan
which is “Have Fizzy, Be fizzy AND Dance Fizzy”. Main objective of this idea is to promote
enjoyment and joy amongst the whole society as well as between every age group people. Thus,
being an entrepreneur, it is necessary to examine market analysis. This will assist in reducing all
those gaps which are present in the business should be remove easily. It encourages an individual
to reviews everything as an opportunity for creativity innovations. Once Soft drink business get
succeeded the process of market analysis could remain continued. It is essential to determine
market gaps in the early stage of the business. A gap in the market would consists of one or more
of three attributes. Basically, it is said to be something latest and real which can improve on
getting something which is already being present in the market. Gaps are present in everywhere
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in the marketplace (Bolton and Thompson, 2013). It is necessary to determine one out of all that
can provide maximum benefits of available skills which are set out as valuable resources for the
company. There are certain strategies which can be used to assist ideas by determining gaps in
the market which has not being discover earlier. It consists of various aspects such as:
 Trends and latest technology: It is essential for new business to moving according to
the latest trend which is ongoing into the market. As a skilled entrepreneur, they need to
keep continuous eye on latest trends that might impact the way in which society demand.
 Creative combination: Nowadays, every “soft drink company” are trying to use creative
concept in their business so that profitability can be enhancing. By the help of latest
combination, every possible goals and opportunities can be attaining in more quick time.
It is necessary to make proper analysis of market. For this purpose, market analysis is
needed to be done. In order to identify specific requirements of customer types various targeting
new ideas are needed to provide proper shape. That are mentioned underneath:
Segmentation: It is perfect techniques to divide marketplace into various parts which are
definable, accessible and profitable for the business. There are other company which are dealing
in same segment so setting a new soft drink enterprise is more hard as new entrepreneur. It is
marketing process of determining and separating total market into group of potential customers
with common motivation to them (Patzelt and Shepherd, 2011). It consists of:
Geographic segmentation: There are various similar strategies which an entrepreneur
uses to serve their customers in specific areas or in large target audience that is having variety in
their preferences. Certain examples are:
 Region: This would cover continent, nation, state or even neighbourhood.
 Size of metropolitan location: This particular segmentation is done as per the size of
total population.
Demographic segmentation: This market division is done on the basis of age, race,
religion, gender, family income and education. It can use to segment into various markets to
assist an organisation target to their customers in more reliable manner. For the soft drink
products, all age group and religions can be taken into considerations.
Psycho-graphic segmentation: This type of market segmentation would divide their
market on the basis of various traits, value, attitudes and customer’s lifestyles. This is more
helpful for an entrepreneur those are searching to launch new soft drink which is having mix
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flavour taste. This segmentation allows to engage in product framing and marketing in primary
focused.
Behaviour segmentation: It is known as one of the effective process of dividing market
into small units’ group as per various customer behaviour. This is done be keeping brand loyalty
and advantages during any particular occasion. This cold drink is more consume by children,
young as well as old people.
Targeting: A target is a primary group of customers or an organisation which is likely to
purchase products of an organisation in more effective and reliable manner. It is done so
because, they want or require company’s products which are being demanded in the market.
Positioning: It refers as point of customer perception regarding various products those
are being associated with introduction of new products which is dealing in soft drink segment. It
objectives is more clear, unique and provide benefits in the consumer thinking ability (Kirzner,
2015).
TASK 3
P3: Essential data require to support gap analysis in specific entrepreneurial idea
Market survey is utmost important for every new business venture. This will assist in
collecting reliable and positive information regarding their target audience or market. The
primary role of this concept is to deliver “Fizzy World” with an in-depth aspects of the
customers in order to satisfy their essential requirements in more effective manner. This can use
analytical and statistical method to collect information in a well organise manner. There are
various tools and techniques those are required to deal with all sorts of market research. Some of
them are discuss underneath:
Primary research: It is known as one of the major sources of data collection which is
done for the first time from the total number of selected respondents out of total 40 samples size.
This can be done by collecting crucial data from filling questionnaire from them or observing
their behaviour toward soft drink business options (Karimi and et. al., 2016). Primary market
research is best suitable and accurate for making effective decision making. Few questions that
are being asked from selected respondents are mentioned underneath:
QUESTIONNAIRE
Q1: What kind of flavour you like most in soft drinks?
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(a): Orange
(b): Mix (Orange with lime)
(c): Other
Q2: Do you think this soft drink should be more suitable for health conscious people?
(a): (Yes)
(b): (No)
Q3: Does this particular idea would be helpful in creating maximum awareness among people?
(a): Yes
(b): No
(c): Can't Say
Secondary research: It is known as use data which is being taken into consideration by
researcher to make comparison of results with part data. This research could not aim to collect
data from various people. But relies on already published or available from various sources. This
specific research is entirely target on collected of appropriate information either freely or paid
use for other. Such kind of sources are taken into account as many sources that are taken into
account for gathering data which consists of internet sources, magazine of newspaper. The major
benefits of using this research is that it is mostly free and less time consuming. Some important
aspect which are taken under this research are mentioned underneath:
Balance sheet: For this purpose, previous year balance sheet of an organisation can be
taken as help to make comparison of data. As this is new venture so it is not taken for such kind
of research process (Cardon and et. al., 2012).
Profit and loss statement: Another important statement can be taken into consideration
about all those products and services those are helpful in providing maximum profitability to the
company. According to this, new start up business is not having such kind of reports.
P4: Analysis of data to collect relevant evidence of market potential
Q1: What kind of flavour you like most in soft drinks?
Particular
Respondents in
%
(a): Orange 15
(b): Mix (Orange with
lime) 20
(c): Other 5
5

TOTAL 40
Mean 13.33333333
Median 15
Mode 0
Standard deviation 6.236095645
variance 38.88888889
(a): Orange
(b): Mix (Orange with lime)
(c): Other
0
5
10
15
20
25
15
20
5
Colume chart
Respondents in %
According to the above calculation the mean value is 13.33 people think that mix fruit
drink is more in demand from the company. whereas, median value is 15 out of 40 respondents.
A low standard deviation which is 6 under this case indicates that the data points tend to be very
close to the mean.
Q2: Do you think this soft drink should be more suitable for health conscious people?
Particular Respondents in
%
(a): (Yes) 25
(b): (No) 15
TOTAL 40
Mean 20
Median 20
Mode 10
Mean 20
Standard deviation 10.27402334
variance 105.5555556
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25
15
Pie-chart
(a): (Yes)
(b): (No)
From the above calculation, it has been seen that most of the respondents think that it
would be more hygienic and strong drink for the healthy people. On an average around 20
respondents are in the favour of the option. Whereas, median is also the same as the mean value.
it means that there are plenty out of 40 (25) are in the favour of the company.
Q3: Does this particular idea would be helpful in creating maximum awareness among
people?
Particular Respondents in
%
(a): Yes 25
(b): No 10
(c): Can't Say 5
Mean 20
Median 17.5
Mode 5
Standard deviation 8.498365856
variance 72.22222222
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Respondents in %
0
5
10
15
20
25
25
10
5
Colume chart
(a): Yes
(b): No
(c): Can't Say
From the above data collected from the gap analysis. It provides is associated with measure
of central tendency which will be taken into account to get overall perception of the customers
regarding any new changes made by the company. According to the collected results, it has been
found that most of the customer are in favour of the option that it would create awareness among
the people. The mean value is 20, while median of the data is 17.5 and mode is 5. Standard
deviation of the observation is showing 8.4 risks in the provided data.
TASK 4
P5: Apply a SWOT framework to gather an objective assessment
It is essential for the researcher to make use of collected data to determine their positive
and negative aspects that are essential for the company control from major impacts. It is a
systematic information which is helpful in matching an organisation for the purpose of attaining
overall aims and objectives of an organisation. Before introducing new products in the market, it
is necessary for the companies to make proper analysis about customer needs and wants. It is
categories into various parts. Such as:
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Illustration 1: SWOT Analysis
(Source: SWOT analysis, 2017)
Strength:
According to this, it has been seen that “Fizzy World” is more effective and flexible
kind of business which would continue for longer period of time. The major aspect of the
company is:
 Strong taste and quality as compare to other soft drink companies.
 Cost is more economical for every low or medium class people.
 The major strength of “Fizzy World” is about their hygienic factors that can enhance
overall strength of the company (Haase and Lautenschläger, 2011).
Weaknesses:
These are said to be a crucial aspect for the company which would impact their internal
or external departments. This would make huge impacts on their overall productivity and market
stability. All those factors that are present within an organisation control that detract their ability
in order to attain their desire aims and objectives.
 Little business experience in this particular sectors.
 Unnecessary use of expenditure or costs those are incur during production process.
 Competition with coke and Pepsi: There is huge competition among various competitors
those are working for the same line of business operations.
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 Product diversification is much low: It has been seen that this soft drink business is more
reliable and have minimum diversification in their production.
Opportunities:
It is necessary factors that represent specific reason for soft drink business that are going
to be start. This seems to have great opportunities to become more successful business in soft
drink sector are present in an organisation.
Threats:
The seems to be the major aspects which are needed to be taken into consideration. For
this soft drink business, the crucial threat is related with raw material sourcing and all those
indirect competitors those are dealing in same business line.
P6: Evaluating the competitive and market environment
In any new business, the major factor is related with their competitors those are already
present in the market with same line of business idea. Such types of information collected by the
researchers are entirely depend on type of product and services demanded and sales by the
company in order to determine research aims and objectives. It is necessary to make potential
market to size and analyse competition to test usefulness and positioning of their products and
services. It is essential to make analysis of viability of any new idea whether it will work in
better manner for the purpose of increasing their overall effectiveness. By using innovative ideas
in their business operations an entrepreneur need to think about using resources in more reliable
to increase maximum profit with the available resources. A viable business idea would mean that
one can implement in real life as well as creating considerable profits from their overall losses.
This will help an organisation to determine dominate factors that can help an organisation to
increase their profitability in the market (Drucker, 2014).
The economic growth which would be attain by promotion of competition
entrepreneurship and innovation. There are known as effective strategies those are used to create
strategies to reduce unemployment and specifically to enhance proper growth for an
organisation. By this desire to stimulate economic and job opportunities to the application of
entrepreneur which has been common theme in respect of local governance. It is more concern
regarding energy security and climate sustainability which are associated with bringing
consensus in respect to basic requirement that are taken into action. In case of developing nation
this succeeding in bringing people to increase their future growth for an organisation. There are
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certain issues those are related with the starting of any new venture. Some of them are related
with competing in new era globalisation which is more similar components which is combine
according to their scope and overall productivity of Soft drink company.
Rise of new power is specific issues that are exist in any start up business operations but
sometime this would lead to increase overall growth and performance of an organisation. There
are specific challenges those are being faced as their potential competitors which are playing
major role in generating profitability for the company (Johnson, 2016). However, analysis of
competition at marketplace is really indispensable for understanding fluctuation which incurred
at environment. Thus, Porter five force model is highly appropriate for assessing competitive
market by identifying various necessary factors. Some of the elements are discussed as follows-
(Source: Porter five force model, 2017)
 Threats of new entrants: - According to this element, “Fizzy World” needs to analyse
the competitors for making their organizational strategies. For example; lots of large and
small companies are already emerging at marketplace with creative ideas as well as
distinctive taste like; Grapetise, Duke's, Mist Twst henceforth. Basically, these
companies are already following unique Tag-line, slogan, and promotional strategy.
Thus, selected firm always needs to add some creative content in their product such as;
low sugar, free from high range of calories and so on for defending their drink from new
entrants.
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 Threat of substitutes- Market of soft drinks are highly broad in nature due to
maximization in consumer demand at rapid sense. For example; Pepsi, Coca-Cola is a
most successful brand in UK and their products are also loved by almost half of the
world. Thus, company needs to design their Fizzy drinks in different manner by
considering various factors such as; choice of customers, currently trends and so on.
 Bargaining power of customers- As per this factor, company needs to focus on
convincing capability of consumers also because few people are always engaged in
bargaining the product. For example; female clients are love to do these things.
 Bargaining power of suppliers- Raw materials and other supportive products are
requisite to design impressive drinks. For example; designing of unique bottle is
essential for “Fizzy World”. As a result, they need to contact suppliers for buying
plastics or any other resources. Hence, managers of firm needs to learn how to deal with
bargaining ability of suppliers either by offering commission or any other profit.
 Industry rivalry – Soft drink industry is surrounded with high range of competition due
to which selected firm needs to make plans as per the fluctuating factors. For example;
analyse current strategies of competitors, assess changes incurred at marketplace like; in
customer choice.
CONCLUSION
From the above project report, it has been concluded that examine business opportunities
for an entrepreneur is more difficult task. For this purpose, various crucial aspects related with
starting new venture are taken into consideration. Before making any decision, it is necessary to
make implementation of new ideas that can assist in increase efficiency and profitability of an
organisation. It is vital to make use of SWOT analysis and resolve all those issues that are
making impacts on viability of business.
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REFERENCES
Books and Journals:
Grégoire, D. A. and Shepherd, D. A., 2012. Technology-market combinations and the
identification of entrepreneurial opportunities: An investigation of the opportunity-
individual nexus. Academy of Management Journal. 55(4). pp.753-785.
Tang, J., Kacmar, K.M.M. and Busenitz, L., 2012. Entrepreneurial alertness in the pursuit of new
opportunities. Journal of Business Venturing. 27(1). pp.77-94.
Hansen, D.J ., Shrader, R. and Monllor, J., 2011. Defragmenting definitions of entrepreneurial
opportunity. Journal of Small Business Management. 49(2). pp.283-304.
Bolton, W. and Thompson, J., 2013. Entrepreneurs: Talent, temperament and opportunity.
Routledge.
Patzelt, H. and Shepherd, D.A., 2011. Recognizing opportunities for sustainable development.
Entrepreneurship Theory and Practice. 35(4). pp.631-652.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Karimi, S., and et. al., 2016. The Impact of entrepreneurship education: A study of Iranian
students' entrepreneurial intentions and opportunity identification. Journal of Small
Business Management. 54(1). pp.187-209.
Cardon, M.S., and et. al., 2012. Exploring the heart: Entrepreneurial emotion is a hot topic.
Entrepreneurship Theory and Practice. 36(1). pp.1-10.
Haase, H. and Lautenschläger, A., 2011. The ‘teachability dilemma’of entrepreneurship.
International Entrepreneurship and Management Journal. 7(2). pp.145-162.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Online
SWOT analysis, 2017. [Online]. Available through: <http://www.business-to-you.com/swot-
analysis/>.
Porter five force model. 2017.[Online]. Available through:
<https://www.strategicmanagementinsight.com/tools/porters-five-forces.html>.
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