What sets good entrepreneurs apart from the successful ones is their willingness to try different business opportunities. They’re able to diversify investments, reduce financial risks, and increase entrepreneurial knowledge and experience with this bold, risk-embracing attitude.
But then, pursuing a business potential won’t do anything good if you yourself don’t know how to spot one. What makes a good opportunity? How do you know if something is worth pursuing? When you see these signs, then it’s definitely worth answering to that knock of opportunity:
1. The business answers a need
When you’re presented with an opportunity — let’s say, a distributor deal or a franchise ownership arrangement, always ask yourself if it makes things easier for customers to solve a problem. This is the first test when evaluating the value of a business opportunity. If it doesn’t pass, then it’s worth passing up on such a deal.
Now, it’s a bit tricky to know whether something indeed meets a need. Many entrepreneurs mistakenly dismiss a good opportunity because they didn’t think it would appeal to their target market. The truth is the only person that could tell that if something fulfills your market’s needs is your market themselves. To get an accurate evaluation and to know the pulse of the people, organize a survey or a group discussion. You can also consider getting a franchise, exploring — let’s say, a subs franchise opportunity — so you can already secure a sure market.
2. The business can operate at your location
Simply because an opportunity solves a problem doesn’t mean it can solve a problem at your location. Demand is dependent on the geographical and economic context, and your locale is another consideration when evaluating a business potential.
This is most relevant to food businesses, in which store locations matter in the overall customer experience. One way you can test the feasibility of a location is to look at your possible competitors. If you’re planning to push through with that sandwich franchise, pay a visit to the same stores in your community. Estimate how many people are going. Check if you can offer something the local market needs, but the competitor doesn’t offer. You can create a niche from that insight.
3. The business aligns with the trends
Trends become a trend because they’re relevant. If an opportunity allows you to be at the consciousness of your target audience’s market, then it’s worth pursuing.
Be on the lookout for trends — read industry publications, set up your Google Alerts, follow thought leaders on social media and attend their talks, surround yourself with business aficionados and seasoned entrepreneurs, and find mentors who can give you good advice on different business opportunities. This is the advantage of starting entrepreneurs who choose to go franchising. They get to have easy access to materials and expert insights first hand.
Again, it’s not enough that you have that risk-embracing attitude and are trying different business opportunities. You have to be smart in choosing and pursuing. Take note of these signs of good business potential and when you see them, waste no time and grab that opportunity. You can also seek help from business consultants like Black Sheep Business Consulting.