Tips To Correctly Size Up A Business Opportunity
Most business opportunities seem like a godsend at first glance only to find out that they’re curses in disguise. If you suddenly discover or are offered with a business opportunity, here’s what you should know to prevent yourself of becoming a victim of the same fate. Tip #1 Know the Source of the Business Opportunity How did you learn about the business opportunity? Was it something you discovered by chance or research? Was it offered to you by someone you know and trust? Consider the source of the business opportunity and determine how trustworthy it is. If you know nothing about the source then you should take the necessary steps to rectify the matter. Forearmed is forewarned! Tip #2 Can You Afford to Take Advantage of the Business Opportunity? Let’s say that the business opportunity is indeed legitimate. That, however, is not reason enough for you take the plunge and sink all your money into it.
Consider your resources and ask yourself if you can truly afford to take advantage of the business opportunity. Money – How much investment is needed? Do you have it? Will you able to borrow from someone to provide the necessary funds? Time – What is the rate of return on investment (ROI)? Simply put, how long till you’ll be able to recoup your investment? Will you be able to wait that long? How much time is needed from you to ensure that everything will go according to planned? Can you afford to give up the amount of time it requires? Manpower – Will you be able to solely handle the business if and when you do decide to avail yourself of the opportunity provided? If not, do you know anyone who’s willing and able to provide the necessary skills for the job? Emotional or Moral Consequences – Will taking advantage of the business opportunity have a profound - positive or otherwise – effect on your relationship with yourself and with other people? Will taking advantage of the business opportunity cause you to have an emotional or moral conflict? Challenge – Are you up to the physical, mental, and psychological challenge that the business opportunity presents? Tip #3 Always Compute for the Opportunity Cost There are always two sides to a coin. There can be no reaction when there’s no stimulant. If you choose to take advantage of a particular business opportunity, you’re sure to sacrifice something in return. But is what you’ve sacrificed equal, less, or more than what you’ll gain once you take advantage of the business opportunity presented to you? Tip #4 Take Your Time to Decide Don’t pressure yourself into making a decision.
If you do, you’re liable to make the wrong one because you’re not thinking clearly. Allow yourself as much time as you need to ponder the matter. And if the one offering the business opportunity is also the same person pressuring you to make a decision, you should know that that’s not a good sign at all. If you’re being forced to make a decision, then go ahead…and decide to drop the matter entirely. In the end, however, it’s still your decision. If both your mind and heart have the same opinion about the business opportunity you’re considering then good! You know what to do next. If, on the other hand, they disagree then don’t, by all means, choose one over the other. Find a compromise instead to protect your interests.
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