Opportunity Journal 2 - Business Ideas

The assignment focuses on self-reflection through the Opportunity Journal, where students explore their business ideas, particularly in the construction sector. It emphasizes the importance of identifying unique selling points, conducting market research, and developing a business model. Stude...Read More

Student Name:
Opportunity Journal 2 - Converting Your Ideas into a Business
Instructions:
1. Spend around four hours to work on this journal
2. Work individually because the idea of this exercise is for self-reflection
3. Submit the softcopy of your completed journal through LMS by the deadline date suggested in the turnitin link
NOTE: COPYING ANSWERS FROM OTHER RESOURCES WITHOUT PROPER REFERENCING WILL BE
TREATED AS A PLAGIARISM CASE.
Reflection Point Your Thoughts
What ideas do you have for a new business? You
can use your idea from opportunity journal 1.
NOTE: write one to two paragraphs to explain
about this business idea. You at least need to
identify the product/service that can be
generated from the idea. What is the purpose of
this product/service?
I aim to establish business in the manufacturing
and construction sector. I plan to start up new
business in the domain of construction by
starting up a new company. As I am extremely
motivated and self-driven, with hard working
skills, I can easily establish the business of my
own and become successful. I will aim to set up
business in the construction sector by catering to
housing as well as commercial projects. There
are a number of construction companies in Iran
and the industry is highly competitive in nature.
There are tremendous amounts of opportunity
in the market in Iran as well.
How can you check whether this business idea is
an opportunity or not?
NOTE: You need to identify what sort of research
you need to do? Who you are talking to?
You might need to act on your answer above to
answer the next question.
The business idea is an opportunity in Iran as
there are very few companies in the space.
Though the industry is highly competitive in
nature, but my business idea is unique and offers
tremendous potential for growth. I aim to build
environmentally friendly sustainable smart
homes and commercial space. Such an idea is
gradually creeping in the industry and has high
potential to be successful. This business idea will
offer opportunity to drive my business, as a large
number of customers will be attracted towards
my business. I will also be attracting customers
for transforming their existing spaces into
SMART homes.
On a separate page, provide the opportunity checklist for your business.
Opportunity Checklist:
 New idea
 Prospective new customers
 Unique selling point
 SMART homes industry is still unsaturated
 Population with high income disposition
 High levels of population
Ref: Bygrave, W., and Zacharakis, A., Entrepreneurship, 3nd Ed., Chapter 2, 3, John Wiley, 2014

Student Name:
 Large number of homes and commercial spaces that can be transformed
 Energy shortages is rising
 Environmentally friendly and economic homes offers attractive opportunities
If you transform the opportunity into a business,
describe your business model:
What are your primary sources of revenue?
What are your main costs components?
NOTE: write one to two paragraphs to justify
your answer above
Primary sources of revenue for the business will
be owned funds. The business will be set up by
owned funds and then later in case of need
funds can be borrowed from the bank for
meeting contingencies. I have saved some funds
by doing certain part time and other jobs at odd
places. Such entire funds will be used during
establishing the business. However, such funds
will not suffice and be able to meet the
requirements hence additional funds will be
sourced from banks at low interest rates. I will
aim to arrange funds from my relatives and
parents as well whom I will repay after some
days of starting the business. There will be
several expenses that will be incurred for
establishing the business hence such funds will
need to be arranged at significantly lower costs
as initially it will not be easy to repay off any kind
of loans. Once the business is set up and
functional, it will start generating revenue, which
will be used in repaying off the loan. I will aim
cater to as many customers as possible for
constructing their homes and commercial
spaces. The payments they will be making will be
used in paying off costs and posts such will be
retained as profits into the business.
Cost components of the business will include
several set up costs amounting to funds for
office, labour contract, telephone, insurance
contracts, legal contracts, material costs and
various other miscellaneous expenses. The
business will incur a varied types of costs that
will be used in purchasing necessary equipment
and machineries for developing of properties
and constructing sites in an environmentally
friendly manner. There will be training costs
associated with providing training to masons and
there will be varied types of engineer costs. Civil
Engineers will be hired for constructing
properties and they will be paid according to
specific contracts.
Ref: Bygrave, W., and Zacharakis, A., Entrepreneurship, 3nd Ed., Chapter 2, 3, John Wiley, 2014

Student Name:
In term of entry strategy, identify a small and
feasible market test before you launch your
business.
NOTE: write one to two paragraphs to answer
and explain your rationale.
Market entry strategy for my product will be
solely be aimed at small and medium scale
enterprises or businesses. I will first cater to
small demographic segment near my location
and then later expand into other markets. I will
cater to markets of Esfahan first and then later
gradually enter other market spaces. Through
diligence and constant efforts, I will aim to
undertake analysis of demands and
opportunities present in the market. Posts such
analysis I will extend my marketing skills and
products with the help of strategies for
attracting customers towards an
environmentally friendly idea regarding SMART
homes.
Opportunity Checklist
NOTE: Please see the Opportunity Checklist on LMS that can help you completing this checklist. In
the bottom of the table, you might need to put points to justify your answers.
CUSTOMER YOUR OPPORTUNITY
PTA Demographics The business will cater to age group of 25 years to 60 years of
age. It will cater to both the sexes. It will aim to attract
customers from the middle income group, primarily. It will also
aim to cater to businesses that are small and medium scale who
has less turnover but are environmentally conscious.
PTA Psychographics The business will primary cater to individuals and businesses
who are environmentally conscious. As constructing smart
homes will allow cater to energy savings and other efforts, the
business will aim to attract individuals who want to build their
business concept around sustainability.
Market Size (Number) The market size of Esfahan is small as it is spread across 340
kilometres only. The city has a small population of around 20 lac
individuals only and very few businesses are present. The
market is however growing in size gradually with emergence
and advent of globalisation to cater to an increasing number of
customers.
Market growth (Rate) The market growth rate is estimated to be about 12% annually.
Businesses that set up in Esfahan grow at a rapid rate of around
18% per annum basis, given the low tax burden and low rates of
interests prevailing.
Gross Margin (Percentage –
approximate)
The Gross Margin Percentage for the Smart homes is expected
to be approximately at 15%. Post retention of the gross margins
the net profit margins will be developed.
Frequency of Purchase
(approximate)
I am estimating that the frequency of purchase of smart homes
will be almost regular. Customers will regularly book smart
Ref: Bygrave, W., and Zacharakis, A., Entrepreneurship, 3nd Ed., Chapter 2, 3, John Wiley, 2014

Student Name:
homes technological and other endeavour such that they can
avail energy saving and other benefits.
Operating Expenses
(components only)
Operating expenses of the business will be very high and will
range from IRR 20,000 to IRR 50,000 on a monthly basis.
Volume of Sales (annually or
monthly or daily)
Volume of sales estimated to be generated is IRR50,000
monthly, initially. Later the business is expected to pick up on
its sales volume and earn IRR 200,000.
COMPETITORS YOUR OPPORTUNITY
Number of direct
competitors (approximate),
including their names if
possible.
Direct competitors are a few, they range from 10 to
approximately 30 such businesses that caters to customers.
Such contractors are building homes and manufacturing several
constructions and offices across Iran, especially in Esfahan since
a long time.
Number of indirect
competitors (approximate),
including their names if
possible.
Number of indirect competitors are multiple, especially those
who supply parts of building a home in parts. they often cater
to meeting customer needs easily. Electrical, plumbing parts
suppliers, mechanical parts suppliers often cater to varied range
of demands of the customers.
Strength of main
competitors
Competitors strength comprises of their established businesses
since a long time. They already have a stable client base that
they cater to. They also have fixed vendors and suppliers of
materials who supply the same at cost affordable rates.
VENDORS YOUR OPPORTUNITY
The main vendors (type of
business or business name if
possible)
Some of the key vendors for the business will comprise of Iran
Hovie Co Ltd, which is an electronic parts supplier. Hami Sanat
Isfahan co, Hooshmand brothers Workshop.
Relative strength of the
vendors (can be in terms of
Gross Margin or description)
Vendors within the city are small in size but offers high quality
materials. Strength of the vendors lies in the high quality readily
available materials they provide at substantially low costs.
GOVERNMENT YOUR OPPORTUNITY
Regulation for your industry Businesses needs to register themselves prior to setting up. The
Chambers of Commerce in the country provides that each and
every business registers themselves to abide by the rules.
Further in construction business there needs to be certification
obtained from pollution boards and other necessary legislations
for adhering to rules in the industry.
Taxes for your industry Taxes within the industry at quite low and there are various
rebates as well. On an average businesses are taxed at 20%
rates however, start-ups can avail several and multiple benefits
for establishing their businesses.
NOTE: Some Justifications might be needed for the points above.
Ref: Bygrave, W., and Zacharakis, A., Entrepreneurship, 3nd Ed., Chapter 2, 3, John Wiley, 2014