Question

Question 4 identify the business factors and the related questions one would ask to evaluate an opportunity

Answer 1

Business factors and related question which one would ask to evaluate an opportunity are:

• Access to Customers

Related Question: The availability of customer for the product or service you are going with in the market, the cost of reaching to customers etc.

It is possible that the customers are present in market but as a business you have to reach them efficiently and quickly, how will you do that?

• Size of the market

Related Question: The size of the market really matters as far as evaluation of opportunities is concerned. If the market size is so small than even the biggest opportunities may not drive us to take up the opportunity.

• Passion

Related Question: It requires passion and energy to enter the market by seeing the opportunities and capitalizing on it, possibilities are in the initial stages you may face loses and get demotivated. A passionate person here will fight for survival whereas a person who just entered the market for earning quick profit just by liking at the opportunities just after initial hardships. Thus passion becomes an important ingredient while evaluation business opportunity and the concerned person should definitely ask am I passionate enough before getting into the market.

• Finance/Cash Generation

Related Question: It is a possibility that the business scenario may look lucrative but are you able to harness that opportunity? Do you have the required funds? Can you borrow it? How will you repay it? Will you be able to generate enough cash to repay it?

• Relationships

Related Question: Having existing relationship in the market with customers, suppliers, opinion leaders, shop owners etc. are beneficial and can provide you an edge over others. Do you have it? How will you utilise those relationships?

The above questions should be asked while evaluating business opportunity.