Business ideas, opportunities and evaluation
The analysis of a business idea to be able to pass a test to determine if it really is a valid opportunity. All your ideas should meet three main lines, fill a demonstrated need, have a good market and the ability to provide a solid return on investment.
Is the idea viable in the market? Is there a demand? Can it be done? Are you able to bring people and resources to carry out before the window of opportunity closing? These questions must beconsidered and answered.
Successful entrepreneurs focus on the opportunities beginning with the customer and the market in mind. They analyze the market to determine industry issues, market structure, market size, growth rate, market capacity, market share as possible, the cost structure, the basic economics, strategy issues output equilibrium time, the opportunity costs, and barriers to entry.
Below are the business model used to evaluate their business ideas and plans. The model of “The Fourteen Questions”
To evaluate opportunities, entrepreneurs ask the following questions:
1 . What is the need to fill or problem to solve? (Value Proposition)
2 . Who do you sell to? (Target Market)
3. How to make money? Model (income)
4 . How will you differentiate your business from what is already there? (Unique Selling Proposition)
5 . What are the barriers to entry?
6 . How many competitors have and what quality are they? (Analysis of Competitiveness)
7 . How big is your market in dollars? (Market size)
8. How fast is the market growing or shrinking? (Market growth)
9 . What market share do you think would win? (Market share)
10 . What kind of company would this be? (Lifestyle Company or high potential individual or corporation)
11 . What does it cost to start? (Start-up costs)
12 . Do you plan to use debt capital or raise investment? If so, how much and what kind? (The investment needs)
13 . Do you plan to sell your company or go public (list the company on the stock markets) one day? (Exit Strategy)
14 . If you take on investment, how much money you think your investors will get in return? (Return on Investment)