Best business to start as an entrepreneur?

What is Business Opportunity?

Business opportunities  may be defined simply as an attractive idea or proposition that provides the possibility of a return for the investor or the person taking the risk. Such opportunity are represented by customer requirements and lead to the provision of a product or service which creates or adds for it’s buyer or end-user. Business Opportunity can also be defined as a favorable circumstances or environment created in production, commercial, service or financial activities that may occupy someone’s time, attention, labour and other resources, the motive of which is to make profit. A business opportunity can be seen as an attractive project idea which an entrepreneur accepts for investment on the basis of certain assumptions about the feasibility of the project. Entrepreneurs start a new venture by discovering an opportunity and turning it into a business idea. A business opportunity may exist where there may be a problem solve or requirement is needed to fulfill a need. Business Opportunity is what many people can use to become their own boss or work from home. An innovative idea is of no value if there’s no opportunity or market.

Entrepreneurs see opportunities where others see problem. As a result most successful entrepreneurs are opportunity focused. They start with what customers and the market place want and ready to pay for. Searching for business opportunity is proactive or reactive. Innovative entrepreneurs are optimistic and see problem as challenges.
Business Opportunities are in many areas dependent on the time, environment, economy, fashion, tastes and culture, etc. Nowadays, business opportunity are more in high technology industries like computer, E-business, and biotechnology. Through environmental scanning, entrepreneurs as good as observers are on the lookout to understand how imperfect market creates opportunities. Since many service still lacking, many customers will still be unsatisfied, and many needs yet to be met . A careful observation of these realities will provide a wide range of entrepreneurial activities with opportunities.

Read also: 5 listed investment opportunities that is suitable for you

Characteristics of a Good Business Opportunity

A good business opportunity must fulfill, or be capable of meeting the following criteria:

  • Real demand
  • Return on investment
  • Feasible
  • Specific
  • Motivational
  • Legal
  • Availability of resources and skills
  • Ethical
  • A product

REAL DEMAND

A good business opportunity must respond to unsatisfied needs or requirements of customers who have the ability to purchase and who are willing to exercise that choice. It must be Marketable and something that will be accepted by another in exchange for money.

RETURN ON INVESTMENT

A good business opportunity provides durable, timely and acceptable returns or reward for the risk and efforts required. It must be viable and profitable. Profit is very important for business survival, so a business opportunity must be something which will offer you that profit.

FEASIBLE

It must be feasible. It should be something that is possible of being achieved. There must be that possibility of being Identified and exploited within one’s capabilities.

SPECIFIC

A good business opportunity must be Specific, and this implies that it must have definition, scope and name. It must be identifiable, specified, definite and exact to be a business opportunity. It must not be vague and ambiguous.

MOTIVATIONAL

It must meet the goals and aspirations of the person or organisation taking the risk. That is, why profit is important in every business opportunity. One must gain something reasonable for his efforts especially financial rewards.

LEGAL

A business opportunity should be legal. It must be something that is not against the rules and regulation of the government. It must be acceptable under the law.

AVAILABILITY OF RESOURCES AND SKILLS

The resources and skills needed must be within the reach of the entrepreneur. He/She must be competent in exploiting business opportunity.

Read also:The Role of Development Banks in the Promotion and Development of Small and Medium Enterprises (SMEs)

ETHICAL

A good business opportunity must be ethical. Every business has its own ethics. This simply means the dos and donts of a particular business. For instance, things like cheating, false measure, adulterated food or drugs, falsification and deceptive advertising should not be part of a good business opportunity.

A PRODUCT

A good business opportunity must be ether a product or a service. This implies that a good business opportunity must be capable of satisfying the need of the third party.

Four essential qualities of a business opportunity
Four essential qualities of a business opportunity

Sources of Business Opportunity

Self-Discovery as source for Business Opportunities

Create a product for an unsatisfied need: there are a lot of unsatisfied in all types of market and although taking advantage of this business Opportunities promise a lot of rewards, keep in mind that they also represent great risk. Also, be sure that your product or service satisfy needs and not wants because the former is for keeps while the latter simply come and go.

Improve an Existing Product: If you notice a particular product or service that is obviously unable to fully satisfy it’s target market, that situation can be immediately transformed into a business opportunity, if you have an idea on how to improve it, that is good. This business Opportunities represent lower risks and consequently lower rewards as well compared to those associated to creating a completely new product.

Use an Existing Produoct for an Untapped Market: Sometimes, business Opportunities are discovered not by creativity but rather because of resourcefulness. These business opportunities definitely exists, but the process of discovering is almost akin to creating a new product to satisfy an unwanted needs. The rewards however are just great. On good example for this is how a Philippine company was able to make use of coconut tree by grinding and turning them into a concrete mixing compound. It soon became not only a more affordable alternative but a more environmentally friendly one as well.

Joint Effort as Source for Business Opportunities.

As they always say, “two good Brian’s work better than one”; in the world of business, there are twice as much business opportunities available just as long as you are open to working with others.

Be an Angel: if you find it extremely difficult or impossible even to come up with a new idea for business then stop torturing your brian. Instead find someone trustworthy to sponsor. If you feel this idea has merit, then you should provide the necessary funds and earn from his idea.

Read also: Do you know you can Earn money through Amazon through the following ways

Become a partner: Lastly, if you are unsatisfied with the limited option that being a franchisee or investor affords you, you can always choose to take part in a joint venture. As a partner of the business, you have equal rights to affirm or veto any change. And you do not need to think of any new idea for business as well. Instead, all you have to do is find a company you need to invest in and offer a partnership. It is always worth a trial.

Identification and Evaluation of a Business Opportunity: Business opportunity identification and evaluation is a very difficult task. Most good business opportunities do not sudden appear, but rather result from an entrepreneurs alertness to possibilities or in some cases, the establishment of mechanisms that identify potential opportunities. With so many opportunities available, it is often difficult to determine whether a particular opportunity shows great promise or is likely to fail. Your goal is to learn how to tell a good opportunity from a bad one. Here are some tips that will help you assess the potential of any business opportunity that comes your way and make the right decision.

Environmental Scanning

Environment is a source of information to an end and also a source of information and material resources to an entrepreneur. This is because, an entrepreneur must be ready to offer what the environment needs and also the entrepreneur must need what the environment can provide if not, there would be no alignment and fit between the environment and entrepreneurs firm. It is environmental scanning that helps us discover business opportunities lying in our external environment.

Stability of the Company associated with the opportunity

In the case of new business that does not yet has a proven track record, you want to know who is behind the launch or who is supplying this company with operating capital until the business begins to generate profits. Essentially, you want some amount of assurance that the company will be around long enough for you to benefit from a relationship with the opportunity, especially in terms of recouping any investment of time and other resources.
Keep in mind that a new business resources or a plan to start a business may be riskier than going with a company with an established track record. However, business opportunities of this kind are not automatically suspect. If the funding is there and the organization is structured properly, the opportunity is well worth your consideration.
Assessing the good or service offered by the business is also important. The best business opportunities involve companies that offer something consumers will need or desire overall other competing products. It is not a problem if the product is aimed at a niche market. Business Opportunities of this type are often great money makers, since they address needs that are often overlooked by others. In addition, the competition is probably less fierce in a niche market, a situation that will allow the company you are evaluating to establish itself as the industry standard in that market.

Read also: Best 20 business to start with little money 2021

Along with having a solid financial base and a product that is sure to attract attention, the best business opportunities also have a comprehensive and we’ll defined system for getting the products to consumers. This includes such factors as a reliable process for producing the goods or service, excellent sales and marketing strategies, and an efficient delivery to the buyer. Without the ability to satisfy orders quickly and efficiently, even the best product is less likely to build a royal client base.
The return will receive is also very important when considering different business opportunities. Will you earn an equitable return in comparison to what you invest in the business in terms of time and other resources? If so, then there is a good chance the opportunity is worth pursuing. If you are not sure, keep looking for something better.

You will find that in today’s market, it is worth your time to consider a home based business as well as a more traditional business setting. Business Opportunities of this type often start with business ideas that are new and fresh in terms of approach or some aspect of the product offered. If you see merit in a given business idea and think it has a good chance of succeeding, then look it over carefully. That home based business may be the ideal investment vehicle for you.

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