Evaluating an Opportunity

Business opportunities are often based on broad trends, such as:

? demographic, such as the "graying" of America (creating opportunities in health services, for example);

? sociological developments, like the "green" movement, with its emphasis on recycling and environmental sensitivity, and;

? cultural changes caused by changing economic conditions and technological developments.

Opportunities can also frequently be found in current and developing business trends such as:

? the globalization of business,

? the need for outsourcing created by downsizing, and

? the burgeoning service economy.

The Internet and rapid growth of e-commerce have certainly created changes in the process of buying books and CD's, trading stock, delivering information, and bidding on collectibles. Where do you see the next process to be transformed in a major way by the Internet?

Let's do a brief case study in opportunity:

Neighborhood Coffee Shop

I live in the eastern section of town, which is growing rapidly, and food and business services are not quite keeping up. The "East" is fairly isolated from the rest of the city by water, an interstate highway, and an industrial park, forming a separate and distinct market. "People" are saying that the East desperately needs a good coffee shop. (Who are these people? Are they just in our immediate circle? Are they representative enough of the area to extrapolate from?)

Let us analyze some factors which indicate the opportunity potential of an idea:

* The "window of opportunity" is opening, and will remain open long enough.

We cannot be the only entrepreneurs that perceive these opportunities. How long before the need becomes compelling enough for others to jump in?

* Entry is feasible, and achievable with the committed principals.

Two friends want to be partners with me in a venture; one is managing a coffee shop across town, and willing to manage a startup. Between us, we could muster the capital for a coffee shop.

* The proposed venture has some competitive advantage.

We were among the first to locate in the new area, and are very active in the local business community. We know of an ideal site, and the building manager is a friend. She is willing to sub-contract the beverage and light-meal/dessert services the building provides tenants.

* The economics of the venture are "rewarding and forgiving."

Materials costs are a small percentage of revenues; site preparation and equipment costs are minimal.

* We can break even at what seems to be an easily achievable volume.

We may even want to consider a more upscale atmosphere based on what some say is the difference between a "coffeehouse" and a "coffee shop:" About two bucks a cup? A coffee shop is a place to grab a quick bite and a cheap cup of coffee.

Eric Gerber of the MSN Network's Sidewalk suggests that "A coffeehouse is a place to wax philosophical - Mozart or Bach, Faulkner or Fitzgerald, Xena or Hercules? - while seeing just how complicated you can make a simple drink like coffee: double latte espresso-chino with half decaf Jamaican Blue Mountain dark roast, extra low-fat foam and a Frangelica drizzle, please."

The conditions for starting a neighborhood coffee shop seem favorable, but there must be more that we can do to critically evaluate the venture while improving our chances of success. That "more" is market research, and do not leave the business launch pad without it!

John B. Vinturella, Ph.D. has almost 40 years experience as a management and strategic consultant, entrepreneur, author, and college professor. For 20 of those years, Dr. Vinturella was owner/president of a distribution company that he founded. He is a principal in business opportunity sites jbv.com and muddledconcept.com, and maintains business and political blogs.

---

Creativity & Entrepreneurship - Key Questions From My Students

Hello Creative Entrepreneurs!Thought for the day:"It is not easy being... Read More

Business Ideas

Richard Branson, billionaire founder of Virgin Records and Virgin Atlantic... Read More

Financial Strategies for Transitioning from Salaried to Solo

7 Financial Strategies for Transitioning from Salaried to SoloA 40's... Read More

Meet Success: Business Profile of Sylvia Acevedo, Communicard Owner

Sylvia Acevedo needed a break from her technology job so... Read More

New Rules

Last week I was working with one of my small... Read More

Franchisor Sample Grand Opening Launch for New Franchised Outlets

It is paramount that all franchising companies work hard in... Read More

3 Essential Elements of Operating a Successful Business

Have you ever imagined what it would be like to... Read More

Learn how to Compress Time

In the popular 1980's movie "Dune," man learned that by... Read More

Needs Versus Wants For Entrepreneurs

How often do the words "I need" come out of... Read More

Business Name - How to Choose One

It's very important to get your business name right. You... Read More

Find Out If You WILL Be Successful As a Franchisee?

Will I be successful as a franchisee?One of the soundest... Read More

Definition of Entrepreneur

EntrepreneurAn entrepreneur is a man who organizes and manages the... Read More

The Desire For Money, Do You Have Business Sense?

For those of us who grew up with parents who... Read More

Making the Financial Transition

Making the financial transition from paid employment to earning a... Read More

The Deal is in the Details

What Startups Need to Get a Business Loan, Part 2In... Read More

Questions For The Entrepreneur To Be

Entrepreneurial e-gnorancePart 1: Questions for the entrepreneur to beIf you... Read More

The History of the Franchise Business - Learning about Business Opportunities by Looking at the Past

Hair care has been around as long as humans have... Read More

Oil Change Guys History; Part I

How do franchise companies come to be? How do they... Read More

Outcomes - Thats What You Need to Focus On

Successful business owners and managers need to be very clear... Read More

Protect Your ASSets in Business

Many people are starting an online business without a thought... Read More

Starting Your Business: It All Boils Down To Making Money and Saving Money

Bootstrapping in the context of business start-ups refers to the... Read More

How To Grow Your Micro-Business

If you want to grow your micro-business (defined as a... Read More

The Fear Factor

I recently conducted a lil' survey asking my colleagues what... Read More

Oil Change Guys History; Part II

Franchise companies are not born they are made and when... Read More

Executive Suites - A Way To Save Cash

Cash is one of the most important resources to a... Read More

Will Your Business Survive Without You?

I had a health scare in December.As it turns out,... Read More

What Kind of Business Should I Start?

It's not uncommon to reach your 30s, 40s or even... Read More

Bonsai Marketing

Site location analysis of regional service areas and planning for... Read More

Entrepreneurial Hate, its out there

Today, I got an email from a lady who hates... Read More

Book Yourself Solid: The Simple Selling Process

As a service provider you may not want to think... Read More

Think - Dont React

How you think, your relationship with yourself is what decides... Read More

Differentiation Strategies for Franchise Companies

With the growing number of franchise offerings recently it is... Read More

Defining a R&D Framework for Entrepreneurship and Innovation on Information Product Generation

IntroductionKnowledge is the key resource that forms the institutional basis... Read More