Site icon Connectnigeria Articles

5 Factors to Use When Evaluating a Business Opportunity

Emmanuel Nnaemeka
Each day as business leaders, we are faced with opportunities. And deciding if they are good for our businesses is where the major challenge lie. Whether you are starting a new business or you’re seeking to expand your business to new areas, the question that should be topmost in your mind is if there are opportunities in the line of your business. Evaluation of business opportunities should be the first before you put your products or services out there. In this article, I will show you five ways to evaluate business opportunities.
Read more about Business opportunities
  1. Market Size.
Market size is the first and most important factor you must put into consideration before launching a new business or expanding your reach. The question of market size, means are there available customers? How large are they? Are they sustainable over a long time? Therefore, before starting or expanding, ensure that there is a massive market that can buy your goods and pay for your services.
  1. Relationships.
Relationships are very crucial in starting or expanding your business. The relationship could take several forms. It could be a potential investor who is willing to find you in new territories. It could be an influencer who can help you bring your goods and services into the limelight by reaching a larger audience. It could also be a standby supplier to whom you can get the affordable price of goods or a retailer, whom you can easily reach out to. Therefore, before expanding or starting, take into consideration key relations that will make your business operations smooth. 
Sign up to the Connect Nigeria daily newsletter
  1. Ability to Manage Cash Flow.
This is another crucial factor to put into consideration – the availability of capital and operational funds that can lubricate the business process. Before launching out or expanding, you ought to have in your books the capacity to fund your business without hitch. Further, you ought to know where these funds will be channelled to and the implications they will have on your business.
  1. Management Skillsets.
The next factor to be considered is the available management skillsets. This includes your skillsets and those of your team. Expanding into new markets requires a strong set of teammates who know their onions. It is not enough to have the funding, but can your management team pull through the hurdles of entry, dominating and maintaining market dominance. Studies have shown that a strong management team is a major reason why leading companies pull through. Therefore, when looking for a business opportunity to invest in, or expand into, look at the management. What talents and aptitudes do they have? Are they suitable and diversified? Do you trust the competence of the administrators to make the opportunity a success?
  1. Passion and Persistence.
Without passion and persistence, no matter how much funding and top-notch goods and services you offer, your business is headed for a sharp decline. With passion, even when sales are bad, you’re constantly inspired to push through and invent innovative solutions. Persistence is crucial because, in the face of bumpy rides, you are not deterred.  Featured image source: Techlink
Did you find this article useful? Contact us: editor@connectnigeria.com
Exit mobile version