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Chapter 11

The document discusses the 12 Rs of Opportunity Screening that entrepreneurs should consider when evaluating new business opportunities. The 12 Rs are: Relevance, Resonance, Reinforcement, Revenues, Responsiveness, Reach, Range, Revolutionary Impact, Returns, Relative Ease of Implementation, Resources Required, and Risks. Considering these factors helps entrepreneurs identify opportunities that are well-aligned with their goals and values, have market demand and growth potential, and require manageable investments of time, money and other resources to implement successfully.

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elyn
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1K views

Chapter 11

The document discusses the 12 Rs of Opportunity Screening that entrepreneurs should consider when evaluating new business opportunities. The 12 Rs are: Relevance, Resonance, Reinforcement, Revenues, Responsiveness, Reach, Range, Revolutionary Impact, Returns, Relative Ease of Implementation, Resources Required, and Risks. Considering these factors helps entrepreneurs identify opportunities that are well-aligned with their goals and values, have market demand and growth potential, and require manageable investments of time, money and other resources to implement successfully.

Uploaded by

elyn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Edukasyong Pantahanan at Pangkabuhayan with

Entrepreneurship

DISCUSSION QUESTIONS:

Define and explain each the 12 Rs of Opportunity Screening.

1. Relevance to vision, mission, and objectives of the entrepreneur. The


opportunity must be aligned with what you have as your personal vision,
mission, and objectives for the enterprise you want to set up. Regardless of
whether you’re running a small business or a large corporation, having a
company mission and vision help to provide the owner and the employees
with a purpose. The mission and vision of an organization are integral to the
company’s strategy because they are used to define future goals and
operational tactics.

2. Resonance to values. Other than vision, mission, and objectives, the


opportunity must match the values and desired virtues that you have or
wish to impart. No one likes to do business with people that are arrogant,
selfish, dismissive and egotistic. Any business venture is a reflection of the
entrepreneur's personal values, attitudes, and beliefs.

3. Reinforcement of Entrepreneurial Interests. It is in our interest to promote


entrepreneurship, not only for the nation’s pride but to also create jobs for
many of us. Those who succeed in the business word would eventually need
to hire people in order to grow, and in the process giving livelihood to
everyone around them. And that is a good enough reason to push for the
reinforcement of the entrepreneurial interest in our country.

4. Revenues. In any entrepreneurial endeavor, it is important to determine the


sales potential of the products or services you want to offer. The most basic
point about the importance of revenue is that without it, your company
cannot earn a profit and stay viable in the long run. Revenue also has
critical psychological implications both internally and externally for your
business. Revenue affords similar comfort to business partners, suppliers,
community members and other stakeholders impacted by your business.

5. Responsiveness to customer needs and wants. If the opportunity that you


want to pursue addresses the unfulfilled or underserved needs and wants
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Edukasyong Pantahanan at Pangkabuhayan with
Entrepreneurship
of customers, then you have a better chance of succeeding. Your
responsiveness to prospects and customers alike has a huge impact on
whether or not consumers opt to do business with you in the first place, and
then whether or not they come back. Businesses who provide their
customers with a great experience reap the rewards of greater earnings.

6. Reach. Opportunities that have good chances of expanding through


branches, distributorships, dealerships, or franchise outlets in order to attain
rapid growth are better opportunities. It counts the size of your unique
potential audience or customers. Business expansion has the potential to
expose your products and services to a broader audience. Increasing your
customer base will help you convert more customers and improve your
sales. This leads to higher profits.

7. Range. The opportunity can potentially lead to a wide range of possible


product or service offerings, thus, tapping many market segments of the
industry. To define your total market, start by stating the needs you will fulfill:
Who are your products or services intended for? Who do you want to do
business with? What is unique about your product? You can use a variety
of approaches to segment your total market into groups with common
wants or needs.

8. Revolutionary Impact. If you think that the opportunity will most likely be the
“next big thing” or even a game-changer that will revolutionize the industry,
then there is a big potential for the chosen opportunity. It also means taking
the initiative to do something that you love, something that you're good at,
and something that will make you money. The companies go beyond
innovating their products and services, their customer experiences and
business models. They seek to innovate how their markets work.

9. Returns. It is a fact that products with low costs of production and


operations but are sold at higher prices will definitely yield the highest
returns on investments. Returns can also be intangible; meaning, they come
in the form of high profile recognition or image projection. Having the
foresight to determine if an investment will result in a positive return allows
you to make financial decisions that will ultimately help you successfully
grow your business.

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Edukasyong Pantahanan at Pangkabuhayan with
Entrepreneurship
10. Relative Ease of Implementation. Will the opportunity be relatively easy to
implement for the entrepreneur or will there be a lot of obstacles and
competency gaps to overcome? If a business do something with ease,
they do it easily, without difficulty or effort. Very basically it just mean how
easy it is to get it working.

11. Resources Required. Opportunities requiring fewer resources from the


entrepreneur may be more favored than those requiring more resources. A
crucial part of a business is, the resources available to conduct the business
activities in the best way possible, to generate the maximum benefit for the
company. It is always best to first determine what the resources for a
company are, and which your company will require. A resource is defined
as: “an economic factor required to accomplish an activity, or as a means
to achieve the desired outcome”.

12. Risks. In an entrepreneurial endeavor, there will always be risks. However,


some opportunities carry more risks than others, such as those with high
technological, market, financial, and people risks. Entrepreneurs must plan
wisely in terms of budgeting and show investors that they are considering
risks by creating a realistic business plan. Taking risks is closely linked with
entrepreneurship. Successful entrepreneurship involves taking risks. If you
don’t embrace risk-taking, you may want to rethink being a business owner.

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Edukasyong Pantahanan at Pangkabuhayan with
Entrepreneurship

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