The business opportunity, what is an opportunity? We mentioned in passing when we were discussing the internet as a source of business idea fact, did stress the fact that you may even also discover a
business opportunity on the internet.
Let us make very clear, however, that it is not only on the internet that one may find a business opportunity; only perhaps the latest source made available by the
advancement in information technology in fact business opportunities abound everywhere in the economy.
What is a business opportunity?
A business opportunity may be defined simply as people, (individuals or groups), institutions, organizations who have needs, wants, or desires to fill have the purchasing power (
money to spend), and are willing to spend to satisfy those needs, wants, and desires, in other words, a business opportunity consists or market, which can be profitably exploited with a defined given level of investment.
Business opportunities are daily springing up in all the sectors of the economy as the nation’s population increases and new communities are established.
Determinants Of A Business opportunity
The existence of a business opportunity is very crucial in actualizing a good business idea. It is very natural, therefore, that you would want to know some of the key factors that can help you to quickly determine
the existence of a business opportunity. Very briefly, these include the following:
The Size of the Potential Demand
How large is the size of the potential market that you have identified for your chosen product or service idea? You would want to determine this in terms of such factors as the actual limits of the market, the geographical size, the characteristics of the population.
that makes up the market, their income levels, the intensity of the use of similar products or services as the ones that you plan to offer, the potential for stimulating further demand through various
promotional activities, etc.
The Extent and Quality of the Current Products or Services Being Offered
The extent and the quality of the products and services currently being offered to the market by the firms in the industry (that is, the quality of currents competition), is also a determinant of a businesses opportunity.
If the extent is limited or the quality I am low, this will mean that a real prospect exists for you enter the market with your planned product or service.
This can also,even enable you to gauge or define this share of the potential market’s total sales that you could obtain for your new business.
The Cost of Developing and Marketing the Planned Product or Service
How much money would you require to develop your planned product or service and to market it to the identified market? This consideration is also a crucial
determinant of a business opportunity.
If the costs are prohibitive, then you will not be able to effectively present the product or service with which you intend
to exploit the identified market.
The inability to think very carefully through this consideration could lead to certain fatal weaknesses later when you have established your business.
For example, the business might not be able to remain competitive because of very high costs of production,or you may even have low production costs but the costs of entering the market might simply be too high.
Or still, it could even be that you may not have realized that you would have to depend on other producers over whom you have no control for the supply of certain crucial components for your own product or service.
The Relationship between A Business The Idea And A Business Opportunity
Having a very good business idea in itself is not sufficient. Rather, what is, perhaps, more important is whether that business idea has enough potential to be the basis for starting and building a new business.
In other words, is there a business opportunity that can be profitably exploited by a business established on the basis of the business idea?
If there is no such business opportunity, then the idea is not worthwhile.
For example, if the potential market is too small, then it will not be profitable to invest in it. So, a good business idea must be complemented by a good business
opportunity, and vice versa.
Selecting A Match Of Business Idea And A Business Opportunity
In the light of what we have just discussed above, there is the need to consider certain factors when selecting a match of a business idea and a business opportunity. Some of these factors include:
Personal Interests
Your personal interests are really paramount in choosing a business idea. You must be genuinely interested in a line of business before going into it or else you will not be able to sustain your efforts.
Establishing and building a new business is a way of life and only your genuine interests in that field can engender the total commitment that is so vital for success.
Personal Capabilities
A business is built upon skills, knowledge,
experiences, and a host of other attributes.
These may be technical, marketing, financial, etc, in nature. You should determine whether you have the necessary skills or whether you can acquire them through learning.
Co-Sponsors
The personal skills and capabilities of your co-sponsors in the proposed business must also be considered.
This is to ensure that the required skills
for the business are fairly distributed amongst them, as not every one of them needs to have the same skills.
Your Weaknesses and those of your co.
Sponsors
It is important as well to know your own
weaknesses and those of your co-sponsors.
The idea is that you should build on those strengths that are desirable for the success of the proposed business rather than on weaknesses.
Capital
Capital is needed for promotional expense
working capital, fixed capital, and other important requirements. You should ensure that enough of it available for your proposed business.
