An opportunity is an opening in the environment that when exploited can create economic value. Exploiting an opportunity involves risk and resources commitment that makes it necessary to make informed decisions when committing to an opportunity.
Low capital requirement
A good business opportunity should be cheap to finance. Access to capital is a major impediment to entrepreneurship implying that entrepreneurs should focus on ideas that are cheap to finance. Entrepreneurs exploit financing methods such as loans, venture capitalists and contributions from friends and family among others. Capital suppliers are reluctant to finance new businesses with huge capital requirements.
A good business opportunity is one that aligns with the individual’s passion. The founder’s motivation is a key determinant of the success of a start-up. A passionate founder has an internal motivation towards building a bright future for the business. As a result, such a leader creates a clear vision and mission statements and uses them to motivate stakeholders towards organisational goals.
Matches individual skills
Individual’s capabilities are a key determinant of the fitness of a business proposal. A good business proposal aligns with the entrepreneur’s skills that ensure conversance with the intricacies of the business process.
Growing a business is one of the principal goals of an entrepreneur. It is therefore paramount to ensure the scalability of an opportunity before committing resources. A good business opportunity’s growth regarding profitability, revenue, size, and other yardsticks of evaluating growth are verifiable.
Reflect environmental realities
A business opportunity should be relevant to the prevailing environment. The business environment is dynamic, and entrepreneurs should understand how changes in the environment affect customer needs and business operations. An entrepreneur should have a deep understanding of the environmental trends to ascertain the opportunity’s long-term viability.