Chapter 2_start-up and the need for competitive advantage. To begin a new type of business based on a recently invented or newly developed product or service. To take advantage of an ideal location, equipment, products or services, employees, suppliers, and bankers. To avoid undesirable precedents, policies, procedures, and legal commitments of existing firms: capitalize on competitor"s weakness or problems with existing offerings or service. Identifying good" start-up ideas (factors that determine whether an idea for a new venture is a good investment opportunity) Meet a clearly defined market need ( need for the product) A product or service that customers perceive to be superior to those of its competitors. A good fit between the entrepreneur and the opportunity. Appropriate skills and experience to operate the venture. Look to sectors / industries favoring new firm formation. Look for opportunities favoring new firm over established firms. Opportunity to introduce highly differentiated new offering. Innovation, capacity, position, timing, skill, expertise or experience.