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AE 24 Module 1 Lesson 4

The document provides guidance on prospecting for new business opportunities and determining the feasibility of potential ventures. It discusses how to identify prospective businesses like a talent scout or salesperson by carefully scanning the environment. Several forms of business opportunities are outlined, including increasing demand, policy changes, new concepts, and specialized services. Once an opportunity is selected, a feasibility study is recommended to analyze aspects like management, marketing, production, financing, profitability, and social impact to determine if the business idea is viable. The feasibility study is a detailed investigation and evaluation of a proposed venture.

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61 views2 pages

AE 24 Module 1 Lesson 4

The document provides guidance on prospecting for new business opportunities and determining the feasibility of potential ventures. It discusses how to identify prospective businesses like a talent scout or salesperson by carefully scanning the environment. Several forms of business opportunities are outlined, including increasing demand, policy changes, new concepts, and specialized services. Once an opportunity is selected, a feasibility study is recommended to analyze aspects like management, marketing, production, financing, profitability, and social impact to determine if the business idea is viable. The feasibility study is a detailed investigation and evaluation of a proposed venture.

Uploaded by

James Aguilar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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DALUBHASAAN NG LUNGSOD NG SAN PABLO

Lungsod ng San Pablo

Bachelor of Science in Accountancy


Module 1 in AE 24
Lesson 4 Title: Business Prospecting

Learning Objectives: To learn how prospect or identify prospective business


To know and learn how to start business
To project by means of various studies if chosen business will succeed

References: 1. Business Finance by Roberto G. Medina, Ph.D.


2. BUSINESS: An Integrated Framework by Dr. Fry, Dr. Stoner, Dr. Hatwick

Lectures/Explanations/Discussions

When a determined individual has finally decided to go into business, it will not wise for him/her to grab the
first opportunity that comes along. First he/she should carefully scan the environment for other possible
openings. He or She should prepare a list of alternatives business opportunities and he/she make choice from
that list.

The Search for Business Opportunities

A person searching for a suitable business opportunity should learn the ways of a talent scout of a salesman
looking for a prospect.

The talent scout, aware of the requirements of the market- whether radio, television, recording, or the
movies—goes around searching. He/She stays longer, however, in places where talents abound. The scout does
not forget that there are lots of good talents but only a few of them, can be classified as commercial or one who
can satisfy a big market.

The salesman on the other hand, prepares list of his prospects and from there males his evaluation and
decides on who is worth seeing. The salesman also should also not forget that there are prospects of better
quality than others.

Like a talent scout, the prospective businessman should have the skill to choose an opening that will be
commercial and will bring him enough revenues. Also, like a salesman, the prospective investor should have the
skill to pick the right business opportunity from his list and which is of better quality other indicated in the same
list.

Business opportunities come in several forms. They should be a result of any of the following;

1. Increasing demand for basic commodities due to increase in population;

2. Rising prices for control of existing products like construction materials;

3. Relaxation of government policies like lifting of import restrictions

4. The development of new service concept like the issuance and delivery of passports through courier
service;
5. The development of new product concept like the engine that runs on water;

6. The increasing demand for specialized service like manpower export service, health and fitness
services, management consultancy and skills training;

7. The increasing requirements of the wholesale and retail industry.


Determination of Feasibility

Once a choice has been made on the business to adapt, the feasibility should be determined. Oftentimes, a
feasibility study is required. If the idea is found not to be feasible, it should be discarded and a new one
considered for determination of feasibility.

The feasibility study is a detailed investigation and analysis of a proposed business venture to determine its
viability. According to the need, the study must contain some or all of the following:

1. Management study including proponents, personnel, and organization.


2. Marketing study.
3. Production facilities and the product.
4. Taxation and legal aspects.
5. Financing aspects.
6. Profitability; and
7. Social desirability.

Prepared:

Ramon R. Enriquez, CPA, CIA, MBA


Course Instructor

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