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What are the key criteria for screening and selecting the most promising opportunities?

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Entrepreneurial opportunity analysis is a process of identifying and evaluating potential business ideas that can create value for customers, society, and the entrepreneur. It involves applying various criteria and tools to assess the feasibility, desirability, and viability of different opportunities. In this article, you will learn what are the key criteria for screening and selecting the most promising opportunities, and how to apply them in practice.

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1 Market demand

One of the first criteria to consider is the market demand for the opportunity. This means estimating the size, growth, and characteristics of the potential customers who would benefit from the solution you are offering. You can use various methods to research the market demand, such as surveys, interviews, observations, or secondary data sources. The goal is to validate that there is a real problem or need that your opportunity can address, and that there are enough customers who are willing and able to pay for it.

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David Schreiber

Business Advisor & Author @ MuvMii | Change Management, Leadership Consulting
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Also identify "What is your sales channel?" & “How will our offering reach our customers?” If you have an offering your customer wants, and it’s both distinctive and aligned with your brand, then you need to get it to your customer the simplest way possible. What sales channels offer the shortest path to ensure your customer gets what they want?

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2 Competitive advantage

Another important criterion is the competitive advantage of the opportunity. This means evaluating how your solution differs from the existing alternatives in the market, and what value proposition you can offer to your customers. You can use various tools to analyze the competitive advantage, such as SWOT analysis, Porter's five forces, or value chain analysis. The goal is to identify your unique selling points, your strengths and weaknesses, and the opportunities and threats in the market.

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David Schreiber

Business Advisor & Author @ MuvMii | Change Management, Leadership Consulting
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I love Porter, that said today we need to go further with an appreciative advantage, the world has changed. “Does our distinction answer our competitor’s advantage?” We need to acknowledge our competitors' advantages, even to our customers and then show how our distinction is additionally of more value. When we do this, we not only gain credibility with our industry but our customers a well. We move the bar higher instead of beating down our competitors. This also helps attract a better labor force and therefor creates a better product.

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3 Financial potential

A third criterion to consider is the financial potential of the opportunity. This means estimating the costs, revenues, and profits that you can generate from the opportunity, and the risks and uncertainties involved. You can use various methods to calculate the financial potential, such as break-even analysis, cash flow analysis, or sensitivity analysis. The goal is to determine the profitability, scalability, and sustainability of the opportunity, and the return on investment that you can expect.

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David Schreiber

Business Advisor & Author @ MuvMii | Change Management, Leadership Consulting
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We also need to take into account the "friendship factor" and remove it from our planning and assessment and use market values. So, what exactly is the friendship factor? It’s basically free labor. Or rather, it’s labor that you would pay for on the open market, but that you don’t have to because a friend or family member helps you out. For example, you have a friend who has given me valuable legal advice for years without receiving any formal payment.

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4 Social impact

A fourth criterion to consider is the social impact of the opportunity. This means assessing the positive and negative effects that your opportunity can have on the society, the environment, and the stakeholders involved. You can use various frameworks to measure the social impact, such as triple bottom line, social return on investment, or balanced scorecard. The goal is to evaluate the ethical, environmental, and social implications of the opportunity, and the value that you can create for the society.

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5 Personal fit

A fifth criterion to consider is the personal fit of the opportunity. This means reflecting on your own skills, interests, passions, and goals, and how they align with the opportunity. You can use various tools to explore the personal fit, such as self-assessment tests, career counseling, or mentorship. The goal is to find an opportunity that matches your personality, values, and aspirations, and that motivates and challenges you.

Entrepreneurial opportunity analysis is a crucial step in the entrepreneurial journey. It helps you to identify and evaluate the most promising opportunities, and to select the ones that best suit your vision and capabilities. By applying the key criteria discussed in this article, you can increase your chances of success and satisfaction as an entrepreneur.

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What are the key criteria for screening and selecting the most promising opportunities?

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1 Market demand

2 Competitive advantage

3 Financial potential

4 Social impact

5 Personal fit

Entrepreneurship

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What are the key criteria for screening and selecting the most promising opportunities?

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1 Market demand

2 Competitive advantage

3 Financial potential

4 Social impact

5 Personal fit

Entrepreneurship

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