How to verify the viability of a business opportunity

It is convenient that by means of a brief questionnaire we are able to verify the viability of a business opportunity. The following are some of the main questions to be taken into account.

Is there a market for my business opportunity?

If we do not have a real market in which to position our product or service, there is no real market. business opportunity. We need customers if we want profitability. Therefore, the first thing we need is an analysis of our customer (buyer persona) to verify if he fits in the current market or if there is a gap yet to be explored in which we can fit him.

Basically, questions of this type need to be solved: 

• Who is my customer?
• What does my customer want?
• What does my customer expect?
• When does my customer want to buy?
• What price is my customer willing to pay?

If there is a market, what other businesses compete with me?

It is essential to know the current state of the market. It is necessary to evaluate whether the product or service you want to introduce is already covered or whether there is already a product that replaces it. Establishing before launching a product or service the competitive framework you are facing will provide a better understanding of the needs you are trying to cover, paying special attention, for example, to the pricing strategy.

In any case, you need to work on those points that make you a different competitor in the market. If you offer the same as everyone else, why should they buy only from you?

Is the industry attractive enough to launch a business?

Understanding the industry will help you consider the levels of risk that exist when entering and positioning your brand. In this sense, it is advisable to analyze whether the industry or sectors The company is growing, measuring the strength of its suppliers, knowing which products are substitutes or which are the main barriers to entry.

Likewise, it is important to be aware of the regulations and standards that govern the industry we want to access. On many occasions, the commercial directives of the countries implement new standards to regulate the products and services available. Precisely these transition stages can be a great opportunity to launch your product or service.

The main risks when undertaking a business opportunity are the following:

Top 5 risks when approaching a business opportunity

Internal risks

At this point it is necessary to analyze whether the necessary means are available to start the activity, as well as the means for growth or expansion.

Technological risks

At this point it is necessary to study whether the necessary investment in technology will compensate for the time spent in developing a given product or launching a service. The use of agile methodologies to create and test products and services more quickly is very common. In addition, the intellectual property issues that may arise must be taken into account. 

Market risks

Analyzing market behavior is essential to determine the willingness of customers to purchase a product or service and, in case of success, to determine whether competitors can easily imitate the business opportunity. In an ever-changing market, a commitment to continuous innovation can slow down competitors' "copies". 

Financial risks

Related to point 1, before undertaking any business opportunity, it is essential to determine the minimum capital required to start it up. And if the necessary capital is not available, to know what mechanisms are available to raise the necessary amount.