Goodday and happy new year to you my fellow steemians, welcome to the first series of #businesstime with @bekky in the year 2018, and incase you had missed the last series, you can check them here
[Series 1](https://steemit.com/business/@bekky/business-time-with-bekky-series-1-business-basics-what-do-you-know-about-business-the-forms-and-the-classification)
[Series 2](https://steemit.com/business/@bekky/business-time-bekky-series-2-entreprnuership-definition-and-charactersitics-of-an-enterpreneur)
[Series 3](https://steemit.com/business/@bekky/business-time-bekky-series3-enterprise-forms-and-classifications-of-enterprises)
[Series 4](https://steemit.com/business/@bekky/businesstime-with-bekky-series-4-how-to-generate-and-analyse-business-ideas)
Therefore, last time I took us through how we can generate and analyse all business ideas.
In today's series, I will taking us on **how to evaluate business ideas**.
>Business opportunities are found within the environment and the ability to scan the environment and come up with ideas that would create a viable business is what distinguished the entrepreneur deom others.
**Environmental scanning is the sniffing around process of the immediate or chosen surrounding of an entrepreneur for possibility of an idea to emerge**
The initial step, to take once an idea that creates a business is identified, is to evaluate it to determine whether it would help create a viable business or not.
Before assessing business opportunity, it has to begin with feasibility study and preparing a business plan is putting in place a kind od operational guideline or blue print to achieve your goal.
Another thing that is very important in assessing business opportunity involves an introspective evaluation of self : determing who you are and what you can do. **"This is fundamental"**
Your readiness in terms of knowledge, skill and personal traits and characteristics go a long way to determining your success in your chosen venture.
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Analysing **internal and external** environment is equally involved in business idea evaluation. Using Pearce and Robinson classification: The three dimensions of areas of concern in this matter that are strategic to operations of a firm are as follows:
1. **Internal Activities** which has to do with the internal variables assets, including human capital, operational procedures, producta/ service and so on of a firm.
2. **Immediate External Environment** which has to do with competition, suppliers, scarce resources, government agencies and their ever more numerous regulations and customers whose preferences often inexplicably shift.
3. **Remote External Environment** which has to do with economic and social conditions, political priorities, and technological development, all of which must be anticipated, monitored, assessed, and incorporated into the executive's decision making.
The instrument of anlysis relating to the above varibles is what is referred to as **SWOT** analysis.
**SWOT ANALYSIS**
SWOT is an acronyn for:
**S - Strength**
**W - Weaknesses**
**O - Opportunities**
**T - Threat**
This refers to the internal**Strength** and **Weaknesses** of a firm on one hand, and external **Opportunities** and **Threats** it faces while carrying out its activities.
This technique is used by managers, business owners or entrepreneurs to quickly determine a firm's strategic position. It is based on the assumption that an effective strategy derives from a sound "fit" between a firm's internal resources (Strengths and weaknesses) and its external situation (opportunities and threats).
A host of external factors that influence a firm's choice of direction and action constitute the external environment and they can be categoried into three as foolows:
* Factors in the industry
* Factors in the remote environment
* Factors in the operating environment
***Fundamental Issues in SWOT analysis are the opportunities and threats***
**Opportunity: this is a major favourble situation in a firm's environment. The elements include:**
* Trends
* Previously overlooked market segment identified
* Changes in competitive circumstances
* Regulatory circumstancea changes
* Technological changes
* Buyer or supplier relationship improvement
**Threats : A threat is a major unfavourable situation in a firm's environment and the elements include:**
* Entrance of new competitors
* Slow market growth
* Bargaining power of key buyers or suppliers increament
* Technological changes
* New or revised regulations
<center>[Soruce](https://play.google.com/store/apps/details?id=com.pixabay.pixabayapp)</center>
***The second level of challenges is in the identification of internal strengths and weaknesses***
**Strengths: This is a resource advantage relative to competitors and the needs of the market a firm serve. It is a distinctive competence when it gives the firm a comparative advantage in the marketplace. Strengths arise feom the resources and competenciea available to the firm. The elements of strength includes the following:**
* Solid asset base / financial cpacity
* Impressive goodwill
* Competent and trained and motivated human resources
* Appropriate technology
* Competent management staff
**Weaknesses: A weakness is a limitation or deficiency in one or more resources or competencies relative to competitors that impedes a firm's effective performance. Elements of weakness include:**
* Limited financial capacity
* Incompetent personnel
* Obsolete technology
* Obsolete product / service
* Clumsy in physical setting and structure
**THIS WILL BE THE END OF THIS SERIES ON #businesstime, MEET ME ON NEXT SERIES WHERE WE WILL DISCUSSING " INCORPORATION AND LEGAL FORM OF BUSINESS"**
I remain your naija lady @bekky...
#onelovekeepsustogether!
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