How To Validate A New Business Opportunity
Having looked at the “3 Crucial Steps To Selecting A Profitable Business Opportunity”, we’ll today look at how to validate a new business opportunity and this is to help you narrow down on a business opportunity that is really profitable in the long run.
It should be noted that SELECTING a new business opportunity only gives you a rough idea or estimate about which business idea is best for you but VALIDATING a new business opportunity gives you more exact details about what is required as well as what to expect; you can think of it as a process where the “wheat is separated from the chaff”.
How To Validate A Hot New Business Opportunity
How To Validate A New Business Opportunity #1: Carry Out A Market Survey
This includes (but is not limited to) carrying out research to determine:
- The demand in the marketplace for your product or service
- The purchasing power of your target market
- Your competition and their marketing strategies
How To Validate A New Business Opportunity #2: Carry Out An Assessment Of Your Environments
This includes (but is not limited to) carrying out research to determine:
- The technology involved e.g. what machines or software do you need to use and is it available?
- Government policy involved e.g. is your business legal before the law?
- Resources involved e.g. do you have access to them and are they enough?
- Infrastructure e.g. is there proper infrastructure in place to help you run your new business opportunity and do you have access to it?
- Social scene e.g. what is going to be the social impact of your new business opportunity?
How To Validate A New Business Opportunity #3: Carry Out An Economic Assessment
This includes (but is not limited to) carrying out research to determine:
- The economic condition of your niche e.g. who are you targeting and what is their yearly income?
- How much you should price your products and/or services
How To Validate A New Business Opportunity #4: Carry Out A Feasibility Study
This includes carrying out research to determine whether your business is viable e.g. you can carry out:
- Technical analysis
- Financial analysis
- Social profitability
NB: We shall talk more about the feasibility study of a new business opportunity in our next post.
Last Word On How To Validate A New Business Opportunity
It’s important that you always take time to validate any new business opportunity that presents itself to you as this will shield you against wasting your precious time and effort on a business idea that isn’t as profitable as you might have once thought it was.
Although there are other methods on how to go about validating a new business opportunity; I feel the above are some of the most crucial as they touch on the most crucial areas of any given business.
As always, feel free to share what your thoughts are on how to validate a new business opportunity; I’d definitely love to hear from you!