On the fifth week, I had been taught on how to seek business
opportunities and transform them into real business. Observation on existing
market and research may give you an insight of potential business
opportunities. Basically, there are two situations for business opportunities
to exist. Firstly, existing product is not able to fulfill the needs of their
customers or solve the problems of their customers. Secondly, there is not yet
product developed to meet the demand. After recognizing the business
opportunities, entrepreneur should analyze the environmental factors,
self-abilities and business idea. Such assessment is crucial because it helps
entrepreneurs to identify risk, competition and budget. The following formula
is the way to calculate loss.
BEP=FC/(SP-VC)
Where
BEP = Break even point
FC = Fixed cost
SP = Selling price
VC = Variable cost
Careful assessments have to be made to determine
suitability of a business.
I have learnt that we should not start up our
business in haste.
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