Sei sulla pagina 1di 7

Considerations for Evaluation Business

Opportunities
Submitted to:
Prof: ANIL G S
BJI



Submitted by:

MELVIN SILVESTER
S4 MBA
BJI

WHAT IS A BUSINESS OPPORTUNITY?
A business opportunity can be defined as
a sound business idea which forms the basis upon
which an entrepreneur makes a firm investment
decision.
Here are a few important initial questions you might ask yourself as part of
a business opportunity evaluation

o Does your business idea have a demonstrated market need?

o Is there sufficient demand for the product or service?

o Is creating the product or service economically feasible?

o Will there be a sufficient return on the investment of starting a new
business?


One of the common technique use to evaluate business opportunity is
RAMP model developed by Ryan P. Allis

Return - Whether a business opportunity will generate revenue?

Advantage - What makes your business idea better than others?

Market - Who will be your target consumer? Is there a need for your
business idea? Can you fill a market need?

Potential - Will there be sufficient financial reward?

Factors to be considered while evaluating a viable
business opportunity

Potential for growth - has the ability to grow and expand.

Infrastructure - low operating expenses, profits can be maximized.

Market for the goods and services - a clearly defined market if the
opportunity is to be considered.

Rewarding to the investor - cost-benefit consideration.

Price structure - are subjected to constant inflation, are likely to change in
terms of price.
Competition and Competitive advantage - Competition is regarded as a
threat to business.

Incentives - Offered by the government and Non-Governmental
Organizations.

Legal Consideration - new idea should be in line with the legal regulatory
framework.

Financial viability - Capital investment requirements, break even analysis,
cash flow projections, profitability.

Personnel, Training and Management - Look at the ability, cost of hiring
and training human resource.

Thank you