What factor do you look at when evaluating a potential business opportunity to determine whether or not it is right for you, and why?
These answers are provided by the Young Entrepreneur Council (YEC), an invitation-only organization made up of the world’s most successful young entrepreneurs. YEC members represent nearly every industry, generate billions of dollars in revenue annually and have created tens of thousands of jobs. More information at yec.co.
1. Whether it aligns with your current goals
Many entrepreneurs fall victim to the ‘shiny object syndrome’. There are endless possibilities and countless directions you could have chosen, but you’ll never get anywhere if you don’t stick to one path. Ask yourself if this opportunity aligns with your goals at this time. If not, leave it for later.
– Solomon Thimothy, OneIMS
2. How much value you can add
With the amazing amount of options out there, saying “no” should happen a lot more than saying “yes.” But when you’re ready to say yes, a key factor should be how much value you can add to the project. How much does it mean that you are involved in this opportunity? If the answer is “not much,” think about what happens when things get tough and you can’t help or you lose a team member.
– Brandon Harris, playmaker
3. If you really want to do it
I try to evaluate business opportunities in terms of: Do I want to do this, and why? It’s easy to get distracted by things we “have” to do or by things that seem easy or quick. But none of that matters if you don’t really want to do it.
– Ryann Dowdy, Uncensored Advice, LLC
4. If it matches your long-term vision
Being too opportunistic with new deals is a quick way to lose sight of your real goals. It’s a matter of chasing after shiny objects that spread your focus too thin and only give you a light impact from each campaign. Instead, look for projects and campaigns that can have deeper integration with your overall business so that it continues to drive value.
– Firas Kittaneh, Amerisleep Mattress
5. Whether there is a market for it
When considering a new business opportunity, look at what the demand is and what your competition will be. Once you have a clear idea of the demand, you can decide whether a business idea is worth pursuing. Looking at your competition can also help you better understand demand and see where improvements can be made.
– Brian David Crane, spread great ideas
6. If you are satisfied with the cash flow forecasts
We are regularly approached to resell and support accounting software and third-party applications that connect to that software. The first exercise we do is look at how much cash (not profit) we will bring in over the next five years, building in margins, commission costs and processing charges. Overall, if we can achieve positive cash flow within six months, it’s a winner!
– Marjorie Adams, Fourlane
7. If you have the bandwidth
Do you have the bandwidth to give the chance 110%? If you’re taking on something that’s a risk or has been proven to generate more revenue, it’s best to pass on if you don’t have the bandwidth. As an SEO agency, we receive many requests that are beyond our scope. We consciously grow our products and services and know when to succeed, even if the bottom line would be boosted.
– Matthew Capala, Alphametic
8. How much the work inspires you
Always make sure your work inspires you. I’ve made the mistake in the past of investing in what was clearly a good opportunity but didn’t motivate or excite me. Even though it was a profitable venture, the extra time and emotional strain that came from working on something I wasn’t inspired to work on almost caused the venture to fail and wasn’t really worth the eventual profit.
– Salvador Ordorica, the Spanish group LLC
9. How compatible you are with the other party
For me, a serious consideration is how compatible I am with the supplier, customer or business partner. It is very important that we have the same objectives and that we are on the same page. I like to get to know someone for about a year before starting a business venture or project with them. I have found this to be the key to my success and wouldn’t do it any other way.
– Syed Balkhi, WPBeginner
10. How it will help you scale your core business
When evaluating new opportunities, I ask myself how this opportunity will help me scale my core business. I look for complementary ideas that can be easily integrated, systematized and scaled without a lot of additional resources. These types of opportunities are worth pursuing because they can grow my current business exponentially. Opportunities that don’t fit this filter are often distractions.
– Shaun Conrad, my online accounting course
11. When you feel a level of passion
When considering a potential business opportunity, it’s important to think about your passion. If it isn’t there, you will likely find it difficult to stay motivated and keep going during stressful times. Before you decide to take on a business opportunity you may not be prepared for, think about how invested you really are.
– Stephanie Wells, Formidable Shapes
12. How it will affect your audience
When I consider a business opportunity, the first thing I think about is how it will improve or hurt the relationship I’ve built with my audience. We’ve all seen companies make bad partnership decisions and ruin the goodwill they had with their audiences. I never want to end up in that position, so I like to weigh my options carefully.
– John Brackett, Smash Balloon LLC