Opportunity identification is the collection of three main factors, which are the entrepreneur’s background, the business influence, and the general business environment.
Opportunity identification has five stages that lead to ‘recognition’. The five stages are discussed in relation to the process of opportunity identification. These stages are:
The preparation stage is when knowledge and experience are exercised just before the opportunity discovery process. This knowledge and experience are not often deliberately acquired.
However, the preparation itself is usually a deliberate attempt to widen capability in an area and become sensitive to concerns in a field of interest.
In an organized situation, the background of the business, the products or services, or the technological knowledge must have majorly informed the main ideas of the successful venture.
One cannot, however, rule out the role of new ideas and expertise originating from individuals in the organization that will eventually result in a new business.
The incubation stage is the part of the opportunity identification process that involves the consideration of a concept or a specific problem ordinarily not subjected to conscious or formal analysis by a businessman or his team.
It is usually not consciously done and therefore more often than not, an instinctive and unempirical approach to the consideration of several potential alternatives.
The insight stage occurs at the moment a fundamental solution suddenly becomes recognized unexpectedly. It is a particular moment that keeps occurring persistently right through the process of opportunity identification.
Insights are extensive channels to the discovery of startup businesses and sometimes reveal additional knowledge for the development of a current process of discovery.
In respect of a business venture, insight predictably encompasses the abrupt recognition of an opportunity in business, the answer to an adequately pondered crisis, and the possession of a concept from social networks and associates.
The evaluation stage is about investigating if the recognized and developed ideas are feasible, if the businessman has the required abilities to realize the ideas and if the idea is sufficiently innovative for prospects.
It sometimes involves a full feasibility analysis of the ideas through all forms of research instruments and criticisms from relevant business acquaintances.
It is fundamental to also investigate the prospect and viability of the new insight ideas as the spirit of entrepreneurship is to make satisfactory and sensible profits.
Elaboration is that stage that exposes the opportunity/ideas to external analysis with the tedious and time–consuming options selection, choice decision, and organization of resources. It is customarily in search of all legalities that could build confidence and guarantee the practicability of the business.
Elaboration also reduces uncertainties by providing detailed planning activities after the evaluation viability confirmation. This will eventually reveal the concept areas that still need further analysis and attention.
In conclusion, to capture business opportunities, you must listen to your potential clients and past leads. When you’re targeting potential customers listen to their needs, wants challenges, and frustrations with your industry. Listen to your customers. Look at your competitors