Carry out an Opportunity analysis for a new venture creation.? Writing an Opportunity analysis (or feasibility study) can help finalise your busi

1

Opportunity Analysis Report Template (40%)

NB: this is a template that you could use for opportunity analysis with some points/questions to

consider

Please note that the word limit suggestion for each session is for general guidance only. Should

you wish to include more or fewer words in each session is entirely up to you. All five sessions

are weighted equally and we advise you to make a full use of appendices.

Contents

1. Executive Summary

2. External Environmental Analysis

3. Industry Analysis

4. Key People and Skills

5. Financial Feasibility

6. References and Appendices

Below is an extended outline of the Opportunity Analysis Report explaining step-by-step what you

need to include in each session of the report.

NB: One of the strategies to ensure you have included all the points in your report is to copy and

paste the extended version of your Opportunity Analysis Report Template and then include

information covering all relevant points. Please do not forget to delete the outlined questions

when you completed your analysis and it is ready for submission.

2

Extended Contents

1. Executive Summary (please provide a short, no more than one-page summary of your

business proposal)

• Include an outline of your business idea based on your feasibility analysis.

• Your summary should provide answers to following questions:

• What do you intend to sell?

• Where will be your ‘position’ in the market?

• What is the Industry like?

• Who are the main players and stakeholders?

• Who will be your customers?

• How will you obtain products and reach your customers?

• How will you provide services or sell your products?

• Also, you need to include information about people and skills needed to successfully run

your new venture.

2. External Environmental Analysis (approx. 500 words)

• The key objective of carrying out an external (macro) analysis is to review the environment

in which your business is operating as the basis for strategic decision.

• To identify a viable opportunity, you need to look for the trends in the environment that

can affect your business (Hint: A current demographic change towards aging population

today creates many opportunities for entrepreneurs to serve this market by offering

products and services specifically targeted for 50-plus customers).

• Foretelling the future is always a doubtful activity, therefore the best we can do is to look

around at trends and new ideas and try to estimate which once are likely to continue.

• Apply PESTEL analysis to identify what political, economic, social, technological,

environmental, legal pressures will present main implications for your customers (and

hence your products and services) and your technology and the way you work.

3. Industry Analysis (approx. 600 words)

• The key objective in analysing the industry and market is to review the market for goods

and services, the competition you face, and the decision you need to take to ensure

success of your new venture.

• In this stage we use market segmentation to identify potential customers, we assess the

impact of our competitors and use market survey methods to characterise potential

customers and their needs.

• There are many ways of narrowing down the list of your potential customers or identifying

your niche market.

• Try to a) list the geographical areas in which you will trade with customers;

• b) list the characteristics of the people most likely to buy your products/services;

3

• c) list the characteristics and likely requirements of the intermediaries you hope to do

business with;

• d) list the characteristics of the kind of organizations you want to do business with.

• An important stage in analysing the market is characterising the customers. Ask the

following questions to define your customers:

o Where they are to be found?

o Exactly what they are likely to buy? (in terms of quality, size, colour, delivery etc.)

o How much will they buy? (e.g. quantity to be purchased and frequency).

• There may be a wealth of information about your potential customers

o from household expenditure surveys,

o sector reports on industry and commerce.

o You can also obtain the important data on your customers from primary data

▪ (Hint: The best way to learn about your customers is to go and talk to

potential customers about their needs and concerns).

• Now that you have a clear idea about your potential customers and their needs as they

relate to your proposed business, you need to identify the companies that are currently

meeting these needs.

o How does your competitor create value?

o There is little point in trying to compete with an established competitor in features

where they are strong.

o You may need to match these – or deliberately take a different line (Hint: See Blue

Ocean Strategy).

o You need to identify the advantages of your products and services and benefits

offered to each group of customers.

o What is your ‘USP’ or your ‘unique selling point’?

• Here are some tools you might consider using to analyse the Industry and Market –

o Porter’s 5 Forces Model, Blue Ocean Strategy,

Porter’s Generic Strategies/Bowman’s Strategy Clock, 4Ps of marketing, Four Cs-

company/customers/competitors/collaborators, and SWOT/TOWS.

4. Key People and Skills (approx. 500 words)

• Having identified the core of your business, you must now decide what skills you and your

key people will need to make the business a success.

• This is an important stage in your entrepreneurial journey because people who invest in

your business or lend you money will want to know how you will cope,

o therefore it is important you spell out the key tasks and

o state why you think people you have can together deliver the goods/services.

• Identify skills required for your business, then identify the people who should have these

skills.

4

o If people identified do not have the skills, indicate how these skills will be made

available to the firm.

• Here is the list of skills that you may need for your new venture:

o a) Technical skills (What knowledge and skills do you need to successfully run a

new business? What machinery will you use and who will run/maintain it?);

o b) Marketing skills (What do you need to know about the market-place, the sources

of information? Who will identify your potential customers? Who will set the sales

targets?);

o c) Negotiating skills (What skills and abilities will you need in negotiating deals with

customers, suppliers, the bank manager?). Other skills to consider are: Planning

skills, Money Management, Quality assurance, Transport and distribution, Health

and Safety etc.

• Please note that the skills and abilities needed to run a business will depend on the nature

of your business.

5. Financial Feasibility (approx. 400 words)

• It is important to make realistic estimate of your sales over the plan period, to forecast

receipts from sales and to set working targets.

o The way you can use data varies according to the business. E.g. if you are opening

a Beauty shop, you can obtain figures for the turnover for different types of shops

in the location you have chosen. Market surveys can also reveal the extent to which

customers would be prepared to use the services you propose to offer. You need

to include Sales and Revenue Forecast for 1st year (see 1st year financial projections

spreadsheet), Profit and Loss Forecast for 1st year.

• One of the most difficult tasks for the start-up entrepreneur is calculating how much money

it’s going to take to start the new venture.

o You also need to calculate your Start-up’s Cash Requirements

o (Hint: Include fixed and variable costs in your calculation.

o Please note that a fixed cost in one business can be a variable cost in another, e.g.

If you are running a retail shop, then the cost of the goods you have sold (not the

cost of goods you have bought), represents your variable cost).

• Outline your financing options.

o Sources of funds may include

o a) Equity funding (original investments by the owners);

o b) Loaned money (bank loan, a mortgage, overdraft);

o c) Lease, hire or rent.

o Provide a brief outline of your financing options (more details will be required in

the Business plan).

6. References and Appendices – Please include any appendices, spreadsheets to support your proposal, and include a separate page with references.