Identification of business opportunities is the foundation of starting a business. Before you start any business it is necessary to examine very carefully your ability to manufacture a product or offer a service. If you get it right at this initial stage you will have made a major step towards your business success.
Then evaluate your skills, that is, your education, your professional training and experience. How do the business opportunities available relate to your skills? If the opportunities do not relate to your skills, are you able to hire the skills at economically viable costs? Or, are there local training facilities at which you can get the training preferably through short courses? Think of the Internet too as a source of training and quite often it is free.
If you have the ideas but the skills are hard to come by, think of opportunities that don’t require much of a training such as retail shops, house to house selling etc, etc.
Now, whatever you choose, it must be something you will enjoy doing. That way you will be motivated enough to do your best.
Do You Have What It Takes to Run a Business!
Running your own business has its advantages and disadvantages. To start with, running your business will give you the satisfaction of being your own boss and a pride of ownership. You can work at your own schedule and plan your holidays at your most convenient time. You can even choose to work in the comfort of your home.
However, being your own boss comes with its costs and risks. Apart from the obvious financial risks involved with running any business, big or small, you will have to bear full responsibility of all your actions, some of which may lead to financial losses. Are you prepared to live with that both emotionally and financially? Some businesses may demand long working hours, are you ready for the time you will miss with your family?
As an entrepreneur success will come out taking advantage of present opportunities, but at the same time you should be prepared to take well calculated risks when the situation demands. Remember the saying, “Those who never take risks never discover anything.”
When doing your self-evaluation, don’t underestimate your abilities, you could be a lot more capable than you think
Look at the market, local, national and even international. Is there a demand for your products or services? Or can you create the demand? May be there is an agency in your country that does assist traders in this respect; make use of it.
During your study you should endeavor to find out:
* The type and quality of products or services that have a good demand,
* Who your potential customers are,
* What the level of demand is,
* At what prices can you sell the goods or services and will you get a reasonable return on your investment?
* What are the distribution channels and where is the location of the market?
* What competition are you likely to encounter in your chosen market and how do you intend to deal with it?
Along with that you should also study:
* The source, quantity and cost of materials, tools and equipment,
* The reliability of the supply and servicing,
* How much it will cost to start and run the business,
* Can you raise or borrow the necessary finances?
If you pay serious attention to the details above you will be able to make a very informed decision. You can then march on with confidence.