1. Is the new idea within my domain of experience and knowledge?
If a great deal of time must be spent on learning about a new technology or how a process is to work or attempting to find a suitable market, the chances for doing an appropriate evaluation are very much decreased.
2. Is the opportunity somewhat consistent with my goal plan or my company ‘s mission and strategy?
The new idea may require changing tactics or undertaking a different course of action. For the first-time entrepreneur, opportunity may be the only mission at hand. For a company, it is far easier to work with its with 3M’ s business purpose.
3. Is there a sufficient pay-back to the opportunity? Will it justify the investment of time and money?
Obviously the size of anticipated profit from a new idea is variable and very much dependent on markets. For most, a return of 30-40 percent or more is not an unusual expectation. Companies often select new ventures on the basis of recovering the investment in two or three years.
4. Is it truly feasible?
This question really leads to inquiring whether there people or a system to carry out the venture and make it work. Given a positive answer, the entrepreneur can then move on to building a business plan.
Now the factors identified in the opportunity evaluation can be extended and tested. Here the key issues include
.sufficient market demand from clearly identified segments
.reasonable stability or consistency in the uncontrollable variables of government and legal factors, competitor action, economic conditions, etc
.solid ability to exploit the opportunity
Zenas Block, in his Success magazine article of March 1994, observes, “when managed right, venturing can be the key to growth. You should constantly be evaluating the right questions, any firm can expand the reach of its success.”
1. Is the new idea within my domain of experience and knowledge?
If a great deal of time must be spent on learning about a new technology or how a process is to work or attempting to find a suitable market, the chances for doing an appropriate evaluation are very much decreased.
2. Is the opportunity somewhat consistent with my goal plan or my company ‘s mission and strategy?
The new idea may require changing tactics or undertaking a different course of action. For the first-time entrepreneur, opportunity may be the only mission at hand. For a company, it is far easier to work with its with 3M’ s business purpose.
3. Is there a sufficient pay-back to the opportunity? Will it justify the investment of time and money?
Obviously the size of anticipated profit from a new idea is variable and very much dependent on markets. For most, a return of 30-40 percent or more is not an unusual expectation. Companies often select new ventures on the basis of recovering the investment in two or three years.
4. Is it truly feasible?
This question really leads to inquiring whether there people or a system to carry out the venture and make it work. Given a positive answer, the entrepreneur can then move on to building a business plan.
Now the factors identified in the opportunity evaluation can be extended and tested. Here the key issues include
.sufficient market demand from clearly identified segments
.reasonable stability or consistency in the uncontrollable variables of government and legal factors, competitor action, economic conditions, etc
.solid ability to exploit the opportunity
Zenas Block, in his Success magazine article of March 1994, observes, “when managed right, venturing can be the key to growth. You should constantly be evaluating the right questions, any firm can expand the reach of its success.”
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