Lesson 4: Opportunity Screening Flashcards
In screening opportunities, the entrepreneur first has to consider his or her preferences and capabilities by asking three basic question:
- Do I have the drive to pursue this business opportunity to the end?
- Will I spend all my time, effort, and money to make the business opportunity work?
- Will I sacrifice my existing lifestyle, endure emotional hardship, and forego my usual comforts to succeed in this business opportunity.
The 12 Rs of Opportunity Screening
- Relevance to vision, mission, and objectives of the entrepreneur
- Resonance to values
- Reinforcement of Entrepreneurial Interests.
- Revenues
- Responsiveness to customer needs and wants
- Reach
- Range
- Revolutionary Impact
- Returns
- Relative Ease of Implementation
- Resources Required
- Risks
The opportunity must be aligned with what you have as your personal vision, mission, and objectives for the enterprise you want to set up.
Relevance to vision, mission, and objectives of the entrepreneur
Other than vision, mission, and objectives, the opportunity must match the values and desired virtues that you have or wish to impart.
Resonance to values
How does the opportunity resonate with the entrepreneur’s personal interests, talents, and skills?
Reinforcement of Entrepreneurial Interests
In any entrepreneurial endeavor, it is important to determine the sales potential of the products or services you want to offer. Is there a big enough market out there to grab and nurture for growth.
Revenues
If the opportunity that you want to pursue addresses the unfulfilled or undeserved needs and wants of customers, then you have a better chance of succeeding.
Responsiveness to customer needs and wants
Opportunities that have good chances of expanding through branches, distributorships, dealerships, or franchise outlets in order to attain rapid growth are better opportunities.
Reach
The opportunity can potentially lead to a wide range of possible product or service offerings, thus, tapping many market segments of the industry.
Range
If you think that the opportunity will most likely be the “next big thing” or even a game-changer that will revolutionize the industry, then there is a big potential for the chosen opportunity.
Revolutionary Impact
It is a fact that products with low costs of production and operations but are sold at higher prices will definitely yield the highest returns on investments. Returns can also be intangible, meaning, they come in the form of high profile recognition or image projection.
Returns
Will the opportunity be relatively easy to implement for the entrepreneur or will there be a lot of obstacles and competency gaps to overcome?
Relative Ease of Implementation
Opportunities requiring fewer resources from the entrepreneur may be more favored than those requiring more resources.
Resources Required
In an entrepreneurial endeavor, there will always be risks. However, some opportunities carry more risks than others, such as those with high technological, market, financial, and people risks.
Risks
