When evaluating a potential business opportunity, what factor do you look at to determine whether or not it’s right for you, and why?
These answers are provided by the Young Entrepreneur Council (YEC), an invite-only organization made up of the world’s most successful young entrepreneurs. YEC members represent nearly every industry, generate billions of dollars in revenue each year and have created tens of thousands of jobs. Learn more at yec.co.
1. Whether it aligns with your current goals
Many entrepreneurs fall victim to the ‘glossy object syndrome’. There are endless possibilities and countless directions you could have chosen, but you will never get anywhere if you don’t stick to one path. Ask yourself if this opportunity aligns with your goals right now. If not, leave it for later.
-Solomon Thimothy, OneIMS
2. How much value can you add?
With the amazing amount of opportunities out there, saying ‘no’ should happen a lot more than saying ‘yes’. But if you’re ready to say “yes,” an important factor should be how much value you can add to the project. How much does it cost to get involved in this opportunity? If the answer is “not much”, consider what happens when the going gets tough and you can’t help or if you lose a team member.
-Brandon Harris, playmaker
3. If you really want to do it
I try to assess business opportunities in terms of do I want to do this and why? It’s easy to get distracted by things we “have to” do or by things that seem easy or fast. But none of that matters if you don’t really want to do it.
– Ryann Dowdy, Uncensored Consulting, LLC
4. If It Matches Your Long-Term Vision
Being too opportunistic with new deals is a quick way to lose sight of your real goals. It’s a matter of chasing after shiny objects that spread your focus too thin and leave you with only a slight impact from each campaign. Instead, look for projects and campaigns that can integrate more deeply with your overall business so it continues to generate value.
– Firas Kittaneh, Amerisleep mattress
5. Is there a market for it?
When considering a new business opportunity, consider what the demand is and what your competition will be. Once you have a clear idea of the question, you can decide whether a business idea is worthwhile or not. Looking at your competition will also help you understand demand and see where improvements can be made.
– Brian David Crane, spreading great ideas
6. If you are happy with the cash flow forecasts
We are regularly approached to resell and support accounting software and third-party applications that connect to that software. The first exercise we do is see how much cash (not profit) we’ll be bringing in five years from now, building in margins, commission costs, and a processing charge. Overall, it’s a winner if we can be cash flow positive within six months!
– Marjorie Adams, Fourlane
7. If you have the bandwidth
Do you have the bandwidth to give the chance 110%? If you’re going into something that’s a risk or has been proven to generate more revenue, it’s best to move if you don’t have the bandwidth. As an SEO agency, we get a lot of requests that are out of our reach. We consciously grow our products and services and know when to succeed, even if the result could be boosted.
– Matthew Capala, Alphametic
8. How much work inspires you?
Always make sure that your work inspires you. I’ve made the mistake of investing in what was clearly a good opportunity in the past, but one that didn’t motivate or captivate me. Even though it was a profitable venture, the extra time and emotional effort that came from working on something I hadn’t been inspired to work on almost made the endeavor fail and the ultimate gains not really worth it.
-Salvador Ordorica, The Spanish Group LLC
9. How compatible are you with the other party?
For me, a serious consideration is how compatible I am with the supplier, customer or business partner. It is very important that we have aligned goals and that we are on the same page. I like to get to know someone for about a year before starting any business venture or project with them. I have found this to be the key to my success and would not do it any other way.
– Syed Balkhi, WP Beginner
10. How It Will Help You Scale Your Core Business
When I evaluate new opportunities, I wonder how this opportunity will help me scale my core business. I look for complementary ideas that can be easily integrated, systematized and scaled without a lot of extra resources. This kind of opportunity is worth pursuing because it can grow my current business exponentially. Opportunities that don’t fit into this filter are usually distractions.
– Shaun Conrad, my online accounting course
11. When you feel a level of passion
When considering a potential business opportunity, it’s important to think about your level of passion. If there isn’t one, you’ll probably find it hard to stay motivated and keep going through stressful times. Think about how invested you really are before deciding to seize a business opportunity that you may not be prepared for.
– Stephanie Wells, formidable shapes
12. How will it affect your audience?
When I consider a business opportunity, the first thing that comes to mind is how it will improve or harm the relationship I’ve built with my audience. We’ve all seen companies make bad partnership decisions and ruin all the goodwill they had with their audiences. I never want to end up in that position, so I like to weigh my options carefully.
-John Brackett, Smash Balloon LLC
This post Is a business opportunity for you? 12 factors to consider was original published at “https://www.noobpreneur.com/2022/03/30/is-a-business-opportunity-right-for-you-12-factors-to-consider/”