🔹 1.

Difference Between Opportunity and Idea

 Idea → A creative thought or concept (e.g., “an app that delivers food with
drones”).
 Opportunity → A favorable set of circumstances that makes it possible to turn
an idea into a real business (e.g., regulations allow drones, people want faster
delivery, and technology is available).
👉 In short: Ideas are possibilities, opportunities are realities waiting to be
acted on.

🔹 2. Four Essential Qualities of an Opportunity

Though not fully listed in your file, entrepreneurship literature (Hisrich, Barringer) often
highlights that a true opportunity must:

1. Be attractive (people want it).

2. Be timely (fits current trends/market needs).
3. Be durable (not just a short-term fad).
4. Be value-adding to customers.

🔹 3. Three Main Approaches to Identifying Opportunities

a) Observing Trends

Opportunities emerge when external trends change. Four major types of trends:

1. Economic Forces – e.g., during recessions, businesses like GasBuddy.com

thrive by helping consumers save money.
2. Social Forces – changes in how people live and behave, e.g.:
o Ageing population → nursing homes, health apps.
o Diversity at work → cultural consulting services.
o Social media → influencers, content creation.
o Focus on health → gyms, organic food.
3. Technological Advances – new tech creates whole industries, e.g.:
o Internet → e-commerce, online banking.
o Biotechnology → new medicine.
o Smartphones → mobile apps, accessories (like H2O Audio’s waterproof
iPhone cases).
4. Political/Regulatory Changes – new laws create business openings, e.g.:
o Environmental laws → waste management firms (like Zoomlion in Ghana).
b) Solving a Problem

 Opportunities arise when entrepreneurs spot problems and solve them.

 Problems can be personal, observed in society, or discovered by accident.
 Example: Ghana’s expensive electricity problem → many entrepreneurs moved
into solar energy solutions.

c) Finding Gaps in the Marketplace

 Sometimes, existing businesses ignore small but important needs.

 Entrepreneurs can fill these “market gaps.”
 Example: Daisy Rock Guitars noticed no guitars designed for women/girls →
created a niche market.
 Ghanaian example: local delivery for rural areas (mainstream companies don’t
serve them).

🔹 4. Entrepreneurial Characteristics for Opportunity Recognition

1. Prior Experience
o Having industry experience helps spot unmet needs.
o Example: A former telecom employee might see a need for cheaper data
bundles.
2. Cognitive Factors
o Some people have “entrepreneurial alertness” (a sixth sense for spotting
opportunities).
o They notice patterns or opportunities others overlook.
3. Social Networks
o Who you know influences what you discover.
o Research shows 40–50% of entrepreneurs got business ideas from their
contacts.
o Strong ties (friends, family, coworkers) → reinforce what you already
know.
o Weak ties (casual acquaintances) → expose you to new, unexpected
ideas.
4. Creativity
o Opportunity recognition is often linked to creativity.
o The creative process has five steps:
1. Preparation (gather knowledge/experience)
2. Incubation (let the idea “sit” in your mind)
3. Insight (the “aha!” moment)
4. Evaluation (analyze if it’s viable)
5. Elaboration (develop the idea into a real product/service).
🔹 5. Techniques for Generating Ideas

1. Brainstorming
o Group activity, no criticism, freewheeling, fast-paced, encourage “leap-
frogging” ideas.
2. Focus Groups
o Small groups (5–10) led by a moderator to discuss issues.
o Helps entrepreneurs understand people’s feelings and identify
opportunities.
3. Library and Internet Research
o Libraries → trade journals, reports, reference materials.
o Internet → “hot new business ideas” searches, Google Alerts, industry
databases (ProQuest, IBISWorld, Mintel).
4. Other Techniques
o Customer Advisory Boards – ask customers for ideas.
o Day-in-the-Life Research – spend time observing customers to discover
unmet needs.

🔹 6. Encouraging New Ideas in Firms

 Establish a focal point for ideas

o Assign someone to manage and track ideas.
o Use an “Idea Bank” (physical or digital) to store and revisit them.
 Encourage creativity at all levels
o Create an environment where employees feel free to share ideas.
o Reward and recognize innovative thinking.

🔹 7. Assignment (in the slides)

 Identify one business in Ghana for each approach (trend, problem-solving, gap).
 Research the Ministry of Business Development:
o Mandate, agencies, achievements, challenges, solutions.
🔹 1. What is Feasibility Analysis?

 Definition: The process of determining whether a business idea is viable (worth

pursuing).
 Purpose: To screen ideas early before investing a lot of resources.
👉 It acts like a filter — only the most realistic business ideas pass through.

🔹 2. When to Conduct Feasibility Analysis

 Timing: Do it early, before spending big money or time.

 Goal: Save resources by identifying bad ideas quickly.
 Components: A proper feasibility analysis has four parts:
1. Product/Service Feasibility
2. Industry/Market Feasibility
3. Organizational Feasibility
4. Financial Feasibility

🔹 3. Product/Service Feasibility Analysis

Purpose: To check whether customers actually want your product/service.

Components:

1. Product/Service Desirability
o Questions to ask:
 Does it make sense?
 Does it solve a problem, follow a trend, or fill a market gap?
 Is this the right time to launch it?
 Are there fatal flaws in the design?
o Concept Test: Write a one-page concept statement, share with
potential users, get feedback.
2. Product/Service Demand
o Step 1: Talk to potential customers face-to-face → to test reactions.
o Step 2: Use online tools (Google Ads, landing pages, surveys, Google
Trends, Quora, etc.) to measure interest.

👉 Example: If you want to launch a fitness drink, you could make a concept
statement, ask gym members for feedback, and run a small ad to see how many people
sign up.
🔹 4. Industry/Target Market Feasibility

Purpose: To check if the industry and specific target market are attractive enough.

1. Industry Attractiveness
o Attractive industries are usually:
 Young (not declining).
 Early in their life cycle.
 Fragmented (not dominated by big players).
 Growing (not shrinking).
 Selling “must-have” products, not just “nice-to-have.”
 High profit margins.
 Not overly dependent on cheap raw materials.
2. Target Market Attractiveness
o Must be:
 Big enough to support the business.
 Small enough to avoid being crushed by large competitors.
o Evaluate:
 Competitors (are you better than them?)
 Company resources (do you have what it takes to compete?).
 Segment size (number of customers).
 Segment growth rate.
 Segment profitability.

👉 Example: Mobile money services in Ghana → attractive because the industry is

growing, fragmented, and essential (“must-have”).

🔹 5. Organizational Feasibility

Purpose: Can the business team actually deliver?

Components:

1. Management Prowess
o Does the entrepreneur/founding team have:
 Passion for the idea.
 Deep understanding of the market.
2. Resource Sufficiency
o Check if you have the non-financial resources needed. Examples:
 Affordable office/lab space.
 Contract manufacturers/service providers.
 Key management employees.
 Support staff.
 Intellectual property protection.
 Partnerships.
👉 If you lack critical resources, the idea may not be feasible.

🔹 6. Financial Feasibility

Purpose: Final check — can the business make money?

Components:

1. Total Start-up Cash Needed

o Prepare a budget (capital purchases + operating expenses) up to first
revenue.
2. Financial Performance of Similar Businesses
o Research competitors → how much do they sell, what are their costs?
o Use reports, observations, and market data.
3. Overall Financial Attractiveness
o Signs of promising businesses:
 Steady, rapid growth (first 5–7 years).
 High recurring revenue (customers keep coming back).
 Forecastable income/expenses.
 Ability to finance growth internally.
 Exit opportunities for investors.

🔹 7. Why This Matters

 A feasibility analysis reduces risk by testing ideas before fully committing.

 It helps entrepreneurs refine or abandon weak ideas.
 It increases the chances of success by focusing only on viable opportunities.

📘 Lecture 4: Intellectual Property (IP)

1. What is Intellectual Property (IP)?

 Definition: Any product of human intellect that is intangible but has value in the
marketplace.
 Called "intellectual" because it comes from human creativity, imagination, and
inventiveness.
  Importance:
o Traditionally, businesses valued physical assets (land, buildings,
machines).
o Today, intellectual assets (ideas, brands, innovations) are often more
valuable.

💡 Example: Coca-Cola’s recipe (trade secret), Apple’s logo (trademark), Microsoft’s

Windows software (copyright), and Tesla’s battery technology (patent).

2. Common Mistakes Firms Make

 Not identifying all their IP.

 Not legally protecting it.
 Not realizing its value.
 Not including IP in business strategy.

3. How to Decide What to Protect

Two criteria:

1. Is it linked to competitive advantage?

2. Does it have market value?

4. The Four Main Types of Intellectual Property

1. Patents
2. Trademarks
3. Copyrights
4. Trade Secrets

4.1 Patents

 Definition: A patent is a grant that gives the inventor the right to exclude
others from making, using, or selling an invention for a certain period.
 Important: A patent does not give you the right to use your invention if it
infringes someone else’s patent. It only lets you stop others.
📍 Types of Patents

1. Utility Patent – new/useful process, machine, product, or composition. (20

years)
2. Design Patent – new/original ornamental design. (14 years)
3. Plant Patent – new plant varieties reproduced asexually. (20 years)
4. Business Method Patents – protects ways of doing business (e.g., Amazon
one-click ordering).

📍 Patents in Ghana

 Governed by Patents Act 2003 (Act 657).

 Granted by the Registrar General’s Department.
 Patents are territorial (valid only in Ghana unless filed with ARIPO or via
WIPO’s PCT).

📍 Patent Infringement

 Unauthorized use of another’s patent.

 Very costly to litigate (cases may cost $500,000+).

4.2 Trademarks

 Definition: Any word, name, symbol, or device used to identify source of

goods/services and distinguish them from others.
 Helps customers recognize and trust brands.

📍 Types of Trademarks

1. Trademark – for goods (Apple logo).

2. Service Mark – for services (Amazon.com).
3. Collective Mark – used by groups/associations (Rotary International).
4. Certification Mark – certifies quality/standard (e.g., “100% Napa Valley”).

📍 What Can Be Trademarked

 Words (Birchbox)
 Letters/numbers (3M, Boeing 787)
 Logos (Nike swoosh)
 Sounds (MGM lion roar)
 Colors (Nexium’s purple pill)
 Shapes (Apple iPhone shape)
 Smells (special fragrance in stationery)
  Trade dress (store layout)

📍 Exclusions

 Immoral/scandalous words
 Deceptive marks
 Generic/descriptive marks
 Surnames (e.g., Smith)

📍 Registration in Ghana

1. Search (check if available).

2. Application (Form No. 2, fee ~$200).
3. Examination by Trademarks Office.
4. Publication & Opposition (2 months).
5. Certification (valid 10 years).
6. Renewal every 10 years.

4.3 Copyright

 Definition: Grants creators of original works the right to control use and gain
economic benefit.
 No need for artistic merit—manuals, software, brochures also qualify.

📍 What is Protected?

 Literary works
 Music
 Software
 Drama
 Dance/choreography
 Visual arts (paintings, graphics, sculptures)

📍 Exclusions

 Ideas are not protected, only the expression (idea-expression dichotomy).

💡 Example: The idea of a football-themed restaurant isn’t protected, but a written

concept or design plan is.

📍 Copyright in Ghana

 Apply with author details, work title, publication info, and deposit copies.
  Copyright Office reviews and issues certificate within 2 weeks.
 Valid once created, but registration strengthens proof.

📍 Infringement

 Copying or making derivative works without permission.

 Example: illegal downloading of music.

4.4 Trade Secrets

 Definition: Confidential info that provides competitive advantage.

 Examples: formulas, marketing plans, customer lists, financial data.
 Protected by secrecy, not registration.

📍 What Qualifies?

 Not public knowledge

 Shared only internally (need-to-know basis)
 Protected by confidentiality/security
 Valuable and costly to develop
 Hard to duplicate or reverse engineer

📍 Protection Methods

 Restrict access
 Label documents
 Password-protect files
 Security systems
 Logbooks for visitors

5. Intellectual Property Audit

 Definition: A review of what IP a firm owns and how it is protected.

 Reasons:
1. Ensure IP is properly protected.
2. Prepare for mergers/acquisitions (prove valuation).

Steps:

1. Inventory all existing IP (patents, copyrights, trademarks).

2. Identify works in progress and protect them early.
📘 Lecture 6: Franchising

1. What is Franchising?

 Definition: A form of business ownership where a franchisor (who owns a

successful product/service) licenses its trademark and business method to a
franchisee in exchange for:
o Franchise fee (initial payment)
o Ongoing royalty payments (usually % of sales)

💡 Example: McDonald’s (franchisor) licenses its brand and operating system to

independent restaurant owners (franchisees).

2. Types of Franchise Systems

1. Product and Trademark Franchise

o Franchisee gets the right to sell products and use franchisor’s trade name.
o Often manufacturer → dealer/distributor.
o Example: GM car dealerships, Coca-Cola bottlers.
2. Business Format Franchise (most popular)
o Franchisor provides not just product/trademark, but a whole business
system (training, manuals, ads, ongoing support).
o Example: KFC, Subway, Shell, Holiday Inn.

3. Types of Franchise Agreements

1. Individual Franchise Agreement – One outlet only.

2. Area Franchise Agreement – Franchisee can open several outlets in a certain
area.
3. Master Franchise Agreement – Franchisee can develop an entire
region/country and even sub-franchise.

4. When to Franchise
Franchising works best if:

 Strong trademark.
 Proven, easy-to-replicate business model.
 Desire to grow quickly.

💡 Example: Burger King = suitable. Walmart = not suitable (too large, complex, and
costly to replicate).

5. Setting Up a Franchise System

Nine steps (summary):

1. Develop a business plan.

2. Strengthen the brand.
3. Create training/support systems.
4. Write operating manuals.
5. Register IP (trademarks, etc.).
6. Decide franchise fees and royalties.
7. Recruit franchisees.
8. Provide initial and ongoing training.
9. Continuously improve and monitor.

6. Qualities of a Good Franchisee

 Good work ethic.

 Follows instructions.
 Operates independently but is team-oriented.
 Experience in industry.
 Good financial resources and credit history.
 Positive representative of the brand.

7. Advantages & Disadvantages of Franchising (for the franchisor)

✅ Advantages

 Rapid, low-cost expansion.

 Income from fees and royalties.
 Motivated franchisees (they own the business).
 New ideas/suggestions from franchisees.
  Cost savings & bulk buying power.

❌ Disadvantages

 Profit is shared.
 Loss of control.
 Friction with franchisees.
 Legal expenses.
 Growth challenges.

8. Buying a Franchise (from franchisee’s view)

Key Questions to Ask Yourself

 Am I willing to follow rules strictly?

 Do I prefer being part of a system vs. independent?
 Am I comfortable paying royalties even if I make a loss?
 How much money and risk can I handle?

Costs Involved

1. Initial Franchise Fee (varies).

2. Capital Requirements (real estate, inventory, equipment).
3. Royalty Payments (~5% of sales).
4. Advertising Fees (national campaigns).
5. Other Fees (training, support, software).

9. Advantages & Disadvantages of Buying a Franchise

✅ Advantages

 Established brand & product.

 Proven system.
 Training & support from franchisor.
 Access to financing.
 Marketing support.
 Growth potential.

❌ Disadvantages

 High cost to enter.

 Little room for creativity.
  Long-term contractual commitment.
 Risk of fraud or lack of franchisor support.
 Termination or transfer problems.
 Bad franchisees elsewhere can damage the brand.

10. Misconceptions About Franchising

 “Franchising is a safe investment.” (Not always true.)

 “Strong industry guarantees success.” (Execution matters.)
 “Franchise = proven system.” (Depends on franchisor quality.)
 “No need for lawyer/accountant.” (Dangerous assumption.)
 “Rapid growth = best option.” (Can be risky.)

11. Legal Aspects

 In the U.S., franchising is regulated by the FTC (Federal Trade Commission).

 Franchisor must provide a Franchisor Disclosure Document (FDD) with 23
categories (history, financials, fees, etc.).
 Protects potential franchisees by ensuring transparency.

12. Additional Issues

1. Franchise Ethics
o Ethical concerns: “get rich quick” mentality, false guarantees, conflicts of
interest.
o Both franchisors and franchisees must maintain integrity.
2. International Franchising
o Growing because of market saturation in home countries and
globalization.
o Before buying abroad, check:
 Value of franchisor’s name locally.
 Saleability of the product in that market.
 Training and support provided.
 Get a good lawyer.

✅ Exam Tip: For any franchising question:

 Start with the definition.

  Mention types of systems + agreements.
 Outline advantages/disadvantages from both franchisor and franchisee
perspective.
 Add legal & ethical issues if relevant.

📘 Lecture 7: Writing a Business Plan

1. What is a Business Plan?

 Definition: A written narrative (25–35 pages) that describes how a new business
intends to achieve its objectives.
 Dual Use:
o Internal – Helps the founding team think through every aspect of the
venture.
o External – Communicates the business idea to outsiders (investors,
bankers, partners).

2. Who Reads the Business Plan?

1. Employees / Internal Stakeholders

o To understand the company’s direction.
o Helps everyone work in sync toward common goals.
2. Investors / External Stakeholders
o Want to see if the business is a worthy investment.
o Look for potential returns and credibility of the team.

3. Guidelines for Writing a Business Plan

 Follow conventional structure → makes it easy for busy investors to find info.
 Keep it clear and concise → 25–35 pages is usually enough.
 Types of Business Plans:
1. Full plan – comprehensive (25–35 pages).
2. Summary plan – shorter (10–15 pages).
3. Operational plan – internal use, focuses on execution.
 Plans evolve → expect to revise when getting feedback.

4. Suggested Outline of a Business Plan

 1. Cover Page & Table of Contents
2. Executive Summary
o Short overview (1–2 pages).
o Most important section (investors may only read this).
o Written last.
3. Industry Analysis
o Industry size, growth, structure, trends, key success factors, long-term
prospects.
4. Company Description
o Background, history, mission, products/services, ownership, partners.
5. Market Analysis
o Target market segmentation, buyer behavior, competitor analysis.
6. Economics of the Business
o How profits are earned, revenue drivers, cost structure, break-even
analysis.
7. Marketing Plan
o Marketing strategy (4Ps: product, price, place, promotion).
o Sales process (prospecting → closing → follow-up).
8. Product/Service Design & Development Plan
o Development status, costs, challenges, risks, proprietary issues (IP
rights).
9. Operations Plan
o How business will be run: location, facilities, equipment, front stage
(customer-facing) and back stage (internal).
10. Management Team & Structure
o Founders, team, board of directors, advisors.
o Critical section – investors look closely here.
11. Overall Schedule
o Key milestones (incorporation, funding, product launch, first sales).
12. Financial Projections
o Sources/uses of funds, assumptions, income statements, balance sheets,
cash flows, ratios.
13. Appendices
o Supporting materials (ads, studies, maps, contracts, market research,
letters of support).

5. Presenting a Business Plan to Investors

 Oral Presentation Tips:

o Stick to allotted time.
o Well-rehearsed, smooth, and professional.
o Slides must be clean and not overloaded.
 12 Slides to Include in Investor Pitch:
1. Title slide
2. Problem
3. Solution
4. Opportunity & target market
5. Technology
6. Competition
7. Marketing & sales
8. Management team
9. Financial projections
10. Current status
11. Financing sought
12. Summary
 Be ready for tough questions (about competition, assumptions, financial risks).

🔑 Key Insights

 The Executive Summary is the “hook” → must convince investors to keep

reading.
 Industry & Market analysis prove that you understand your playing field.
 Management Team often matters more to investors than the idea itself → strong
team = higher trust.
 Financial projections turn your plan into numbers → investors care about
profitability and scalability.
 Appendices give credibility → back up your claims with evidence.