8
Simple Rules for Rating A Small Business Opportunity
- Beta Test It: As any successful software
developer knows, a beta test gets your product in the hands
of users early for critical feedback. Do not keep your idea
secret. Share it with a select group of potential users.
Without real-world feedback your business opportunity will
quickly hit the wall.
- Find The Target: Far too many small businesses
fail trying to be everything to everybody. Maybe your idea
has potential in multiple markets, but start with one target
with the greatest need. Your business opportunity should
grasp the attention of a specific and reachable market.
'Female teenagers who read religious books and media' is
much more definitive group than 'all teenagers who have
spiritual interests'.
- Apply Protection Armor: A new business
opportunity is a delicate thing. In order to protect and
nurture your business you will need to apply some form of
protection armor. This armor will provide assurance that
no company can invade and steal your market share. Protection
Armor can take the form of exclusive contacts, licensing,
patents, or the best location on the block.
- See What They Want: Ultimately, business
comes down to the simple task of providing a product or
service people need. Simple, yes but often overlooked. Your
business opportunity is rated high if it meets a customer's
needs or wants. There may be an open market for a new form
of toothpaste, but if consumers do not want another choice
of toothpaste, then success will be fleeting.
- Play The Money Game: Every small business
opportunity needs to be evaluated against the cost of building
the business. The opportunity can be great, however, if
you are not prepared to go out and raise the million required
for launch, then this opportunity is not for you. The best
business opportunity is one that matches your ability to
deal with and raise attainable cash.
- Bring Your Skills To The Table: A business
opportunity can have an incredible upside only if you bring
the skills required to succeed. If the business requires
you to go way outside your comfort zone, it may be better
to find something that more closely mirrors your skills.
Ten years of retail experience can offer much more chance
of success than an opportunity based on telemarketing skills.
- View The Event Horizon: In the near
future, what is the likelihood your business can be replaced
by technology, impended by government regulations, or made
obsolete by social changes. Perform a quick SWOT analysis
to see how your small business opportunity will survive.
It may not be realistic to start a music store during the
peak of digital piracy.
- Use the People Factor: Many business
opportunities will require a motivated and skilled workforce.
Make sure you can fulfill this equation or it will be the
one critical success factor that will make or break you.
Remember, good people are hard to find. Ponder how you will
gain and retain them.
Did your business opportunity meet the 8 simple rules?
If not, do not despair. It may just mean you need to tweak
the idea into a marketable, viable form. Once your opportunity
is set in a firm foundation, you can now apply your passion
and fire to lift your business to where you want to go.
Source: http://sbinformation.about.com/cs/businessplans/a/8rules.htm
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