An individual who wants to start or go into a new business must consider the following in evaluating a potential business and it's opportunity. They include:
FIRST
The individual must consider his managerial skills in the business and that of the people he wishes to employ if it is a large organization. He should question himself on his capacity and ability to/in managing the business, and if the persons he wishes to employ has the functional background and skills to bring the project to light.
SECOND
The product/service and market should be evaluated. Evaluating the product/service would aid the business owner know the following: if it would be of any value to their potential customers in the market and if the product is in existence would it have a competitive advantage.
In evaluating the market, the business owner should access whether the market is in need of the product, how close the raw materials is to the market, whether the market is large enough for the business to be profitability, if the market is growing fast.
THIRD
A new business owner should evaluate the risks of the business before investing in it. This would aid in accessing if the business is worth investing in or not.
FOURTH
After considering the managerial skills, market, product and risk bearing. The business owner should access the return on investment. This would allow the business owner know if the profit from the business is more than the funding. If otherwise, the business owner would have to reconsider before investing in the business.
FIFTH
An important accessment in evaluating a business opportunity is the prospective customer, their interest in the product, what they think of the product and how relevant the product is to them.
SIXTH
Competition in the market is relevant in accessing a business opportunity. This would enable the business owner know if/how to invest in the new business in other to hold off other competitors when it enters the market.
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