How to Assess Business Opportunities

Ideas and opportunities need to be screened and assessed for viability once they have been identified or generated. This is not an easy task, and yet at the same time, it is so important.

It can make the difference between success and failure, between making a fortune and losing everything you had. Whilst the exercise does not guarantee success but then nothing in this world does, except divine intervention – it certainly helps in minimizing the risk and thus the odds for failure.

Identifying and assessing business opportunities involves, in essence, determining risks and rewards/returns reflecting the following factors:

Industry and market: Is there a market for the idea? Are there any customers – people with money who are able and willing to buy the product or service? Can you provide what they need or want? How many are there?

Length of the window of opportunity: Can you create or seize the opportunity whilst it lasts?

Personal goals and competencies of the entrepreneur: Do you really want to venture into the business? Do you have what it takes? Are you motivated enough?

Management team: Who else will be involved with you in the business? Do they have the experience, know-how, contacts, or other desirable attributes required?

Competition: Who are your competitors? Do you have something customers want that your competitors do not have? For example, can you produce or market at lower costs?

Capital, technology, and other resource requirements: How much capital, technology, or other resources are required? Do you already have them or cold you get them?

Environment: Are the political, economic, geographical, legal, and regulatory contexts favorable? Will the business do any damage to the physical environment?

The above questions are typical of the type of issues that need to be addressed. Responses to these questions will determine the attractiveness of any business opportunity.

There are diverse opportunities in the following areas;

1. Stone and Mineral based industry
2. Chemical and Allied industry
3. Petroleum industry both upstream and downstream
4. Mechanical and metallurgical industry
5. Electrical industry
6. Electronic industry
7. Forest-based industry
8. Agro-based Allied industries
9. Rubber-based industry
10. Leather industry
11. Water resources based opportunities
12. Service industry
13. Miscellaneous activities such as Pharmaceutical, paper processing e.t.c.

Photo by Lara Jameson from Pexels