Five (5)factors of
Business opportunity
1. Market Size
One of the most important factors when evaluating a business opportunity is market
size. Do a little market research. Figure out if there is a market for the opportunity —
and how big that market is.
Before you move forward, you want to be sure the demand is there. You don’t need to
appeal to a massive market, but it does help if you understand the market. Additionally,
knowing how engaged the market is and how likely they are to pay for what’s being sold
can help.
2. Relationships
Does the business opportunity come with some relationships? For example, do you
have an “in” that can help you leverage the opportunity? If you know someone who is
technically minded, that can help you with certain aspects of the opportunity. What are
your relationships with potential investors or customers? When you have more
relationships, the opportunity is likely to run smoother.
3. Ability to Manage Cash Flow
Next, you need to look at the ability to manage cash flow. Is there start-up funding for
the business? What about ways to keep funding the business each month. Figure out
how the cash flow will be managed, and take a look at the business plan. You want to
make sure that the business is likely to sustain itself after a period of time.
