Page 104 - Business_Studies_F5

Student's Book Form Five

Chapter Six

Business planning
FOR ONLINE READING ONLY

Introduction

Failure to plan is a plan to fail. In order to avoid business failure, business
owners, managers, and promoters use business plans. Developing a business
plan enables the planning of all business activities to be conducted at a certain
time. In this chapter, you will learn about identification of business opportunities
and business plan development. The competences developed will enable you to
develop a business plan for a medium-sized business.

Think
Sustainability of a business which has not been properly planned.

Identification of business opportunities
Business opportunities consist of attractive avenues in the environment, which provide
entrepreneurs with the potential for effective business idea development. A promising
opportunity always begins with brilliant business ideas. So, while a business idea
is a creative thought or concept, an opportunity is an evaluated and promising idea.
It portrays a chance to bring that idea to life and make it a reality. Identification
of appropriate business opportunities is an important aspect to business because it
enables the entrepreneurs to identify and focus on what customers are missing. An
entrepreneur can identify business ideas by scanning the environment for unsatisfied or
unfulfilled needs as well as considering customers’ complaints about existing businesses.
Once ideas are effectively evaluated on the bases of market potential, competition,
resources, and ability of the entrepreneur to pursue the idea, then ideas graduate to
opportunities.

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