Insider Media Limited

Entrepreneurship is primarily about two things, spotting opportunities and then making them happen. Opportunities arise because the world continually changes; new laws, new ways of doing things, new technologies.

Change will impact individuals and organisations usually resulting in problems. Increasing car ownership, problems parking; living cost rising, people interested to increase income. Solution, link house-owners and driveways with those needing to park, suddenly you have a business, ParkAtMyHouse.com.

Entrepreneurs seem to spot the signs early on. They see the problem, understand who has it, how it might be resolved and why theirs will be a superior offering. This is the Value Proposition. Step 1.

Step 2. How will I make money and how will I get my offering to the customer? You need to develop a story as to how the business will operate, how it will be configured and ensure that the money coming is more than what goes out. This is the business model.

Step 3. Finally how will this happen? What resources (money, people, equipment, materials) do we need, how will these resources be deployed, what are the potential risks and how might we guard against them. This is our 'Roadmap'.

The great thing about these three steps is that much of it can be done on paper and really only requires that we get out there and talk to real people, e.g. potential customers. Make sure that they have the needs or problems that we think they have and that there is someone prepared to pay for our solutions. Mistakes made here are cheaper but represent vital learning points and helps to develop a better business.

Why is this important? Well if you hadn’t noticed there’s a recession on! People are tightening their belts, keeping hold of their wallets and cutting back on all but the essentials. We need to make sure that what we are offering, people really want and will pay for.

Does that mean that there are less opportunities now? No, in fact the complete opposite. A new landscape is emerging and with it, new needs. More people are unemployed and working from home but need support for their business, they also need to be entertained but more cheaply. All new business opportunities!

Dr Martin Henery, Manchester Business School.