opportunity assessment plan vs business plan

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The difference between a business plan and planning.

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A business plan is the result of thinking, researching, strategizing, and reaching conclusions about how to pursue opportunities. It may exist only in the head of the planner, but it’s better when written down.

Whether elaborate or simple, a written business plan is an assembly of facts, ideas, assumptions and projections about the future. Here are three ways to use a written plan:

1. Document the due diligence on a new business or the future of an existing one.

2. Evaluate opportunities and challenges and compare them with your strengths and weaknesses.

3. Assist when getting a bank loan and is essential when courting investors.

So how does a static, written plan work when a business is always in motion? It works when you turn your plan into planning. A plan is like a parked car; planning is taking that car on a trip.

Planning is measuring your business motion against the baseline of assumptions and projections you made in your plan. Planning allows you to see how smart you were when the plan was written, or where your research and assumption skills need work. It also highlights external forces you face.

Written business plans often become collateral damage during challenging economic times. But you can’t allow planning to meet the same fate. Indeed, when things slow down there is even greater need to check your position than when things are rocking and rolling.

Here is a critical two-step planning activity that is the heart of a business plan and the essence of planning. Beginning with these will help you operate more successfully anytime, but especially when things are slow.

-Build a 12-month cash flow spreadsheet in a program like Excel so you can project and track the monthly relationship between cash collections and cash disbursements from all sources. This planning tool will provide a rolling picture of cash flow in any given month.

-Look at the “Ending cash” number at the bottom of each month’s column. A negative number in any month means you’ll need to add cash from sales, reduce expenses, add cash from another source, like a bank loan, or some combination.

A banker once told me that if I could bring him only one financial document with a loan request it should be a 12-month cash flow projection that includes both how the borrowed cash would be used and the debt service. I always listen to my banker, and you should too.

Write this on a rock… A business plan is important, but planning is essential.

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What’s an Opportunity Assessment and Why Do You Need One?

Jul 26, 2022

• customer experience
• customer loyalty
• implementation
• marketing efficiency
• marketing procurement
• project management

Marketing leaders are accustomed to pivoting to deliver value against the organizational growth agenda, whether due to economic instability, geopolitical crises, accelerating digital behaviors or shifting customer expectations. But marketing transformation is easier said than done.

According to McKinsey , 70% of large-scale organizational transformation projects fail to meet their objectives. Well-intentioned efforts often get derailed due to poor planning or lack of proper resources to successfully complete each critical step, from research to strategy to execution.

Knowing the potential pitfalls and drivers of success will enable you to transition with confidence, balancing short- and long-term results.

3 barriers to successful marketing  transformation

Marketing transformation often fails because of these three factors:

1. You have a lot of data but no clear view of the baseline.

Beginning your transformation strategy without thoroughly assessing quality baseline data across people, processes, technology, vendors and financials impedes the establishment of a credible business case for change.

You’re not alone if you struggle to assess whether your current resources provide sufficient value—especially if you have multiple brands. But this analysis is essential to determine the opportunity for improvement and which approach would help you meet those objectives.

2. Your operational models, processes, procedures, and resources are disparate and dispersed.

Every objective in your marketing transformation journey must begin with a solid understanding of what’s working, what’s not and why.

Executing a thorough in-house opportunity assessment can be difficult and time intensive when marketing resources are spread across local, regional and global markets. Even seasoned marketers struggle to know where to begin or which questions to ask to remove organizational barriers that will inhibit their ability to complete this step successfully.

3. You do not have in-house change management experts.

When your baseline data, measurable objectives, strategy and timeline for your marketing transformation are in place, implementation will falter without expert-level resources to strategically secure stakeholder buy-in.

Engaging stakeholders with the business case for change must start on day one. Focusing on outcomes, not activities, allows you to mitigate costly disruptions and delays.

Opt for an opportunity assessment

When done properly, an opportunity assessment collates and analyzes data to identify opportunities for growth and delivers a strategy to accomplish your growth objectives and goals. It’s underpinned by a commitment to transparency and alignment through approval checkpoints.

An external opportunity assessment provides agnostic interpretations of data and makes unbiased recommendations. Moreover, stakeholders often have an easier time accepting the business case for change from an outside perspective.

How to evaluate a potential external partner

The components of a comprehensive opportunity analysis cover three categories: preparation, discovery, and solution build. Use this framework to assess a potential external partner’s capabilities.

Preparation steps:

• Create a scope of work.
• Establish a business case framework.
• Gather data.
• Map stakeholders.
• Create a change management plan and accompanying communications strategy.

Discovery steps:

• Conduct a quantitative and qualitative assessment to map the current state across all business units.
• Consider one-on-one interviews and group workshops to learn from internal stakeholders.
• Review and analyze data.
• Evaluate internal and brand-facing technology.
• Assess agency partnerships.
• Identify opportunities for cost savings, quality improvements, and speed efficiencies.

Solution build steps:

• Establish a future model for people, processes, and technology across all brands.
• Identify opportunities for automation, digitization, and content management.
• Outline an implementation plan.
• Establish a long-term roadmap

How to facilitate a successful opportunity assessment partnership

Once you’ve found the right partner for an opportunity assessment, take these steps to contribute to the project’s success.

• Identify an internal project manager to serve as the point person for the opportunity assessment and eventual transformation.
• Provide access to data and ways of working in full transparency.
• Provide connection to the right people who need to remain informed and engaged.
• Execute the change management plan in cooperation with the external partner to elicit buy-in from the executive team and budget holders.
• Participate in joint planning with regular reviews and feedback characterized by open and honest engagement.

Activate your marketing transformation

Often, an external partnership ends after the delivery of the opportunity assessment results and recommended strategy. Ideally, find a partner for the opportunity assessment that also provides the services for activation. The insight acquired through the opportunity assessment will improve implementation quality and speed the process.

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5 Steps to Conduct Market Opportunity Analysis [Example Included]

• by Alice Ananian
• June 3, 2024

In entrepreneurship, recognizing and capitalizing on market opportunities is like striking gold. Market opportunity analysis is the thorough dissection of market conditions and trends to unveil prospects that align with the growth and direction of your business. For entrepreneurs, startups, and small business owners, conducting a meticulous market opportunity analysis could be the difference between success and stagnation.

What is a Market Opportunity?

Before venturing into the steps of analysis, understanding the term “market opportunity” is imperative. A market opportunity is essentially a sweet spot in the business world where a need or want exists among consumers, and there’s an opening for a company to fill that gap. It’s a chance to capitalize on a situation where there’s potential for profit by providing a product or service that clicks with the target market.

This is what a market opportunity entails:

Unmet Needs or Wants: At the core, it boils down to identifying something that people desire but aren’t necessarily getting from current offerings in the market. This could be a completely new need arising from technological advancements or a gap in existing products or services that leaves consumers feeling unsatisfied.

Profitable Potential: There should be a sizable group of people willing to pay for the solution you’re proposing. The size of the market and the willingness to spend are crucial factors in determining the overall appeal of the opportunity.

Addressing the Gap:   A market opportunity isn’t just about identifying a need; it’s about offering a solution that stands out.  This could involve creating a completely new product category, significantly improving upon existing options, or tailoring something to a specific niche audience that feels neglected.

These are the broad avenues by which market opportunities can be spotted:

Market Research: Conducting thorough research to understand consumer trends, competitor analysis, and overall market sentiment can reveal gaps that your business idea can address.

Analyzing Customer Behavior: How people interact with products and services can provide clues about what they find frustrating or lacking. Look for ways to streamline processes or add features that enhance the customer experience.

Innovation and Invention: Sometimes, the most lucrative opportunities lie in creating entirely new categories or disrupting existing markets with groundbreaking ideas.

Considering Broader Trends:   Major shifts in society, technology, or environmental concerns can open doors for innovative solutions.  Think about how your product or service can address these emerging needs.

By identifying and capitalizing on market opportunities, businesses can achieve growth, expand their market share, and establish themselves as leaders in their respective fields.

Factors Influencing Market Opportunity

The landscape of a market opportunity is shaped by a complex interplay of various factors. There are several key factors that contribute to an opportunity’s attractiveness.

Market Dynamics:

• Supply and Demand: This fundamental principle dictates the overall attractiveness of an opportunity. A strong market opportunity thrives on a healthy imbalance between unmet demand and readily available solutions. If there’s a limited market for your offering or if existing players effectively fulfill the need, the opportunity might be less promising.
• Competition: The competitive landscape significantly impacts an opportunity. A market dominated by a few strong players makes it challenging for new entrants. However, an opportunity might still exist if you can offer a differentiated product, target a niche market, or disrupt the current model altogether.
• Market Size and Growth: The size of the target market, along with its projected growth, determines the potential revenue and scalability of your venture. Targeting a large and growing market with your solution offers a wider audience and a more sustainable business model.

External Factors:

• Economic Conditions:   Overall economic health plays a big role. During economic booms, consumers have more disposable income, making them more receptive to new products and services. Conversely, economic downturns can lead to cautious spending, hindering the success of new market entries.
• Technological Advancements:   Technological disruptions can create entirely new market opportunities or reshape existing ones.  Staying on top of technological trends allows you to leverage advancements to create innovative solutions or improve existing ones.
• Sociocultural Trends: Shifts in demographics, societal values, and lifestyles can open doors for businesses that cater to these evolving preferences. Understanding these trends allows you to tailor your product or service to resonate with the changing consumer landscape.
• Political and Legal Environment: Government policies, regulations, and legal frameworks can influence the viability of a market opportunity.  Ensure there are no legal roadblocks or unexpected costs associated with entering the market due to regulations.
• Environmental Considerations: Sustainability concerns are becoming increasingly important. A market opportunity that offers eco-friendly solutions or caters to the growing demand for responsible business practices can be highly attractive.

Additional Considerations:

Industry Trends:   Understanding the specific trends within your target industry can reveal emerging opportunities or areas ripe for disruption.

Customer Pain Points:   Identifying the frustrations and challenges faced by potential customers allows you to craft solutions that directly address their needs.

Understanding and leveraging these factors to identify and act upon market opportunities can be the key catalyst for successful business innovation, setting the stage for the next critical steps in developing a strategic business plan.

Benefits of Market Opportunity Analysis

A market opportunity analysis is a crucial step for any business looking to thrive. It’s essentially a deep dive into the potential of a market opportunity, analyzing its viability and weighing the pros and cons before committing resources. Here’s why a market opportunity assessment is so important:

Informed Decision Making  

Without a thorough assessment, you’re essentially gambling on the success of your venture. The assessment provides valuable data and insights that illuminate the potential risks and rewards associated with the opportunity. This allows you to make strategic decisions based on facts and figures, not hunches.

Reduced Risk

By pinpointing potential challenges and roadblocks early on, you can take steps to mitigate risks or even pivot to a more promising opportunity. Early detection is key to avoiding costly mistakes and wasted resources.

Optimized Resource Allocation

Resources, such as time, money, and personnel, are finite. The assessment helps you allocate resources effectively by highlighting areas that require the most focus and investment. You can prioritize efforts where they’ll have the biggest impact.

Identifying Unmet Needs

A well-conducted assessment goes beyond surface-level analysis. It helps you unearth deeper customer needs that aren’t being fully addressed by existing solutions. This allows you to tailor your product or service for a more targeted and impactful approach.

Competitive Advantage

The assessment process reveals your competitor landscape. You can identify their strengths and weaknesses, allowing you to develop a differentiated offering that stands out in the market.

Customer Focus

By understanding your target market intimately through the assessment, you can ensure your product or service resonates with their needs and preferences. This customer-centric approach is essential for building a loyal customer base.

Financial Projections

The assessment helps you develop realistic financial projections based on market size, pricing strategy, and potential sales volume. This allows you to make informed decisions about funding requirements, profitability, and potential return on investment (ROI).

Stronger Business Plan

The findings from the assessment feed directly into the creation of a robust business plan. This plan, grounded in solid market research and data, becomes a roadmap for your business growth and success.

Investor Confidence

If you’re seeking investment, a market opportunity assessment demonstrates your due diligence and understanding of the market landscape. This instills confidence in investors and increases the likelihood of securing funding.

Market Opportunity Analysis Process Step by Step

Use this market opportunity analysis template for your next endeavor to streamline and systematize the process:

Step 1: Define Your Focus

Imagine you’re a company that makes fitness trackers. You see a potential rise in demand for wearable health monitors. Here’s how to define your scope:

• Identify Market Opportunities: Brainstorm possibilities within the wearables market. Maybe it’s a fitness tracker for kids or one focused on sleep monitoring.
• Choose Your Focus: Pick a specific opportunity to delve deeper into, like a sleep-oriented tracker. This will guide your research.

Step 2: Dive into Market Research

• Gather Data: Look for a mix of primary and secondary sources. Conduct surveys or interview potential customers (primary). Gather market reports and industry publications (secondary).
• Market Landscape:   Find the size of the target market (people with sleep issues interested in trackers) and its growth projections. Look for trends like the growing interest in personalized health data.
• Customer Needs and Pain Points:   What are people’s sleep concerns? Do existing trackers address them effectively? Maybe they lack user-friendly interfaces or in-depth sleep analysis.

Step 3: Analyze the Competition

• Who are the Competitors? Identify companies offering sleep trackers or similar wearables targeting sleep issues.
• Competitive Landscape:   Research their strengths (reliable data, long battery life) and weaknesses (complex setup, generic insights). Analyze their marketing strategies and target audience.
• Your Competitive Edge:   Can you offer a tracker with a user-friendly app and detailed sleep stage monitoring, differentiating yourself from competitors?

Step 4: Market Evaluation

• Market Attractiveness:   Is the sleep tracker market big enough with room for growth?  Is there a strong customer base willing to pay for such a device?
• Business Alignment: Does this opportunity align with your company’s expertise in wearable technology and focus on health?
• Resource Requirements:   Consider the resources needed –  developing the tracker, designing the app, and potentially new manufacturing processes.

Step 5: Decision and Planning

• Go or No-Go: Based on your research,  decide if this sleep tracker opportunity is worth pursuing. Weigh the potential risks (high development costs, competition) and rewards (capturing a new market segment).
• Market Entry Strategy:   If you decide to move forward, create a plan. This includes your tracker’s features, pricing strategy, target audience for marketing, and how you’ll manufacture and distribute the device.

Remember, It’s Ongoing!

The market is constantly changing. Regularly revisit your analysis to ensure your strategies remain relevant as the sleep tracker market and customer preferences evolve.

Market Opportunity Analysis Example

Scenario: Imagine you’re a company specializing in plant-based milk alternatives (e.g., soy milk, almond milk). You’ve observed a rise in consumer interest in plant-based diets and wonder if there’s an opportunity in plant-based meat alternatives.

Potential Opportunities:   Plant-based burgers, sausages, chicken alternatives – the market is expanding.

Chosen Focus: Let’s focus on plant-based burger patties as a specific entry point.

Step 2: Market Research

Data Gathering: Conduct surveys with vegetarians, vegans, and flexitarians (people who sometimes eat meat) to understand their interest in plant-based burgers. Look at market research reports on the plant-based meat market size and growth projections.

Market Landscape: The plant-based meat market is rapidly growing, driven by health concerns, environmental considerations, and animal welfare issues.

Customer Needs and Pain Points:   Surveys might reveal a desire for plant-based burgers that taste more like real meat, have a satisfying texture, and are affordable and readily available.

Step 3: Competitive Analysis

The Competitors: Identify leading plant-based meat companies like Beyond Meat and Impossible Foods, as well as traditional meat companies entering the plant-based space.

Competitive Landscape: Existing plant-based burgers may be perceived as expensive or lacking the sizzle and texture of real burgers. Traditional meat companies might have wider distribution networks but lack brand recognition in the plant-based space.

Competitive Advantage: You could potentially offer a more affordable plant-based burger patty made with familiar ingredients and a focus on taste and texture, leveraging your expertise in plant-based milk alternatives.

Step 4: Opportunity Evaluation

Market Attractiveness: The plant-based meat market is projected for significant growth, indicating a potentially large and lucrative customer base.

Business Alignment:   Expanding into plant-based burgers aligns with your company’s focus on plant-based alternatives and leverages your existing knowledge of plant-based ingredients.

Resource Requirements:   Developing a new product line requires investment in research and development, potentially new manufacturing processes, and marketing efforts to reach the target audience.

Go or No-Go: Based on the analysis, you might decide to pursue the plant-based burger opportunity due to the promising market and alignment with your business goals.

Market Entry Strategy: Develop a plan outlining your burger’s taste profile, texture, pricing strategy (competitive but profitable), target audience (health-conscious consumers, flexitarians), marketing channels (social media, partnerships with vegetarian restaurants), and distribution strategy (grocery stores, online retailers).

How to Expedite and Optimize Market Opportunity Analysis

Prelaunch.com can prove to be a helpful tool at various stages of your market opportunity analysis, particularly in the areas of understanding customer needs and testing your product concept. Here’s how:

Understanding Customer Needs:

• Competitor Analysis: Prelaunch offers an AI-powered market research tool that analyzes customer reviews of existing products. This can reveal what customers love and hate about current offerings in the market you’re considering entering (e.g., plant-based burgers in the previous example). By understanding these pain points and unmet needs, you can tailor your product concept to address them directly.
• The platform also offers the option of conducting a focus group, not of random individuals but from a selected group of people who have signaled their purchase intent already by reservation. 

Testing Your Product Concept:

• Concept Validation:   One of Prelaunch’s strengths is its ability to test multiple variations of your product concept with different target audiences. This allows you to see which features resonate most with potential customers and which price points they’re receptive to. In the plant-based burger example, you could test different flavor profiles or patty textures to see which ones get the most positive feedback.
• Early Feedback:   By testing your concept on Prelaunch before fully developing the product, you can gather valuable early feedback that can inform your product development process. This can save you time and resources by helping you avoid costly mistakes and ensure you’re on the right track to meet customer needs.

Starting a business or growing an existing one is full of risks and choices. A market opportunity analysis provides a structured way to gauge the viability of a new venture. It’s about being proactive instead of reactive, and strategic instead of hasty.

By dedicating time and resources to this process, you arm yourself with the foresight necessary to make educated decisions and steer your enterprise toward prosperous seas. Remember, the more thorough your analysis, the clearer the path becomes.

Alice Ananian

Alice has over 8 years experience as a strong communicator and creative thinker. She enjoys helping companies refine their branding, deepen their values, and reach their intended audiences through language.

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Opportunity assessment presentation: A comprehensive guide

Discover the key steps involved, from identifying and evaluating opportunities.

Raja Bothra

Building presentations

Hey there, fellow knowledge-seekers!

Today, we're diving deep into the world of opportunity assessment presentations.

Have you ever wondered how some business presentations just seem to hit the bullseye, while others fall flat?

Well, the secret sauce often lies in a well-structured opportunity assessment presentation.

But what exactly is an opportunity assessment presentation? What are the different types, and why is it important? How can you structure one effectively? And what are the do's and don'ts? We've got all your questions covered.

So, grab your virtual notepads and let's embark on this educational journey!

What is opportunity assessment?

Opportunity assessment, a phrase that's become a cornerstone in the business world, is the systematic and data-driven process of identifying, evaluating, and prioritizing potential opportunities for growth or improvement within your industry or market. It's like embarking on a treasure hunt within the vast expanse of possibilities.

Taking cues from the wealth of knowledge on opportunity assessment, we can define it as follows:

Opportunity assessment is the process of identifying, evaluating, and prioritizing potential opportunities for growth or improvement. It is a critical step in any strategic planning process, helping businesses make informed decisions on how to allocate resources and invest their valuable time and effort.

The multi-dimensional nature of opportunity assessment ‍

Opportunity assessment isn't a one-size-fits-all concept. It can be conducted at various levels, from the individual to the organizational, to achieve a multitude of objectives. Here are some key dimensions:

1. Exploring new horizons: At its core, opportunity assessment serves as a compass for exploring new possibilities. It's about identifying fresh avenues for your business to thrive, whether that means venturing into uncharted markets, launching innovative products, forming strategic partnerships, or even streamlining your internal processes.

2. A structured approach: A successful opportunity assessment process is more than just brainstorming. It's a structured and methodical examination of potential growth areas. Imagine it as a treasure map with marked routes and signposts.

3. Evaluating the landscape: An opportunity assessment isn't just about casting a wide net and hoping for the best. It's a rigorous evaluation of your surroundings. Consider the size of the market, the competitive landscape, the necessary resources, and the potential return on investment. This phase is all about separating the gold from the gravel.

4. Setting priorities: In the world of opportunity assessment, not all opportunities are created equal. Some shine brighter, while others require a bit more polishing. Prioritization is the art of distinguishing the gems from the pebbles, helping businesses focus their resources on the opportunities most likely to lead to success.

Types of opportunity assessment

Now that we've established what opportunity assessment is, let's take a deep dive into its various facets. Just as the compass points in different directions, opportunity assessments can serve multiple purposes. Let's explore these diverse types:

1. Market opportunity assessment: In the realm of opportunity assessment presentations, a market opportunity assessment shines as a guiding star. This type of assessment is all about deciphering the intricate tapestry of current market dynamics, trends, and consumer behavior. It's akin to having a treasure map for your business, helping you understand where your product or service fits and how you can tap into unmet demands.

Imagine this presentation as a telescope, offering a closer look at your industry's constellations, helping you navigate through the vast expanse of the market.

2. Competitive analysis presentation: When you need to understand your place among the stars, a competitive analysis presentation comes into play. Here, you evaluate the strengths and weaknesses of your competitors, exploring their market share and positioning. It's like examining other ships on your treasure hunt, helping you strategize to gain a competitive edge.

Think of this presentation as a navigational chart, plotting the courses and destinations of your rivals.

3. New product or service assessment presentation: In the quest for buried treasure, you'll often stumble upon new ideas. To assess these potential gems, you need a new product or service assessment presentation. This type of presentation examines the feasibility and potential success of your new offerings. It's the crucial step of deciding whether to set sail with a new product or service or keep it in the treasure chest for another day.

Picture this presentation as a magnifying glass, revealing the brilliance and flaws of your precious findings.

4. Investment opportunity assessment presentation: For those in the business world who wield their calculators like swords, the investment opportunity assessment presentation is their holy grail. This type of assessment focuses on evaluating the potential return on investment (ROI) for a particular business opportunity. It's all about making informed decisions on where to invest your resources and embark on your treasure hunt.

Consider this presentation as a ledger, meticulously recording the potential gains and losses of your investments.

5. Business plan presentation: As you embark on your treasure hunt, you'll need a map that not only guides you but also convinces others to join the adventure. The business plan presentation is precisely that map. It communicates your company's business plan to potential investors or lenders. It includes a comprehensive description of your products or services, your target market, the competitive landscape, and financial projections. This presentation is the ultimate treasure map, providing a clear path to your financial goals.

Think of it as a captain's log, recording the journey, the treasures found, and the promising horizons yet to be explored.

In the world of opportunity assessment, each type of presentation serves a unique purpose, guiding businesses through uncharted waters. They are the tools of the trade, helping you navigate the vast sea of opportunities, seize the hidden treasures, and achieve business success.

Now, you might be thinking, "Great, I know what opportunity assessment is, but why is it so crucial?"

Why is opportunity assessment presentation important?

Opportunity assessment presentations are not just another set of words thrown around in the corporate world. They are the compass, the guiding light that illuminates the path forward for your business. Let's dig deeper into why this compass is so vital:

Minimizes risk : Risks are like hidden reefs beneath the surface. By conducting a thorough opportunity assessment, you're essentially sending out scouts to chart the waters before you set sail. This process reduces the risk of diving headfirst into an idea that might not work. It's your treasure map, revealing where the pitfalls and perils may lie, so you can navigate around them.

Focuses resources: Resources are like the crew on your ship. They're valuable, and you need to allocate them efficiently. Opportunity assessment helps you pinpoint the most promising destinations on your treasure hunt. It's like having a seasoned navigator on board, ensuring that you direct your crew and provisions to the places that promise the greatest rewards.

Innovation driver: Innovation is the wind in your sails, propelling your ship forward. Identifying new opportunities is the cornerstone of innovation and business growth. It's not just about doing what others have done; it's about charting new waters, discovering new lands, and pioneering unexplored territories. Opportunity assessment is your trusty telescope, allowing you to see beyond the horizon and pioneer new frontiers.

Competitive advantage : The business world is a vast sea filled with fellow treasure hunters. Your competitors are out there, searching for the same treasures you seek. What sets you apart? A well-executed opportunity assessment. It gives you the edge over competitors who may not be as thorough in their assessment. It's like having a star map that shows you the best routes and shortcuts, ensuring you reach the treasure before others do.

An opportunity assessment presentation is your anchor in the turbulent sea of business decisions. It's the ultimate tool for communicating the potential value of a new business opportunity to stakeholders. Whether you're trying to persuade investors to fund your expedition, convince customers to embrace your new product or service, or inform decision-makers about resource allocation, this presentation is your treasure chest of knowledge.

A well-crafted opportunity assessment presentation should:

• Clearly define the opportunity and explain why it's important, just like a captain explaining the significance of the treasure they're hunting.
• Identify the target market and how the opportunity will meet their needs, much like planning a voyage to a distant land to fulfill a specific purpose.
• Analyze the competitive landscape and explain how your approach differentiates you from the other treasure hunters, just as pirates plot their course to outwit their rivals.
• Outline the financial potential of the opportunity and the resources required to pursue it, akin to tallying the potential riches and the crew and supplies you'll need for your journey.
• Provide a clear call to action, explaining what stakeholders need to do next to support the opportunity, much like a ship's captain directing the crew on their tasks for a successful voyage.

An opportunity assessment presentation isn't just a business tool; it's your treasure map, your compass, and your anchor. It's the key to securing the support and excitement needed to embark on a successful treasure hunt and return with riches untold.

Now, let's roll out the opportunity assessment presentation carpet and see how you can structure one.

How to structure an opportunity assessment presentation

Creating an effective presentation is an art form. It's about conveying your insights and findings in a clear and compelling way. Here's a tried-and-true structure:

1. Title slide: Start with a presentation title that grabs attention. Don't forget to include your company logo.

2. Introduction: Set the stage by briefly explaining the purpose of the presentation.

3. Opportunity assessment overview: Provide an overview of what opportunity assessment is and its significance for your business.

4. Market analysis: In this section, delve into the market - its trends, size, and competition. Utilize PowerPoint slides to make data more visually appealing.

5. Product analysis: For a product opportunity assessment, this is where you present your idea. Use visual aids like PPT slides to depict the product's journey from concept to market.

6. Financial projections: Bring out the financial analysis. Use tables and diagrams to illustrate potential revenue and investment.

7. Competitive landscape: Highlight the competition. A good ol' SWOT analysis can work wonders here.

8. Risk assessment: No opportunity assessment is complete without assessing the risks involved. Create a clear and concise summary of potential obstacles.

9. Conclusion: Summarize your findings, including the most promising opportunities and key takeaways.

10. Q&A: Don't forget to leave room for questions and discussions.

11. Thank you slide: End on a polite note, thanking your audience for their time and attention.

Do’s and don'ts of an opportunity assessment presentation

Creating a top-notch presentation isn't just about what you should do; it's also about what you should avoid. Here's a quick checklist:

• Use graphics and icons to make data more digestible.
• Customize your opportunity assessment PPT template to match your brand identity.
• Focus on the opportunities rather than getting lost in details.
• Maintain a clear and logical structure.

Don't:

• Overload with text; keep it concise.
• Rush through the presentation; management of time is crucial.
• Neglect the competitive landscape; acknowledging your competition is a strength.
• Use jargon that might confuse your audience.

Summarizing key takeaways

• Opportunity assessment: It's a data-driven process for identifying and prioritizing growth opportunities.
• Types: There are different types, including market, competitive analysis, new product, investment, and business plan assessments.
• Importance: Opportunity assessment minimizes risk, focuses resources, drives innovation, and provides a competitive advantage.
• Structure: Follow a clear presentation structure, including an introduction, opportunity overview, analysis, projections, competition, and risk assessment.
• Do's: Use visuals, customize the presentation, stay focused, and maintain a logical structure.
• Don'ts: Avoid text overload, rushing, neglecting competition, and using confusing jargon.

1. What is an opportunity assessment presentation, and how can it benefit my startup?

An opportunity assessment presentation is a powerful tool for startup owners to evaluate and strategize their next steps. It's a dynamic powerpoint show that consists of multiple powerpoint presentation slides, complete with custom powerpoint templates that you can download. These templates provide a framework with editable elements, categorized according to the number of stages, making it easier for you to refine your strategy. The stages in this process help you review and assess your startup's potential and propose a method for future development.

2. How do I use the opportunity assessment powerpoint template for my product development?

The opportunity assessment powerpoint template is a valuable resource for product managers. It offers a strategic framework divided into stages, which is crucial for product development. The template helps you analyze market opportunities and manage the stages in this process efficiently. It includes graphic elements in the slide that can be easily customized and refined to match your specific needs. By selecting the four stages, you can create a structured plan to enter the market and refine the results.

Here is a comprehensive guide on product development plan presentation .

3. What makes the customizable opportunity assessment ppt template stand out from the rest?

The customizable opportunity assessment ppt template is a standout solution for startup owners and product managers alike. It provides a highly flexible opportunity assessment framework, categorized according to the number of divisions or graphic elements. This template makes it easier for you to select and refine the specific stages that suit your startup's needs. With this template, you can create a tailor-made opportunity assessment PowerPoint presentation that perfectly aligns with your vision and future trends in your industry.

4. How can powerpoint templates be used to improve the opportunity assessment presentation?

Powerpoint templates are an essential element in creating a visually appealing and informative opportunity assessment presentation. By using these templates, you can easily categorize and manage your content according to the number of stages. This makes it more understandable for your audience and helps you refine the results efficiently. Additionally, these templates often include editable elements, allowing you to customize the content to match your startup's unique solution and financial structure.

5. Why should I consider procurement and measure in my opportunity assessment presentation?

In your opportunity assessment presentation, procurement and measure are important elements to consider. Procurement means identifying the necessary resources to execute your plan effectively. Measuring progress and success is crucial in the four-piece puzzle slide of your opportunity assessment powerpoint deck, as it helps you assess your startup's development and make informed decisions about refining your strategy. These elements play a significant role in ensuring the success of your startup in the ever-changing business landscape.

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How to Conduct a Market Opportunity Analysis

Published: May 06, 2021

I have most of my best ideas at 3:00 AM or in the shower. But turning those shower ideas into a business opportunity requires further investigation. That’s where market opportunity analysis comes in.

While you and your team may have many new business ideas you want to explore, you don’t have time to head down every path. Some of those paths may even end up being dead-ends.

How do you choose which ideas to pursue, and which ones to let go of? Market opportunity analysis can help you narrow down your options to the ones with the greatest potential.

What is market opportunity analysis?

Market opportunity analysis is the process of researching where and how you can reach more potential clients or grow your revenue share. It involves identifying competitions, understanding your audience, and uncovering potential risks. By doing a market opportunity analysis, you’ll be able to prioritize new business ideas based on how potentially profitable and risky they are.

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Who should conduct a market opportunity analysis?

That answer is, " everyone." All sizes of organizations will benefit from better understanding the industry in which they’re operating or approaching. Whether you work in B2B, B2C, government, or non-profit organizations, defining and analyzing the market will help you make better decisions.

This kind of analysis can help you grow your existing business, pivot into new markets and opportunities, or expand into the periphery of your current market.

5 Benefits of A Market Opportunity Analysis

• Make better long-term strategic decisions.
• Evaluate product or service demand.
• Identify potential marketing strategies.
• Uncover areas for further research.
• Identify and navigate potential roadblocks.

There are many reasons to take the time and examine the full range of options before forging ahead. Here are five important benefits you’ll get from market analysis.

1. Make better long-term strategic decisions.

Your business is impacted by many external factors. Without taking the time to examine the current market trends, you’ll be flying blind.

A market opportunity analysis can provide the insight you need to see into the future. What will the market look like in a year? Five years? 10 years? What forces are acting on the market today? How is the demographic of your target audience shifting?

2. Evaluate product or service demand.

You may have invented the next Google Glass : a great product with tough, niche demand. A market assessment will show the potential for selling your product or service. This analysis will help you evaluate if expanding into a potential new market is worthwhile for your company.

You may find that there is no existing market for your idea, leading to a “ Blue Ocean Strategy. ” “Blue oceans,” explain authors W. Chan Kim and Renee Mauborgne , “denote all the industries not in existence today — the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid.”

While that might be the case, you might also fail to create the market, or need to spend time and energy educating customers on the value of your new idea.

3. Identify potential marketing strategies.

The four P’s of your marketing mix are price, place, product, and promotion. Through the process of a market opportunity analysis, organizations can gain a deeper understanding of who their target customers are, what they want, and how they make their decisions.

After assessing the current market, you’ll be able to price your product effectively and know which promotion strategies will work best. Are there partnerships you should pursue? Will direct sales or inbound marketing work best ?

4. Uncover areas for further research.

When you start to better understand the market, you may identify even more new opportunities to explore. As the saying goes, “You don’t know what you don’t know.” You may discover a new government initiative that encourages sustainable businesses.

A customer research project may identify a new pain point that you didn’t realize existed. The benefit of knowing your marketplace really deeply is that you’ll be ready to leverage any new opportunities that pop up.

5. Identify and navigate potential roadblocks.

A SWOT analysis looks at the strengths, weaknesses, opportunities, and threats of a potential strategy. Identifying the weaknesses and the threats to your market opportunity is key to your success. No business idea is perfect. But knowing where you might run into trouble before you even begin can help you plan ahead and mitigate those risks.

Examples of Market Opportunity Analysis

Before we get into the step-by-step instructions of how to do your own analysis, let’s look at the results of two very different case studies. The purpose of both of these research projects was to identify new opportunities, however, they were done in two different industries: elderly care options and the automotive industry.

1. Say Yeah! ElderCare Case Study

Consulting agency Say Yeah! conducted a market opportunity analysis for a company looking to expand its business model into the elderly care industry. They started by mapping the customer journey for an adult child caring for their elderly parent, along with all the decision points they encounter.

By examining market forces — such as government subsidies, the changing demographics, and all the options older adults have — Say Yeah! was able to uncover several different options by which ElderCare could increase their profits.

Notably, they recommended ElderCare expand its referral business to include retirement homes, in-home care, and other social services.

“Their initial business premise is validated: by shifting the industry to a subscription-based model, led by an online marketplace, this business could carve out a significant piece of profit in the elder care industry by providing far more value to retirement homes at less cost.”

Image source

2. Ipsos Business Consulting Automotive Case Study

A global automotive conglomerate was interested in the growing electronic vehicle (EV) market, specifically three-wheelers in India. Ipsos conducted a study of the EV market through customer interviews, business model analysis, and government research. At the end of the study, they provided recommendations around charging station locations, leasing vs purchasing options, and other infrastructure requirements.

How To Conduct a Market Opportunity Assessment

1. identify potential opportunities..

Your first step is to lay out the potential opportunities you want to investigate. What segment are you hoping to expand into? What type of customer are you hoping to attract? Are you looking to acquire or partner with another business? Have current events created a potential opportunity?

Knowing whether you want to expand, pivot, invest, create, or reposition your offerings will inform the next steps of your market research.

Once you’ve identified market opportunities, you’re ready to start researching their potential.

2. Understand the customer.

In every opportunity, the customer will inform your success. Does this product meet their needs? Do they have the purchasing power to make this idea profitable? How do they make their purchasing decisions? The second step in the analysis is to really, deeply understand your potential customers and their needs. This research may include any of the following tools:

• Customer interviews
• Customer journey map
• Demographic data

3. Research competitors.

Next, you’ll want to understand who all the players in the existing market are. Competitor research can help you understand how big the market share is, how existing products are positioned in the market, and how crowded the market is. Here are some questions you might want to ask:

• What is their value proposition?
• How is their product offering different from ours?
• Who are their partners?
• What do their reviews say about their product or service?
• Are there any gaps we could fill?
• How likely are new competitors?

4. Consider external factors.

External factors are always shaping and changing the marketplace. The acronym “STEEP” can help us dive into the five main forces we need to be aware of.

How is culture changing the market? For example, more employees working from home during the pandemic has opened up an entire sector of the market that didn’t exist before. Jumping on trends can be a lucrative strategy unless the trends disappear too quickly.

What new innovations have influenced the market? Can you apply this technology in other ways or in new industries?

What is the current economic climate like? Will you be able to get a loan if needed? Do your customers have disposable income? How does the market forecast look for the next year? Five years?

What impact does this idea have on the environment? Can you improve the sustainability of the product or service?

You may be pleasantly surprised to learn that your local government is offering grants, tax breaks, or other incentives for businesses in your industry. Alternatively, you may find that there are regulatory roadblocks in your way that you’ll need to account for in your analysis.

5. Be aware of internal forces.

Finally, dive into your own business’ capabilities. Do you have the skills, workforce, technology, and financial resources to invest in a new product? If you’re launching a very innovative product, are you going to be able to hire people with the necessary skills? What new departments or teams will you need to create to manage this new opportunity?

Make better decisions with market opportunity analysis.

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Opportunity Analysis: Definition and How To Conduct Market Opportunity Analysis

• Written by Lyle Del Vecchio
• 15 min read

Part of staying relevant is to continuously generate new ideas.

But, since there are only 24 hours in a day, it’s not possible to explore each of them to see what works best.

While an idea may seem good in theory, the reality is that it may end up being nothing. So, how do you choose which ideas to explore and which ones to skip over?

That’s where market opportunity analysis comes in.

With a bit of research, you can narrow down the options worth pursuing so you are not approaching things randomly.

What is Market Opportunity Analysis?

A market opportunity analysis, also known as an opportunity assessment, refers to the process of researching how and where you can connect with more potential clients and grow your revenue share.

It involves finding competitors, understanding your audience, and discovering the potential risks.

Through conducting a market opportunity analysis, you’ll be able to prioritize your new business ideas based on how profitable and risky they may be.

No organization is too small to benefit from the market opportunity analysis exercise.

Whether you’re a startup or a Fortune 500 company, all organizations benefit from increasing their understanding of the industry they are approaching or already operating in. Whether you’re in a B2C, B2B, government, or nonprofit business, defining and analyzing your market helps make better business decisions.

The analysis can help you expand your existing business with new product development, additional product lines, pivot into new opportunities and markets, or reach new aspects of your current market.

This might include analyzing the expansion benefits of vertical or horizontal integration.

Benefits of a Market Opportunity Analysis

There are multiple reasons to spend time looking at all of your options before moving ahead.

Let’s look at five key benefits you’ll get from a market analysis.

Make Better Long-Term Strategic Business Decisions

Many external factors impact your business.

Unless you take the time to examine the current market trends, you’ll be flying blind, which is a recipe for disaster.

With a market opportunity analysis, you can get insight all for seeing into the future.

You’ll get an idea of what the target market could look like in a year, five years, and 10 years.

You can determine what forces are influencing the market today and how the demographic of your target audience is shifting.

Evaluate Product or Service Demand

You could have invented a great product, but if the market is niche and tough, it can be hard to move forward.

A market assessment gives you an idea of how easily you can sell your product or service.

It will help you determine if it makes sense to expand into a new market.

If you find that there is no existing market for your idea, that doesn’t mean it’s not worth pursuing, necessarily.

That means you’ll be dealing with a Blue Ocean Strategy.

This approach acknowledges that many industries don’t exist today.

In this situation, the market space is unknown and untainted by competition.

In a blue ocean, you create demand, rather than fight for.

There is plenty of room for fast, profitable growth.

It’s worth noting in this situation that it’s also possible you’ll fail to create the market.

Even if you do create the market demand, you’ll need to direct effort to educate customers about your new idea, which is another reason why strategic planning is so important.

Find Potential Marketing Strategies

Here’s where the four Ps come into place:

With a market opportunity analysis, your company learns more about who your target customers are, what they want, and how they make their purchasing decisions.

After reviewing the current market data, you’ll be able to price your product at a point where customers will buy it and produce a profit. You’ll know the promotional strategies that will work, along with partnerships you should pursue.

Is direct sales the answer? Or will inbound marketing make more sense?

Discover Areas for More Research

Once you have a better understanding of your market, you may discover additional new market opportunities worth investigating and investing in.

You don’t know, what you don’t know.

A customer research initiative may reveal a new pain point that you weren’t aware of before.

The deeper you know your market, the better able you’ll be to leverage new opportunities that arise over the course of a changing business environment.

Find and Plan for Potential Roadblocks

Part of a market opportunity analysis is conducting a SWOT analysis.

SWOT looks at the strengths, weaknesses, opportunities, and threats associated with a potential strategy.

There is no such thing as a perfect business idea.

The key to success is knowing where you might run into issues before you get started, so you can get ahead of them and take action to mitigate and reduce the impact of those risks.

Not every business opportunity is worth trying. No matter your business model or how much market share is up for grabs, a market opportunity analysis ensures that you’re focusing your attention on the right things.

How to Conduct a Market Opportunity Analysis of Your Own

Step one: identify potential opportunities.

The first step is to determine all of the potential opportunities you want to look into. What segment do you want to expand?

What kind of customer are you hoping to attract? Are you looking to acquire another business or partner with another business? Are current events creating a potential opportunity?

Knowing whether you want to pivot, expand, create, invest, or reposition you’re offering helps to inform the next steps of your market research.

After you’ve identified your market opportunities, it’s time to start researching their potential.

Step Two: Understand Your Target Customers

In all opportunities, the customers inform your success. Does the product meet their needs? does the customer have the purchasing power to make your idea profitable?

How do they make their purchasing decisions?

In the second step of your analysis, you seek to deeply understand your potential customers and what they need.

You conduct this part of your market opportunity and now Asus with a variety of tools including:

• Customer interviews
• Demographic information
• Customer journey maps

Step Three: Research the Competition

At this stage, you need to understand who all the current players in the market are.

Competitor research helps you don’t understand how big the markets are is and how existing products are positioned in the market.

You’ll also see how crowded the current market is.

A competitive analysis examines who the major players are, so you can develop a plan to compete with them once you enter the market.

Ask questions like:

• What is the value proposition?
• How is their product offering different from what we are bringing to the market?
• Who are their partners?
• What do reviews say about the products and services they offer?
• What are people saying on social media?
• What gaps could we fill?
• How likely is it that new competitors are also entering the market?

Step Four: Consider External Factors

A number of external environment factors always shape and change the marketplace.

Use the acronym STEEP to help you remember the five main forces to consider as you make your plans.

Social factors examine how culture is changing the current market.

For instance, as a result of the pandemic, more employees are working from home. This opened up a sector of the market that didn’t exist before.

Jumping on trends may be a lucrative strategy unless the trends may disappear quickly.

Technical factors examine what new Innovations have influenced the market.

Are there new technologies or advancements that you can apply or new ways to apply the technology?

Economic factors examine what the current economic climate is like. Are you able to get a loan if you need it?

Do your target customers have disposable income? What does the market potential look like for the next 12 months?

The next five years? Economic factors can negatively affect the supply chain, as we’ve seen with the pandemic.

How will your business growth be affected if your supply chain falters?

What impact does your business idea have on the environment?

Other ways you can improve the sustainability of your product or service?

Does the sustainability of your idea qualify you for assistance from government grants for other programs aimed at protecting the planet?

The political climate could positively or negatively affect your business ideas.

For example, you may be surprised to learn that your local or state government offers tax breaks, grants, or other incentives for businesses in your industry.

At the other end of the spectrum, you may find that their regulatory issues you need to account for in your analysis.

Answering these questions can give you a competitive advantage as you deal with market fluctuations.

Step Five: Consider Internal Factors

In the final step of your market opportunity analysis, you must take a close look at your own business’s capability.

Do you have the technology, Financial Resources, Workforce, and skill to invest in a new product or service?

If you are launching something Innovative, will you be able to hire people with the necessary skills?

Are there new teams or departments you’ll need to create an order to manage this opportunity? What other costs are associated with bringing this idea into reality?

Make Better Decisions

Not every idea is worth seeing through to the end.

However, many are and it is because of Market opportunity analysis that you’ll be able to learn the business strategies that will help you grow.

It’s crucial that you do your homework before you want your next product or service.

Otherwise, you may find yourself dealing with Investments that will pay off in the long run.

Once you have an analysis that demonstrates an idea is worth following, move forward with creating a business plan.

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7 Ways to Perform Market Opportunity Assessment

There are lots of factors that can impact a business. Things such as economic, social, political, ecological, and technological changes can influence how companies progress. Marketers and business owners should always study and assess the ever-changing market trends to get a better understanding of what the customers need.

What Is Market Opportunity Assessment?

Marketing opportunity assessment is defined as taking a deeper look at the current state of a market to find out whether there is room to introduce new products, attract new consumers, and improve the overall business strategy to achieve and maintain growth within the company. Simply put, marketing opportunity analysis expounds on the prospective size of a business’s sales and market.

Which Organizations Need to Perform Market Opportunity Assessments?

All types of businesses and organizations can benefit from performing a market opportunity analysis. Whether you own a start-up , a medium-sized, or a large-scale business, the insights gained will be invaluable.

Both B2Bs and B2Cs should also take advantage of market assessments. A good market audit will help companies tailor their strategies based on the data that they collect. This, in turn, will help entrepreneurs and marketers reach out to their audiences better by giving them exactly what they need.

Here are several possible ways to perform a thorough market opportunity assessment for your business:

Take a Good Look at the Market Profitability

There are three things that you need to pay attention to when it comes to determining market profitability:

• See if your consumers are open to spending their money on the products and services that you offer.
• Research if the market that you are going into shows signs of steady growth.
• Lastly, know the estimated amount of customers you can attract.

Doing ample research, segmenting your audience , and creating personas can help you answer these questions.

Here are a few ways to gather data about your target market:

1. Use social media . Social media platforms such as Facebook can help you determine the size of the demographic group that you are trying to target.

To get an idea of which audience group you are attracting the most, go for paid ads. The results will give you an insight into the age bracket of the people that are engaging with your ads. You can also see other useful details such as their location and gender.

Additionally, you can also use LinkedIn if you are trying to target professionals within the same industry as you.

2. Market research statistics and reports. You can find lots of websites that focus on reporting statistics and data based on detailed market research. These studies usually include the size of the market that your business belongs to and how much the industry is worth annually. Surveys and industry reports can also be found online.

3. Turn to online resources provided by government agencies. Visit your local government agencies’ websites and see if they have any data that can be useful to your business. Just make sure they are relevant to the industry that you are in.

Set and Segment Your Targets to Assess Market Opportunities

Whether you are selling to a global brand or you cater to a smaller niche, you still have to implement customer segmentation into your strategy. Different customers have different needs. Therefore, getting to know your target personas can help you segment and personalize your messages.

The proper way to segment your audience is to send out surveys and track buying behavior. Then, create multiple personas and personalize your ads for each one. This way, you will have a better chance of your viewers engaging with your ads.

Creating personas will also help you define a specific and relative market strategy. And don’t forget that this is not a one-time task. You need to monitor your ideal customer personas every few months if you want to be up-to-date with the latest market trends and not miss out on opportunities. Setting and segmenting your targets will not only help you determine how to cater to your current consumers better but will also give you a better understanding of your demand in the marketplace.

Look Out for Similar Market Opportunities

Keep your opportunities open by looking out for similar business ideas. This doesn’t have to be done right away, but it is important and is something that should be seriously considered.

Growing your company and adding a similar project can help expand your audience, thus leading to increased sales and conversions.

Be Aware of Your Competitors

Analyzing your competitors is always a must when it comes to market opportunity assessment. This will help you gauge whether the demand for the products and services that you are offering is high or low. Know who your competitors are by doing a simple search on Google or on social media platforms. Take note of their strengths and weaknesses and find ways to outdo them.

Additionally, you can also see who their customers are. Take a look at the comments on their posts so you’d know the demographics that you need to consider targeting.

There are two types of competitors that you can analyze:

• Direct competitors. These are businesses that are similar to yours – the ones that offer the same exact products and services that you do.
• Indirect competitors. These are companies that do not exactly offer the same products and services, but their brand can indirectly affect yours. They often provide items that are complementary to your business.

Keep tabs on both direct and indirect competitors so you can always be one step ahead of them.

Perform Purchasing Analysis for Market Opportunity Assessment

Keeping track of your consumers’ purchasing analysis can help you set your pricing. If you price your products and services too high, then chances are your customers will be turned off by this. However, if you price them too low, then your potential leads will probably think that your items are of low quality.

Dive into your potential clients’ buying behaviors and what their patterns are when it comes to buying products similar to yours. Know how much they are willing to pay and what qualities they are looking for in a product.

There are four types of buying behaviors:

• Complex buying behavior – This type of behavior is the one used by customers when they are making a bigger purchase. Say, a client is buying a house or a car. They will take bigger considerations into place, as these decisions will greatly affect their lives.
• Habitual buying behavior – A buying behavior becomes habitual when a person buys an item over and over again. These items usually include essentials such as food, toiletries, and more.
• Variety buying behavior – These people are usually the ones who are open to trying new things. They are on the lookout for products and services that can add value to their lives and thus, they continue to buy different items to try.
• Dissonance-reducing buying behavior – This type of behavior is usually displayed by buyers who are hesitant about buying certain products and services. They are afraid that they might regret buying an item, which can make them doubt their purchase.

Execute Environmental Assessment

As we have mentioned, environmental changes can occur in businesses. Recession and climate change are two huge factors to consider when performing market opportunity assessments, as these can directly affect your business.

There are two ways to perform environmental assessments :

• Internal environment assessment – This involves analyzing factors that can directly impact your business. It includes additional technological developments, cultural changes, and new employees or management teams.
• External environment assessment – This affects not the business itself, but the customers that you are dealing with. It comprises additional laws, seasonality, technical changes, and more.

Doing thorough research on environmental factors can help you decide what to tweak in your strategy.

Do Lots of Testing

The last thing that you should do is perform testing on your market opportunity analysis. Implementing the methods above is just the start of your journey – maintaining it should be a major priority.

Here are ways to go about the process:

1. Review your data. This will help you see how many clients you have obtained and how much they’ve bought in the overall sales. Perform these checks regularly and keep up with the trends.

2. Perform a test launch. If you are launching a new product, service, or even a brand-new business, then it pays to run a test launch . This will give you insight into what you should change so you can avoid any mishaps during the actual launch.

Keep your audience involved by sending them promotional ads through emails and setting up a landing page . You can also post on social media to keep the anticipation high. Take a look at the engagement and sign-up rates to see if your current strategy is worth pushing forward. If the numbers are low, then go back to the drawing board and consider tweaking some of your ideas.

3. Look for feedback. There is nothing wrong with asking for a little bit of help from your peers. Look for entrepreneurs who have been in the industry for a long time (preferably five years or more) and seek their advice. Discuss your plan and how you’ve come up with it. Ask them if they think it will be effective or if you need to change it up. These pioneers have been in the business for a while and they’ve most likely seen what works and what doesn’t.

Being prepared and well-researched with your marketing strategy will surely pay off. Putting up a business is not just a one-and-done deal, as you have to take so many things into consideration. As we have mentioned above: execute testing, assess the environmental factors, do purchasing analysis, know your competitors, seek similar opportunities, segment your audience, and perform market profitability to leverage your business. Let us know which ones of these tactics work for you!

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What is a market opportunity assessment?

Market opportunity assessment, what it is and the growth strategies taken by some household name brands..

A market opportunity assessment is the process of synthesising bespoke research and client data to identify opportunities for growth in a specific market or business area and formulate an actionable strategy to realise this growth.

Opportunities come in many different shapes and sizes. Therefore the pivotal first step towards success is to identify them. Maximising opportunities in a constantly shifting environment and market requires a creative, flexible and methodical approach. Few organisations – no matter whether they are start-ups or corporations – have the time, the resources or the expertise to conduct a broad and thorough market opportunity assessment.

A market assessment will utilise a pragmatic approach that is tailored specifically to the client and the market they operate in, while leveraging tried and trusted research and analysis methodologies.

What kind of organisations should undertake market opportunity assessments?

Market opportunity assessments can (and should) be conducted by all organisations. Any organisation can benefit from identifying opportunities of where and how they can grow their reach and client base.

A good market opportunity assessment is always tailored to the needs and goals of an organisation. It aims to provide as much objective data as possible to verify or signpost growth strategies with the greatest potential. Additionally, when market opportunity assessments include an audience research component and strategic analysis, they will not only identify growth opportunities, but also provide a detailed roadmap of how to achieve these.

What type of market opportunities are there?

• Grow the existing business
• Create new business(es)
• Grow the reach of existing business
• Pivoting during crisis

Although expanding the business is the aim of most organisations, it can be challenging to identify the best strategy to achieve this while sustaining current success.

Market opportunity assessments lay the foundation to identify growth with the highest ROI (return on investment), whether that is through a single opportunity or several.

1. Grow existing business

This is the most straightforward type of growth; relying on a sound understanding of an organisation’s market, customers and competition to identify the areas where an organisation’s prospective growth is well-placed to succeed and the strategy to realise it. This growth may come in the form of an increase in market share, a shift in pricing or geographical expansion.

For example, a market opportunity assessment could identify the locations and merge & acquisition targets for a successful expansion. This research also succeeds in highlighting consumer pain points and competitor performance issues for a gain in market share. On the other spectrum, the assessment can uncover customer needs and behaviours as well as the messaging for a change in pricing that increases margins.

Case Study: Starbucks’ growth strategy

Over the last 5 years Starbucks has leveraged a number of strategies to continue driving growth within their existing, core business. They have achieved this by creating digital initiatives, introducing a new loyalty scheme and continued physical expansion – all underpinned by market and customer research insights. In this way, Starbucks has successfully managed to grow global sales by ~3% and revenue by ~10% year on year in an incredibly saturated market.

Case Study: Lidl’s growth strategy

Lidl’s fast and successful expansion across Europe over recent years, driven by a combination of fierce discounting, effective marketing and an exceptional understanding of their market, is a perfect example of geographical growth. Lidl has done this through optimising its entire operation to be scalable and making strategic decisions based on granular and high quality insights. At times this has meant doing things differently. Employees are paid a comparably high salary for the retail industry, but have to meet specific performance indicators. In 2017 Lidl’s international operations represented over half of their total revenue with sales of €46 billion and had grown by ~11% per annum since 2012.

2. Create new Business (es)

Growth can be achieved by diversifying and offering new products and services (connected or unconnected to the existing business). Such growth can, for example, be realised by entering uncontested markets ( Blue Ocean Strategy  ) or through the merger or acquisition of other businesses.

This approach can also ensure a significant diversification of an organisation’s revenue. It has the added benefit of increasing the organisation’s longer-term resilience by limiting revenue exposure to changes in demand for products and services. Typically, this is also the most investment heavy and highest-risk growth, as bringing a product to market or purchasing another business usually requires a sizable outlay, which sometimes fails to provide a return .

Key to success is a thorough market opportunity assessment that formulates a detailed business strategy for the new product or service. Market opportunity assessments can provide a detailed model and projections in various economic scenarios to quantify the likelihood and rate of returns, as well as detailed roadmaps for marketing strategies, prime M&A targets and flag any major risks (e.g., due diligence).

Case Study: IBM’s growth strategy

In 2010 IBM began a three-year buying spree, driven by an aggressive M&A growth strategy. During this time IBM acquired 43 companies, with each acquisition costing an average of 350 million USD. By integrating and pushing the offering of these companies though their existing, global sales channels, IBM was able to significantly accelerate the acquired companies’ revenues – sometimes by nearly 50% within the first two years of the acquisition.

Case Study: Procter & Gamble’s growth strategy

 The merger of Proctor & Gamble with Gillette in 2005, is a perfect example of growth through a multi-facetted M&A strategy. This merger not only made them the largest consumer goods business in the world, knocking Unilever off its top spot, but also added a number of new products to their portfolio, while also driving global operational and sales growth. As it so happened, Gillette’s and Procter & Gamble’s existing global sales structures complemented each other; Gillette being stronger and better set-up in some markets than Procter & Gamble and vice versa. By combining and leveraging these existing operations and sales channels, Procter & Gamble drove a 25% net sales growth in 2006 .

Case study: BMW’s growth strategy

In 2011 BWM launched the car-sharing business DriveNow. Since then, it has grown its operation across 31 cities throughout 14 countries with more than 4 million users. Early 2019, BMW established its service as the market leader through a merger with Daimler’s Car2Go and a rebranding to ShareNow. While the car-sharing model is still in its infancy and profitability requires scale, BMW and Daimler sees this new business as an investment the urban mobility market of the future and have invested €1 billion into developing multi-modal mobility as a service (MaaS) platforms

3. Grow the periphery/ancillary of existing business

With this approach, businesses can achieve growth by identifying value on the edge of existing business ( Edge Strategy ). This type of growth may come in the form of monetising the existing offering differently, offering variations of current products and services, or creating ancillary offerings.

The aim is to leverage the existing investment in a creative way to minimise risk and maximise ROI for future growth, and thereby maximising potential profits. The identification of edge-opportunities depends on a deep understanding of the market/industry as a whole, the needs and behaviour of the organisation’s customers, as well as the value of the business’s existing offering and assets.

Case study: Amazon’s growth strategy

A significant part of Amazon’s meteoric growth over the last decade is driven by the way it has monetised the periphery of its business. In fact, Amazon’s success is a great example for Edge Strategy [TM] growth: Founded in 1994 as a bookselling website, it is now an e-commerce giant with over 300 million users and worth more than $800 billion USD. While more recent growth has been acquisition-based, the early transition from an online bookstore to general marketplace, as well as their current digital assistant, Alexa, are great examples of successful peripheral growth. Alexa is expected to generate around $19 billion of sales revenue (~5% of Amazon’s total revenue) by 2021.

4. Pivoting during crisis

In early 2020 the process were being redefined quickly due to the Coronavirus pandemic. This meant going back to basics, defining what companies were good at and spotting the signals of the market changes that could be used.

What does a market opportunity assessment entail?

A market opportunity assessment, like all strategic support, is tailored to the specific circumstances, industries, reach, etc. of each client, and can entail all or a mixture of the following elements

Research Methodology Elements: How do you conduct a market opportunity assessment?

The type of research used to identify and evaluate these market opportunities and their various elements breaks into two segments: primary and secondary research. Typically, most market assessments will employ a combination of these two insight generation methodologies.

Primary research:

Qualitative research 

o   F2F

o   Focus groups

o   Tele-depths: – Sessions can be recorded/viewed by client. Possibility to create montages for presentation, internal training or other purposes – Can be used to gain a very broad understanding of a subject (markets, customers, etc.)

Quantitative research

o   Surveys (online, phone): Closed questions, targeted objective (validate specific hypotheses, etc.)

o   Existing client data analysis

Secondary research:  

o   Desk research

o   Tapping into reputable sources to collect: – Data – Relevant research/reports conducted recently – Articles / industry publications to provide colour and underpin things like trends/drivers

The questions to ask yourself to see if you should conduct market opportunity research

Are we basing our current and long-term strategic decisions on objective data?

Are we confident that we are not missing out on market opportunities?

Is my organisation currently facing a challenging market?

These are the questions any organisation should consider. A market opportunity assessment can help with all of these. It provides hard and objective data to underpin strategic decisions, identifies and quantifies new opportunities and creates growth in challenging business environments. As market opportunity assessments are always bespoke and can be as broad or as specific as a client needs them to be, they not only fit every budget but also add direct and significant value to any organisation.

If you have any questions or wonder whether a market opportunity assessment may help you and your organisation, please get in touch. We’re always happy to hold discussions to see how we might be able to help. Also don’t worry – for us, a market opportunity assessment has to add specific and actionable value, so during our initial discussion we will be honest and clear about how we can or can’t help you.

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Product Management

How to Do Product Opportunity Assessment (+ Questions & Examples)

Content Writer

Created on:

June 5, 2024

Updated on:

10 mins read

Transform Insights into Impact

Build Products That Drive Revenue and Delight Customers!

According to research, 35% of startups failed because of the lack of market need for their product or service . This is easily preventable by spending some time on product opportunity assessment before investing time and money in building a new product.

The more time you spend on opportunity assessment and the product discovery phase, the higher the chances you'll create a successful product that your target audience will enjoy using.

In this article, we'll guide you through the whole process, providing actionable tips and everything you need to consider.

What is product opportunity assessment?

Product opportunity assessment is an evaluation process that companies use to identify and analyze market gaps and discover unmet customer needs, which can lead to the development of a new product.

This process has different phases, including analyzing users and their behavior, competitors and market trends to determine the feasibility and potential success of the new product idea.

Assessing product opportunities helps you create products that customers want and need, preventing you from wasting time and money in the long run because you won't be using your resources on products with low chances of success.

How to do a product opportunity assessment

There are different frameworks and methodologies that you can use, but it's essential to include the following five steps in the given order.

Conduct user and competitor research

Choosing the user research method will depend on whether you already have clients using your existing products or starting from scratch.

The goal is always the same: you want to discover their pain points, desires, and problems that don't have an adequate solution yet.

• In the first case, you need to collect their feedback, and there are various ways to do so. From sending them questionnaires to arranging calls or strategically placing quick surveys for them to fill out before leaving your app. Read this article to learn how to collect customer feedback in 13 different ways.
• If you don't have a customer base, create your user persona and try to identify where your target audience hangs out. You can find them on forums, online groups, LinkedIn etc. Conduct interviews or even organize focus groups, but if you're looking for something faster and cheaper, you can ask them to fill out surveys, maybe offering some incentive or discount in return.

Here are key product survey questions that you don't want to overlook.

How can you streamline this process? Zeda.io is a customer feedback-management platform that allows you to capture and analyze feedback from different channels in one place and discover recurring themes and problems.

With the help of AI, we help you transform customer insights into actionable steps that will help you decide what product to build next.

Now, here are a few tips on competitor research :

• Start by identifying key competitors in your target market, both direct and indirect.
• Analyze their product offerings by examining features and price-quality ratio.
• You can do a SWOT analysis for each competitor to identify strategic opportunities or benchmark their products.
• Try to identify any gaps, problems they're not solving, features that are missing or could be improved.
• Analyze their positioning and branding. Study their website and social media and read user reviews.

Determine your value proposition

Your unique value proposition is a factor that makes you stand out from other companies in a highly competitive landscape and convinces your clients to choose you over other solutions.

What is the thing that sets your product apart from other similar products?

• Does it solve a unique customer problem that hasn't been addressed yet?
• Is it ideal for a particular segment of your target market?
• Do you offer some additional features that other products don't?
• Can you solve that problem faster/easier/more efficiently?

Do this thoroughly because a compelling value proposition lays the foundation for a successful product launch and all future marketing campaigns.

However, value proposition is not just a marketing strategy, it's much more than that. Product management is all about creating value for your users , and everything else starts from there.

Consider external and internal factors

When conducting a product opportunity assessment, it's crucial to consider a range of factors that could influence your decision.

The following internal factors are critical to success:

• Resources – Conduct a realistic assessment of the following resources to see whether your company has the means to develop the desired product: human capital, their skills, technologies available and your budget.
• Company goals – Is this product aligned with your long-term goals and vision? If not, it could slow down your progress and compromise success in the long run.
• Customer feedback – Does this product idea align with what your current customers want and need?

Of course, you mustn't underestimate the external factors. You may not be able to control them, but at least you can do your best to assess and anticipate them.

These external factors are critical for success:

• Market trends – Analyze current and emerging industry trends that may impact your product’s potential success.
• Economic conditions – Evaluate macroeconomic and microeconomic factors that could influence the market: inflation, purchasing power, interest rates etc.
• Laws and regulations – Check the regulatory requirements and compliance issues affecting your product.
• Competitors – Examine your competitors and find out what's their market share.
• Technology – Consider whether technological advancements in the near future may affect your product’s competitiveness.

Use prioritization frameworks

Prioritization frameworks are an essential part of the product discovery process. They allow you to maximize impact by focusing on what truly matters and prioritizing features that can make the biggest difference to customers.

Here are the most popular ones:

• RICE scoring model – This framework has four components: Reach, Impact, Confidence and Effort. You measure each feature on a scale of 1-10 and then use a formula to determine which one you should focus on first.
• ICE scoring model – This framework is similar to the previous one, but it focuses most on identifying high-impact tasks that you can do with relatively low effort.
• Kano prioritization model – This framework classifies initiatives into different categories based on how they'll affect your customers (from delighting them to neutral and even negative impact).
• MoSCoW analysis – This framework allows you to classify features into four categories: must-have, should-have, could-have and won't-have.
• Impact mapping – Impact maps are a great way to visualize multi-level diagrams to help you understand the bigger picture.
• Impact/Effort matrix – This framework is great for boosting efficiency when you want to maximize the positive impact of your efforts.
• Value/Effort – This is the best framework for identifying high-value, low-effort business opportunities.

Our platform, Zeda.io, allows you to choose between RICE and the Value Effort framework. If neither works for you, you can always set up your own customized prioritization framework.

Test your idea

Now that you've decided on one particular idea, it's time to test it before developing it.

• Create a prototype: Rapid prototyping has many benefits , from reducing costs and gathering real user feedback to mitigating risks associated with launching a new product. Remember that a prototype doesn't need to be a fully functional product, but it should showcase your product features and functionalities.
• Conduct user testing: You can then ask your target group to test the prototype and give their feedback. Observe how they interact with it and pay close attention to whether there are any usability issues or improvements needed.
• Create an MVP: If your product idea passes the initial test, you can develop a Minimum Viable Product (MVP), a scaled-down version with only essential features. Launch your MVP to a limited audience to test user engagement and satisfaction.

This article will help you understand how to get feedback for an early-stage product .

The final step is – to iterate and improve. Now that you've gathered enough user insights and validated your idea, it's time to consider necessary improvements.

In a recent study, 55% of companies said that their main focus is improving their product to align even more with customer needs , and that's what successful businesses have always been doing. You should continuously work on enhancing user experience, as that's the best way to boost user satisfaction and retention.

Product opportunity assessment questions for product managers

Here are ten fundamental questions created by Marty Cagan, famous product management thought leader and founder at Silicon Valley Product Group, that every product manager should ask themselves and their product teams:

• Exactly what problem will this solve? (value proposition)
• For whom do we solve that problem? (target market)
• How big is the opportunity? (market size)
• What alternatives are out there? (competitive landscape)
• Why are we best suited to pursue this? (our differentiator)
• Why now? (market window)
• How will we get this product to market? (go-to-market strategy)
• How will we measure success/make money from this product? (metrics/revenue strategy)
• What factors are critical to success? (solution requirements)
• Given the above, what’s the recommendation? (go or no-go)

Product opportunity assessment: Real-world examples

Amazon prime.

By analyzing user behavior, Amazon discovered that their customers increasingly sought fast and convenient shipping options. They went on to do market research and examine their competitors' offerings, and they realized there was a gap.

When they first launched Amazon Prime in 2005, there weren't many e-commerce websites that guaranteed fast shipping, and those with this option were very pricey and not accessible to everyone.

Amazon realized that a combination of fast shipping and convenient prices could be their differentiator, so they tested it. First, they surveyed their existing customers, asking whether they'd be willing to pay for faster service.

When the answer was predominantly positive, they launched the first pilot program of Amazon Prime, where they guaranteed two-day shipping of selected items within the United States in 2005.

(By the way, this is still relevant, as one recent study revealed that almost 60% of customers would be willing to pay more for better customer service. )

The program was so successful that it spread to four other countries in the next few years (UK, Germany, Japan and France) before eventually spreading worldwide and being available in over 20 countries today.

Slack was first developed as an internal communication tool by Stewart Butterfield and his team that was working on a gaming project.

Due to the project's complexity, they needed a tool for quick real-time communication, and they weren't satisfied with the solutions available at the time. They wanted to reduce the time-consuming practice of sending emails back and forth, so they created the app that later became known as Slack to solve that problem.

When the game they were creating didn't turn out to be successful, they realized they had accidentally developed another product that was solving a real problem. There were other people across the tech industry who were complaining about the lack of effective communication tools.

Their biggest competitive advantage was the ability to test Slack on their in-house team over a prolonged period. They were able to analyze their behavior in-depth and see what could be improved.

The MVP phase included testing Slack with a selected group of users outside their company and validating the idea. After gathering their feedback, the development team refined the app and improved the design and user interface to meet the demands of the broader user base.

Despite its remarkable success, Slack still thrives on continuous feedback from its user base as the team constantly improves the app.

You now have a complete guide and everything necessary for a good product opportunity assessment.

But why would you do it manually when our platform can help you streamline the whole process, gather and analyze user feedback in one place and then make a data-driven decision on which product to prioritize?

Sign up today and let us transform your customer data into actionable insights that will help you build your next product.

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What is an opportunity assessment?

An opportunity assessment is a systematic evaluation of an idea that could be a potential business opportunity. It involves analyzing market conditions, customer needs and competition.

How do you evaluate product opportunities?

You can evaluate product opportunities by analyzing market demands and users’ wants and using one of the popular frameworks for assessing product opportunities, such as RICE, the value-effort framework or lean product canvas.

Why is product opportunity assessment important?

Product opportunity assessment is vital because it prevents you from wasting time and money by helping you determine whether you have a viable opportunity early on before you spend your resources on developing the actual product.

What are the stages of opportunity assessment?

Conducting user and competitor research, creating the value proposition, using prioritization frameworks, testing and iteration.

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Why Opportunity Assessments Matter

At Efficio, we have seen a stark difference between companies’ approaches to cost reduction. On one hand, some rely on a historic trend to set a target that is mostly used to manage procurement performance; on the other hand, some build a robust target with clear bottom line impact, set in consultation with the business who are bought in to a delivery plan. The difference is that the second group use an Opportunity Assessment to review their spend in a structured effort to build this case.

An Opportunity Assessment builds a business case and strong implementation plan, with a clarity on ROI.

This guide is designed to help you get the most out of an Opportunity Assessment – whether it is self-delivered, with a third party, a one off, or part of ongoing opportunity identification efforts.

Download the guide to read more.

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Prioritize Your Opportunities with This Checklist

• Doug Andrew

How to filter out the things that aren’t worth it.

How do you evaluate the myriad of business opportunities you face every day? Should you speak at that event? Author a book? Attend a strategy summit? As you face an opportunity, or as you seek the opportunities you’d like to pursue, try ranking them according to five critical factors. 1.) Will this opportunity utilize your unique talents and abilities? 2.) Will it have an impact on people? 3.) Is this an opportunity for you to grow? 4.) Is it creating value for the business? 5.) Does it create opportunities for referrals to new customers? Rank your answers to these questions on a scale of -1 to +5 (Starting with a -1 highlights that some aspects of a project are actually a net negative – such as speaking to the wrong audience or the wrong industry). Then, tally your score. An opportunity that scores a 15 or lower may not be worth considering, while a score of 20 or higher would be a clear win.

How do you evaluate a business opportunity? The world is replete with SWOT mechanisms for evaluating a prospective new product offering, as well as with opportunity assessment templates for evaluating a project against overall business goals, customer impact, strategic potential, and competitive urgency. These instruments play a vital role in acquisitions, new products and features, and even the new divisions of business you’d like to deploy.

• DA Doug Andrew is the founder of Live Abundant, a company that educates on topics of health, wealth, and life fulfillment. He is the author of multiple books that include The Last Chance Millionaire, Millionaire by Thirty, (co-authored with sons Emron and Aaron) and Entitlement Abolition .

Partner Center

How to Evaluate a Business Plan

by Evangeline Marzec

Published on 16 Oct 2019

Whether you're an investor, an entrepreneur or a business skills teacher, you'll be exposed to a wide variety of business plans and should have a solid, somewhat standard approach to conducting a business plan assessment. Analyze each section individually, and then look at the plan as a whole to determine the viability of the business and the likelihood of its success in the manner proposed. Also consider the writing skills and attention to detail that went into formulating the plan.

Read and Understand the Executive Summary

The first step in a business plan assessment is reading the business' executive summary. This should be a concise "elevator pitch", not a summary of the business plan. In one or two pages, it should convey the market opportunity and the uniquely compelling features of the business that will help it meet that opportunity. The executive summary should excite you and make you want to turn to the next page. If it doesn't, the entrepreneur might lack marketing or writing skills, or it may indicate that the idea itself is not going to fly.

Analyze Opportunity in the Market

Evaluate the market opportunity. Ideally, the market should be growing at least 10% per year and have a substantial potential relative to the size of the business and investment. For example, a small company seeking an investment of $50,000 should see a potential market of $5 million.

The larger the potential market and the faster it is growing, the greater the opportunity in the market. Look to the exhibits and appendices to ensure that the business actually has done the necessary market research and can back up any claims.

Evaluate the Company's Business Strategy

Examine the company strategy for capturing its market. The plan must clearly describe the problem the company is solving or need it is meeting for customers, and then propose a solution. This is the crux of a business plan assessment.

Closely examine the alignment between problem and solution. Will the company actually address that need? This evaluation must take into account the product or service being offered, the operational capacity and efficiency with which the business actually can produce its product, and the quality of the proposed marketing efforts.

Examine the Business Environment

The business plan should describe the competitive landscape in which the company operates, preferably by referencing Porter's 5 Forces or another well-established tool. Look for detailed breakdowns and analyses of each of it competitors, and of how the company is different and better than the competition in a particular niche. This section should include the regulatory environment and mention any costs or necessary delays associated with regulations.

Porter's 5 Forces is an evaluation model that looks closely at the five competitive forces at play in the business landscape. These forces are present in every industry and by evaluating how they manifest in an individual industry, one can gauge that industry's strengths and weaknesses. Porter's 5 Forces are:

• Competition in the industry
• Potential of new entrants in the industry
• Power of suppliers
• Power of customers
• Threat of substitutes

Evaluate the Leadership Team

Look for experience, integrity and passion in the executive team. Read bios and brief highlights of each executive's strengths and expertise should accompany standard business information such as headquarters and corporate structure. The company should have experienced advisers, either formally or informally.

It is paramount that the principals involved in the business convey their passion and drive toward success with this project. If the founders haven't invested their own capital into the business, or plan on keeping their “day jobs” while running the business, they might lack faith in the project.

Crunch the Numbers and Understand the Finances

Ensure that the financial projections are both promising and realistic. Most entrepreneurs vastly overstate their company's potential, starting with the market size and market share. Financial figures should be based on historical data if available, or very conservative projections if the company is not yet profitable. Entrepreneurs that project capturing 20% market share in the first two years probably have unrealistic expectations.

Investigate the returns provided by the investment. Good business plans include exit strategies for pulling the initial investment back out of the company, and have a realistic valuation of their shares.

View the Business Plan as a Living Document

Evaluate the business plan as a whole document, and as a reflection of a real-world company. Determine whether the market need is adequate, the company's offerings are compelling, the management team experienced and committed, and the financial statements realistic. Does this company as a whole have a chance of success?

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Product June 22, 2013 Marty Cagan

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Lean Canvas vs. Opportunity Assessment

One question that’s come up several times recently is the difference between an Opportunity Assessment , and a Business Model Canvas (or its popular derivative Lean Canvas ).

While it is true you could try to use each to serve the purpose of the other, it quickly becomes clear that they are addressing different needs.

A Canvas is especially helpful when you are starting a new business, or creating an entirely new product line.  In this situation, you have many different risks, including validating your value proposition, figuring out how you intend to make money, how you plan to get this product out to your customers and sell to them, how much it will cost to produce this product, what will you measure to track your progress, and not to mention determining if there is a market there to sustain this business.

For decades people would create business plans to try to highlight these topics and how they intended to tackle them.  But many people, including me, have written on the many reasons why those old business plans were often more harmful than helpful.

A Canvas is intended to be a very lightweight tool to call out these risks early and encourage you to tackle them up front and not just think everything is about coding.  I much prefer the Canvas to old style business plans, but I have also observed that many startup teams still spend too much time on the Canvas and keep postponing that pesky little problem of coming up with a solution that people actually want to buy.

In contrast, when you have an existing product, we are constantly considering new projects, new designs, and new features, and an Opportunity Assessment is designed as a very lightweight tool for highlighting the risks of the new effort.

In the case of an existing product, the majority of a Canvas is irrelevant.  You already have a distribution model.  You already have a monetization strategy.  There is already a well-defined cost structure.  You are simply trying to create more value in your solution.

The key questions in an opportunity assessment are: what problem are you trying to solve; who exactly are you solving this problem for; and how will you measure success?   You can see how you might also be able to use this for framing the work of creating an entirely new business, but I would argue that the Canvas does a better job of highlighting the most common risks.

Normally we assess this ongoing product work, and we maintain a prioritized list of assessment which is often called the Opportunity Backlog .  During Product Discovery we are seeking good product solutions to these opportunities, and when we succeed, the work is described on the Product Backlog.

So if you’re starting a company or even a new product line, consider a Canvas to highlight the key risks and frame your work.  Once you have an existing product that you are investing in, consider using an Opportunity Assessment to highlight the key risks and frame the ongoing product discovery work.

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I doubt anyone is surprised to learn that many people have been asking me about Brian Chesky’s recent comments. I’ve...

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6 Elements of a Sales Opportunity Plan

Sellers who win consistently plan to win from the start. They're methodical in their approach to opportunities. They carefully map their sales process to the buyer's, set goals for every meeting, and do an exceptional job of communicating value.

Moreover, top sellers build strategies to proactively drive sales opportunities. The sales opportunity plan we use at RAIN Group is made up of six core elements we’ve refined over years of use. In this article, I’ll share each of the six elements in detail.

What Is a Sales Opportunity Plan?

How sales opportunity planning contributes to win rate, 6 elements of value-centered sales opportunity plans.

• Opportunity Snapshot
• Opportunity Goal and Value Case
• Competitors: Strengths, Weaknesses, and Vulnerabilities
• Advancing the Sale

Ask Yourself: What If I Dropped It on the Floor?

In this video, Andy Springer shares an overview of the components of a buyer-centered sales opportunity planning approach.

The idea behind sales opportunity planning is to accomplish four tasks: create and communicate maximum value for the buyer; leverage your resources; satisfy buying criteria; and edge out the competition. A thorough sales opportunity plan will accomplish these tasks by answering the following questions:

• What are the key elements of the specific value case for why this particular buyer should buy from you?
• What is your strategy to out-maneuver the competition?
• Who are the various buyers on the buying team and how might their buying criteria differ from person to person?
• What are the action steps first, next, and throughout the process?
• How much effort should you devote to one opportunity versus another?

The primary goal of sales opportunity planning is to improve the likelihood of winning the deal.

Successful plans are built and aligned around creating and communicating value for the buyer. Everyone claims their company is buyer-focused. But consider the following statistics from our Top-Performing Sales Organization study:

• 35% of respondents didn't agree that their sales organization focuses on driving maximum value for the customer
• 52% of respondents didn't agree that their sales process was customer-focused

It's tough to have a buyer-focused sales organization when the planning tools and prompts are all about the seller and their goals.

For example, many opportunity plans contain prompts for capturing the seller’s mission, sales objectives, and sales positioning. What about the buyer’s mission? A case for buyer value? Buyer objectives and possible solutions?

Writing your plan is like crafting a business plan. It’s iterative. Nonlinear. You move back-and-forth between sections. You edit, adjust, and refine your thinking based on research, meetings, and discussions.

It’s the same for opportunities large and small. You still cover the same elements, you just move more quickly through the process depending on deal size. Maybe you selectively work on areas that you believe are essential for a given opportunity.

As to what your plan should include, here are the six elements of an effective, value-centered sales opportunity plan.

1. Opportunity Snapshot

In this foundational part of your plan, communicate the big-picture importance and status of the opportunity. Attend to the practical details, namely:

• Account name
• Opportunity name
• Demand dynamic
• Target revenue for the sale
• Target win date
• Win confidence

Also, determine whether you're pursuing the right opportunities and applying the correct pursuit intensity . Ask questions like:

• What's the desired outcome of this opportunity?
• What am I selling and for how much?
• When do I expect it to close?
• What obstacles am I facing?
• What strategies do I have for moving the sale forward?
• Is this sale qualified?
• What stage is this deal in?

To close high-value opportunities, you need to know the people on both your team and the buyer’s. For your team, keep track of everyone who'll be involved. Think beyond who's on your permanent selling team. Who could join meetings or be a part of a particular opportunity?

Let’s say the buyer is in the healthcare space. Is there anyone on your team who's closed healthcare deals? Those people are more likely to contribute innovative ideas during meetings or tap into personal insight to find potential value for the buyer.

With respect to the buyer’s team, know everybody’s roles in the decision-making process. Which buyer persona do they represent? What about buying modes? How strong are your relationships with each person on the team? Uncover and keep track of anyone who may have a say in the purchase decision. Analyze the buyer decision roles they play in decision making, which are:

• Business Drivers

Selling is about change. It’s about persuading buyers you can get them from a bad place to the promised land. To accurately juxtapose the buyer's current reality with the possible new reality, you need a thorough understanding of the buyer’s needs. These break down into two primary categories:

• Rational needs: Explicit rational needs, usually financial, technical, or strategic. There are also hidden or suspected needs that the buyer may have, but hasn't yet disclosed.
• Emotional needs: While these can also be explicit or just suspected, emotional needs are typically professional, social, or psychological—and they can be just as powerful as rational ones.

A common complaint sales leaders have is that their sellers don’t complete a thorough needs discovery. One of the merits of sales opportunity planning is that it prompts sellers to be thorough. In my experience, when sellers plan to be thorough, they are.

4. Opportunity Goal and Value Case

Now we get to what products and services comprise the overall solution. Start by listing the relevant components of your offering. Then, link each component to the value it provides the buyer. These points will eventually form your value messaging.

Note that we only do this after we have a strong idea of the buyer’s needs. Leading with a product or solution is a recipe for failure. Because buyers—especially buyers who aren’t yet solution aware—are unlikely to buy unless they can answer four questions about your value proposition :

• Why act? Buyer can articulate why your proposed solution is important.
• Why now? Buyer can articulate why your proposed solution is urgent.
• Why us? Buyer can articulate why your solution is the best choice.
• Why trust? Buyer can articulate why they should believe in your offering, company, and you.

If you want the buyer to answer these in a certain way, it’s immensely helpful to articulate the answers to yourself—ideally as part of your sales opportunity plan. To make the case as strong as possible, understand the true difference your solution will make for the buyer.

5. Competitors: Strengths, Weaknesses, and Vulnerabilities

This part of the sales opportunity plan is fairly straightforward. Compare your solution with alternatives based on the buyer’s stated decision-making criteria. What does the buyer value that you offer, but your competitors don't?

Related: 7 Tips for Differentiating in the Selling Process

6. Advancing the Sale

Next, create the action plan to move the sale forward.

• Summarize your overall current position, with both strengths and vulnerabilities.
• Outline a response strategy for possible objections and roadblocks.

Create a big play. Some opportunities warrant what we call big plays. These are bold, atypical actions you can take to inspire buyer action and set themselves apart from the competition. In my experience, successful big plays require some creativity and courage.

For inspiration, read How to Win Big Sales Opportunities with Big Plays .

• Identify insights. Sales winners are much more likely than the rest to bring ideas to the table for buyers that are new, noteworthy, and non-intuitive. If you plan to bring ideas to the table, you’re much more likely to actually do it than if you leave it to chance.
• Map to the buying process. Top sellers think "buying first, selling second." They know the buyer's process and they leverage it. They match key steps in the buying process to their own sales process and strategize accordingly. Know the buying process and you can plan selling actions to succeed with it.
• Note critical comments and questions left to answer. Make notes to yourself that might influence the direction of the sale. Scour what you already have to bring together the most critical notes and questions in one place for future reference during this home stretch.
• Plan next steps. Record the action steps you need to take now, next, and throughout the rest of the process to win the sale.

Let’s say you drop your completed sales opportunity plan on the floor of a buyer’s office and they stumbled across it. It’s our belief that the buyer should be more inclined to buy from you after reading it than if they hadn’t.

Done correctly, your sales opportunity plan will be all about them—their goals and needs, as well as how your offering creates value for them. They’ll see the thoughtfulness and thoroughness with which you’ve considered them as a buyer.

Too many sales opportunity plans show how a seller will achieve the seller’s goal by using tactics to “close a buyer” at “a high price, unless they push back,” and so on. It’s all seller-focused. Generic. When planning frameworks are too seller-focused, the behaviors and thinking becomes seller-focused, and that’s not good for creating strong relationships, driving maximum value, or winning.

To win sales opportunities, the focus should always be on the buyer.

You've found your buyer's needs—now convince them to move forward. In our How to Make Persuasive Sales Presentations Toolkit , we share resources and frameworks for leading impactful conversations at any stage of the sales cycle.   Download now. >>

Topics: Sales Opportunity Management

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Business Education

Business Model vs Business Plan: Main Differences

19 Aug, 2024

Distinguishing business models from plans is crucial for success. Models outline value creation and profit generation, while plans detail strategies, research, and projections. Together, they form the blueprint for long-term success and operational execution.

What is a Business Model?

A business model is the backbone of any company, detailing the plan for how it intends to operate, generate revenue , and make a profit. It's less about the nitty-gritty details found in a business plan and more about the overall concept of how the business creates value for customers and captures value for itself. Essentially, a company's business model describes the way the company sells its products or services and how it establishes and maintains customer relationships to achieve financial success.

At its core, a business model involves identifying the value proposition of the company, which is what makes its products or services attractive to customers . It also outlines the customer segments targeted, the key activities and resources needed to operate, and the channels through which it reaches its customer base. Importantly, it details the revenue streams the business will pursue to generate income and the cost structure that outlines the expenses involved.

What is a Business Plan?

A business plan is a detailed roadmap for building a successful business. Unlike the broader strokes of a business model that describes how a company creates and delivers value, business plans are a comprehensive document that outlines the specifics of business strategy. They serve as a guide to what the business intends to do and how it plans to do it and are often used to attract investors and secure financing.

The heart of a business plan includes an executive summary, which is a snapshot of the business and its plans for success. This section briefly explains the business idea, key objectives, and how the business will achieve its goals. It's followed by detailed sections that outline the business's structure, market analysis, value proposition, marketing and sales strategies, financial projections, and more.

Key components of a business plan include the business model canvas, which lays out the key resources and activities needed to operate the business. It also delves into the cost structure, detailing all the expenses the business will face. A thorough market analysis assesses the existing market, target customers, and competitive landscape. This helps in formulating a solid marketing strategy and establishing a unique value proposition that sets the business apart from its competitors.

Financial planning is also crucial, with sections dedicated to expected financial performance, revenue generation, and a detailed financial forecast. This helps potential investors and business owners understand the financial viability and growth potential of the business.

Types of Business Models

There are many types of business models, each defining a unique way a company creates value for its customers and generates profits. Understanding different business models helps owners and entrepreneurs select the right approach for their business concept and target market. Here are some common business models:

• Subscription Services : This model offers customers regular, ongoing access to products or services in exchange for a recurring fee. Popular among digital services and software, it provides steady revenue and customer loyalty.
• Freemium Model : Common in the tech industry, the freemium model offers basic services for free while charging for advanced features. It attracts a large user base quickly, with the potential to convert a portion to paid versions.
• Product Sales : This traditional model involves selling goods directly to customers. It can range from retail operations to online stores, focusing on producing, marketing, and selling physical items.
• Service-Based Model : Professional firms and contractors often use this model, providing specialized services like consulting, design, or maintenance. Success relies on expertise, customer service, and reputation.
• On-Demand Model : Popularized by companies like Uber, this model provides goods or services directly on customer request, often facilitated through a digital platform or app.
• E-commerce : With the rise of the internet, many businesses operate online, selling products or services directly through their website or online marketplaces.
• Affiliate Marketing : This model pays external parties to generate traffic or leads to the company's products and services. It's a way to extend market reach without directly handling sales.
• Advertising Model : Media companies and websites often use this model, providing content or services free of charge, but generating revenue through advertisements.

Understanding these business models helps a company decide the best strategy for market entry and growth. Each model has its own set of operational details, target market strategies, and financial implications. Selecting the right business model is crucial for a company's success, aligning with its core values, customer needs, and long-term goals. As the business evolves, it may adopt multiple models or shift strategies to adapt to changing market conditions or customer feedback.

Business Model vs Business Plan: Key Differences

Understanding the difference between a business model and a business plan is crucial for anyone diving into the world of entrepreneurship or looking to scale their business. Here are the key differences:

• Business Model : A business model is an overarching concept that explains how a company creates, delivers, and captures value. It's about the company's core strategy for generating profits and includes elements like value propositions, customer segments, and revenue streams.
• Business Plan : A business plan is a detailed document that outlines the specific strategies, goals, and actions of a business. It's a comprehensive plan that includes market analysis, financial projections, and operational details aimed at guiding the business's trajectory and attracting investors.
• Business Model : Generally broader and more conceptual, a business model provides a high-level view of the business's approach to the market. It's about the fundamental structure of how the business operates and competes.
• Business Plan : More detailed and tactical, a business plan lays out the step-by-step plan for executing the business model. It includes in-depth information on planning, marketing, finances, and more.
• Business Model : Business models often need to be flexible and adaptive, especially in early stages or in rapidly changing markets. They can evolve as the business learns more about its customers and competition.
• Business Plan : While it's a detailed guide, the business plan is also a living document but typically requires formal revisions and updates as the business grows and market conditions change.
• Business Model : Primarily used internally to guide the company's strategy, but it can also be used to succinctly explain the business to external stakeholders and potential partners .
• Business Plan : Often intended for external stakeholders, especially potential investors, lenders, or partners who want a detailed understanding of the business's approach and potential for success.
• Business Model : Includes the business model canvas or similar frameworks detailing the company's value proposition, customer segments, channels, customer relationships, revenue streams, key activities, key resources, key partners, and cost structure.
• Business Plan : Includes an executive summary, company description, market analysis, organization and management structure, product or service line, marketing and sales strategy, funding request, financial projections, and appendices.

While a business model provides a conceptual framework for understanding how the company creates value and money, the business plan offers a detailed guide on how to implement these concepts and achieve specific business goals. Both are vital, but they serve different purposes and address different needs within the business's lifecycle.

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