Introduction
An opportunity is differentiated from an idea in terms of its marketing possibilities. All opportunities are exploitable for business growth and customer acceptance. Opportunity is profitable for business. But all business ideas are not marketable or profitable for the business firm. Among a hundred ideas only two or three are acceptable for them. Not all ideas are becoming commercial opportunity. (Allis 2008).
Body
A good idea is an essential component of success of any business. The success of a business depends upon its ability to formulate unique ideas and convert it as an opportunity instantly. Opportunities are always related to needs and demands of customers in the market. Before undertaking an opportunity as a business, the needs and demands of targeted customer group has to be identified properly. For modifying the opportunity as a business way, the personal skills of entrepreneurs have to be applied on it. (Adams 2008).
“An idea is a thought that lacks action and potential for profit. An opportunity, on the other hand, is an idea that can be executed, at a profit, within an undetermined period of time (a window of opportunity).” (Steward 2008).
What has to happen to convert that idea into an opportunity with potential?
For converting an idea in to an opportunity, judgment of the created ideas have to be done quickly. Thus unique ideas can be traced instantly. Opportunity evaluation process also has to be done to identify the market potential and growth prospects available with the opportunity. For this the following methods can be adopted.
Screening venture opportunities: The selection of most sufficient ideas within the minimum time limit is essential for getting competitiveness in business operations. By applying Quick Screen method on ideas, entrepreneurs can identify the significant ideas within one hour. Broad overview of the ideas will provide through quick screen method. Wasting of time and resources on lower potential ideas can be avoided through this approach.
Venture opportunity screening Exercises (VOSE): It is adoptable for screening of ideas. Time is a major factor in business. Opportunities are the end products of developed ideas. Thud through VOSE the right choice of potential ideas can be done. The time requirements for converting an idea into an opportunity have to be minimized through this method. (Chapter 5: The Opportunity, p.2).
Due to the uniqueness of each venture, not every idea is relevant to a particular business. While undertaking a particular idea as an opportunity, the business environment and circumstances have to be considered. An idea occupying money making characteristics are considered as opportunity. Only few of the ideas are advantages for business through customer attraction and profitability. After undertaking an idea as an opportunity for the business, entrepreneurs has to take steps to shape the opportunity. For this the needs and objectives of the business concern have to be analyzed. The cost effectiveness of particular idea comparing with its alternatives also has to be considered. The selection criteria for an opportunity must be in terms of major benefits, market possibility and potential business strengths supplied by each opportunity. (Chapter 5: The Opportunity, p.3).
For shaping an idea into an opportunity, a thorough research on the market characteristics has o be carried out by the entrepreneurs. Analysis of competitors will provide an overview about the potential strength and competency of the firm with regard to its competitors. (Chapter 4: Shaping your Opportunity, The opportunity, Creating shaping, recognizing, Seizing, p.139).
Conclusion
The time required for converting an idea in to an opportunity is the major factor determining the competency of a firm. For generating ideas and convert them into business opportunity entrepreneurial skills have to be applied on them. Thus better opportunity for improving the business growth and profitability can be recognized instantly. Wastage of time and cost can be minimized through scrutiny of ideas in terms of market requirements.
Bibliography
- ADAMS, Rob. (2008). What’s the Difference Between a Business Idea and an Opportunity. [online]. Business on Squidoo.
- ALLIS, Ryan P. (2008). Business Idea and Operation Evaluation. [online]. Venture Choice: Creating Venture Value. Web.
- STEWARD, Scott. (2008). The Difference Between an Idea and an Opportunity. [online]. Miles Media and Marketing.
- Chapter 5: The Opportunity, p.2. (Provided by the Customer).
- Chapter 5: The Opportunity, p.3. (Provided by the Customer).
- Chapter 4: Shaping your Opportunity, The opportunity, Creating shaping, recognizing, Seizing, p.139. (Provided by the Customer).