OPPURTUNITY SCREENING

GROUP 1-(11-SIRIUS)
DATE: JULY 08, 2019
FILL IN THE BLANKS

• After __________ __________ comes

the rigorous process of Opportunity
_________ . Because of the many
opportunities possible for the
__________, it is important to come up
with a short list of a few very promising
_________, which could be scrutinized in
detail.
OPPURTUNITY SCREENING

• After Opportunity Seeking comes the

rigorous process of Opportunity
Screening . Because of the many
opportunities possible for the
entrepreneur, it is important to come up
with a short list of a few very promising
opportunities, which could be scrutinized
in detail.
 THE PERSONAL SCREEN

• In screening opportunities, the

entrepreneur first has to consider his or
her preferences or capabilities by asking
three basic questions:
 THE PERSONAL SCREEN
1. Do I have the drive to pursue this
business opportunity to the end?
2. Will I spend all my time, effort, and
money to make the business
opportunity work?
3. Will I sacrifice my existing lifestyle,
endure emotional hardship, and forego
my usual comforts to succeed in this
business opportunity?
 THE PERSONAL SCREEN

• If “YES” is your answer to all of the

above, then you can begin your
earnest pursuit of that opportunity. At
the simplest level, the entrepreneur
may want to make a risk-return grid
(Table 2.2.) shown as follows:
Table 2.2. Risk-Return Grid for
Screening Opportunities
Risk Low Risk` Medium High Risk
Risk
Return
High BEST GOOD FAIR
Return

Medium GOOD FAIR BAD

Return

Low Return FAIR BAD WORST

 The 12 R’S of Opportunity
Screening

• A more complex screening grid

uses 12 Criteria for screening
opportunities.
 Relevance to Resonance to values
vision, mission,
Reinforcement of
and objectives of
Entrepreneurial
the entrepreneur
Interests
1. How does the opportunity resonate with the
entrepreneur’s personal interests, talents, and
skills?
2. The opportunity must be aligned with what you
have as your personal vision, mission, and
objectives for the enterprise you want to set up
3. The opportunity must match the values and desired
virtues that you have or wish to impart.
 The 12 R’S 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
 The 12 R’S of Opportunity
Screening
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.
3. Reinforcement of Entrepreneurial
Interests. How does the opportunity
resonate with the entrepreneur’s
personal interests, talents, and skills?
Revenues Responsiveness Reach
to customer
needs and wants

1. Opportunity that you want to pursue,

addresses the unfulfilled or undeserved
needs and wants of customers
2. It is important to determine the sales
potential of the products or services you
want to offer
3. Opportunities that have good chances of
expanding through branches, distributorships,
dealerships, or franchise outlets
 The 12 R’S of Opportunity
Screening

4. Revenues. In any entrepreneurial

endeavor, it is important to determine
the sales potential of the products or
services you want to offer. Is there a
big enough market out there to grab
and nurture for growth?
 The 12 R’S of Opportunity
Screening
5) Responsiveness to customer needs and
wants. If the opportunity that you want to
pursue, addresses the unfulfilled or
undeserved needs and wants of customers,
then you have a better chance of succeeding.
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.
 Range Revolutionary Returns
Impact
1. The opportunity can potentially lead to a
wide range of possible product or service
offerings, thus, tapping many market
segments of the industry.
2. That products with low costs of production
and operations but are sold at higher prices
will definitely yield the highest returns on
investments.
3. The opportunity will most likely be the “next
big thing” or even a game-changer
 The 12 R’S of Opportunity
Screening
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.
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.
 The 12 R’S of Opportunity
Screening

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.
Relative Ease of Resources
Implementation Risks
Required

1. In entrepreneurial endeavor, there will

always be risks
2. Opportunities requiring fewer resources
from the entrepreneur may be favored
than those requiring more resources.
3. The opportunity be relatively easy to
implement for the entrepreneur or there
will be a lot of obstacles and competency
gaps to overcome
 The 12 R’S of Opportunity
Screening
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?
11.Resources Required. Opportunities
requiring fewer resources from the
entrepreneur may be favored than those
requiring more resources.
 The 12 R’S of Opportunity
Screening

12. Risks. In 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
 The 12 R’S of Opportunity
Screening

• These criteria can be better managed if

quantified and formed into a matrix to
help the entrepreneur concretize the
evidence that the chosen opportunity (or
opportunities is well worth pursuing.
 Table 2.3. Opportunity Screening Matrix
Criteria Very High Average Low Very Sample Score
High Low Weight

Opportunity Screening Grid for each Opportunity

Rating 5 4 3 2 1 Weight Score
*
1. Relevance 2

2. Resonance 1

3. Reinforcement
of 1
Entrepreneuria
l Interests

4. Revenues 2

5. Responsiveness 1
6. Reach 1
7. Range 1
8. Revolutionary 2
Impact

9. Returns 4
10. Relative Ease of
Implementation
1

Rating 1 2 3 4 5
11. Resources 1
Required
12. Risks 3
Total Score

*Rating x Weight = Score

Note

• Criteria numbers 1 to 10 are positive

indicators; meaning, the more of them,
the better. Criteria numbers 11 and 12
are negative indicators meaning, the less
of them, the better. Hence the rating
system is reserved for the negative
indicators.
END OF PRESENTATION