Every first-time founder struggles to identify the right entrepreneurial opportunity to pursue.
We get stuck wondering things like, ‘’How can I turn my passion into a viable business?’’ or ‘’Out of the million-and-one brilliant ideas I have, which one am I uniquely positioned to go all in with?’’ When you’re unsure what to do, it’s hard to move forward.
The good news is, you can easily bring order to the chaos by identifying the criteria for evaluating whether your business idea translates into a great business opportunity.
In this post, I’ll define the term ‘’opportunity’’ and provide three key points to consider when deciding what ideas are worth pursuing. I hope that this will give you a roadmap so you can get started with choosing the right idea to pursue and move forward on your entrepreneurial journey with confidence.
What is the perfect approach for evaluating entrepreneurial opportunities?
An entrepreneurial opportunity is a set of circumstances or conditions that create a favorable environment for the creation, development and success of a new business venture.
In other words:
It represents a gap or need in the market that an entrepreneur identifies and seeks to address through innovation, creativity and strategic thinking.
An entrepreneurial opportunity can be distinguished from a mere business idea in three major ways.
#1 – It Solves a Real, Recurring Problem
A recurring problem is an issue or challenge that occurs repeatedly over time. It’s not a one-time occurrence but rather a persistent or cyclical issue that requires attention or resolution on a regular basis. Recurring problems can exist in various contexts, such as in personal life, business operations, societal issues, or technological challenges. Addressing recurring problems often involves identifying underlying causes and implementing sustainable solutions to prevent or mitigate their recurrence.
This is a crucial component because a recurring problem ensures a constant demand for the solution, which translates to ongoing opportunities for revenue generation and growth. This recurrent nature creates a built-in customer base and fosters long-term viability for the business.
Many people who are new to entrepreneurship start out on the right track but then get stuck because their solution only solves the customer’s problem once, and they are unable to maximize the Lifetime Value of the relationship (usually after investing significant money and time in customer acquisition)
And then they wind up with a business that makes limited revenue and requires constant, ongoing efforts to generate sales.
The key to nurturing a sustainable, growing business is to pick a problem that is real and requires a recurring solution.
To get started here, observe and listen. Pay close attention to your surroundings, whether it’s your personal life, your workplace, or your community. Listen to people’s complaints, frustrations, and challenges. Often, recurring problems manifest as common grievances or persistent issues that people encounter.
#2 – It is Feasible and Capable of Execution
An entrepreneurial opportunity demonstrates feasibility and a clear path to execution. This involves assessing factors such as resource availability, technological feasibility, regulatory considerations, and competitive landscape.
If you’ve spent hours thinking and talking about your business but something still feels off – like you’re not making headway, this is likely the piece that’s missing.
Without this, you can pitch, plan and promote the business idea as much as possible and still not have the capabilities, resources, and expertise to turn the idea into a viable business venture.
What can you do?
A really useful technique for ensuring your idea is capable of execution is conducting a feasibility analysis.
A feasibility analysis is a thorough study of the viability of a proposed project or business venture, assessing its potential for success based on factors such as financial, technical, legal, and market considerations. It helps determine whether a project is worth investing time, money, and resources into, and identifies potential obstacles and opportunities.
#3 – The Opportunity is Scalable and Has Growth Potential
An entrepreneurial opportunity has the potential for scalability and sustainable growth. This means that the idea can be expanded or replicated to serve a larger market, generate increasing revenues, and achieve long-term success.
Here’s where you’ll really start to separate the wheat or ‘’the right opportunity’’ from the chaff or ‘’mere business idea.’’
Of course, achieving scalability will take some time. Consider the following workarounds:
- Building a strong online presence to reach a wider audience
- Developing strategic partnerships or collaborations
- Continuously iterating and improving products or services
- Leveraging technology and automation to increase efficiency
These strategies can help the business sustain itself and eventually achieve scalability.
Putting it All Together for Your Perfect Opportunity
There you have it! The 3 components of your perfect opportunity.
It may sound like a lot, but like most things practice makes perfect. You can start with the feasibility analysis. This will help ensure you have a realistic plan for implementation and have the right resources to pursue the opportunity.
Best of luck finding the right opportunity!
