1. 5.3.1 Outside-In Analysis
1.1. The General Environment
1.1.1. 1. Economic trends -change in the rate of inflation, interests rates, and currency exchange rates.
1.1.2. 2.Sociocultural trends -societal currents that may affect consumer demand, opening up new markets and forcing others to decline.
1.1.3. 3. Political/legal trends -changes in tax law and government regulations (safety rules) that may pose a threat to existing companies.
1.1.4. 4. Global trends -international developments that create new opportunities to expand markets, outsource, invest abroad, and so on.
1.1.4.1. As people and markets around the world become increasingly connected, the impact of the global segment on small business opportunities will increase.
1.1.5. 5. Developments that grow out of technological trends -given the rapid rate of change in this segment of the general environment. Some recent technological developments to keep an eye on include the following:
1.1.5.1. The creation of highly quality, affordable, virtual-reality hardware that could radically transform entertainment and communications.
1.1.5.2. The Internet of Things -connects and combines the limited computing power embedded in devices in the home and office to make advanced automation possible.
1.1.5.3. The fast-selling price of 3-d printing -makes the creation of just about any suitable product possible, as well as fast, inexpensive, and completely customizable.
1.1.5.4. The exponential growth and availability of data collected online, or big data -make high-powered analytics and decision making faster and less expensive.
1.1.6. 6. Demographic trends -population size, age structure, ethnic mix, and wage distribution.
1.2. The Industry Environment
1.2.1. More directly affected by the startup's industry than by the general environment.
1.2.2. There are five factors that determine the nature and degree of competition:
1.2.2.1. New competitors
1.2.2.2. Substitute products/services
1.2.2.3. Rivalry
1.2.2.4. Suppliers
1.2.2.5. Buyers
1.3. The Competitive Environment
1.3.1. Entrepreneurs should answer several questions about the competitors likely to encounter in the marketplace.
1.3.2. It will helps an entrepreneur to evaluate the nature and extend of existing competition and to fine-tune future plans.
2. 5.3.2 Inside-out Analysis
2.1. Building on internal resources and capabilities.
2.2. Core competencies and competitive advantage.
3. 5.3.3 Integrating Internal and External Analyses
3.1. This integration is best revealed through SWOT analysis
3.1.1. Strengths
3.1.2. Weaknesses
3.1.3. Opportunities
3.1.4. Threats
4. 5.4. Selecting Strategies That Capture Opportunities
4.1. Keeping an eye on strategy options
5. 5.4.1 Broad-based Strategy Options
5.1. Choose to build their strategies around emphasis on their low cost or differentiation.
6. 5.4.3 Differentiation-Based Strategy
6.1. A firm can create and sustain an attractive differentiation-based strategy is likely to be successful performer in the marketplace.
7. 5.5 Screening New Business Ideas
7.1. Entrepreneurs need to decide on the business idea that they want to consider further.
8. 5.6.1 A Market Potential
8.1. Potential customers who are interested in purchasing a particular class of products.
9. 5.6.3 New Venture Leadership
9.1. Important to assess whether the entrepreneur, or entrepreneurial team is up to desk.
10. 5.1 Developing Startup Ideas
10.1. -Several motivations may lead you to consider starting an enterprise from scratch rather than pursuing other alternatives.
10.1.1. For example: You may have a personal desire to develop the commercial market for a recently invented or newly developed product and services.
10.2. -Some entrepreneurs get "startup fever" because they want the challenge of succeeding (or falling) on their own OR to avoid undesirable features of existing companies (unpleasant work cultures or smothering legal commitments)
10.3. -By recognizing the nature and origin of startup ideas, an entrepreneur can broaden the range of new ideas available for his or her consideration.
11. 5.1.1 Types Of Startup ideas
11.1. -There are three basic types of ideas from which more startups are launched
11.1.1. Ideas to new markets
11.1.1.1. Concerned with providing customers with a product or service that does not exist in a particular market but exist somewhere else.
11.1.2. Ideas based on new technologies
11.1.2.1. Involve new or relatively new knowledge breakthroughs.
11.1.2.2. High risk: no definitive model or success to follow but it can also offer tremendous promise.
11.1.3. Ideas that offer new benefits
11.1.3.1. Benefits from new or improved products and services or better ways of performing old functions.
12. 5.1.2 Common Resources of Startup Ideas
12.1. Focus on three possible sources
12.1.1. Personal/work experience
12.1.1.1. Allows a person to see possibilities for modifying an existing product, improving a service, becoming a supplier that meets an employer's needs better than current vendors, or duplicating a business concept in a different location.
12.1.2. Hobbies and personal interests
12.1.2.1. People who love skiing might start a ski equipment rental operation as a way to make income from an activity that they enjoy.
12.1.3. Accidental discovery
12.1.3.1. Involves something called serendipity, a facility for making desirable discoveries by accident.