As the world slowly slides into a recessive gridlock, a form of calculated financial crunch that’s got everybody talking, and governments across the globe rushing to act, – creative money-making ideas from cash-starved minds see business opportunities.
And if you’ve ever been out of a job, had to close your business, or had to live perilously close to filing for TANF welfare checks, then the need for setting up a hustle that works is not an option but a make-or-break venture.
The Business Sieve – From idea to opportunity
This is how to strain that business idea through the entrepreneurial sieve, and find out if it’s an entrepreneurial opportunity or just another low-flying idea.
Statistics aren’t kind to Entrepreneurs, approximately 98% of the business ideas pitched to venture capital investors are rejected.
Here is how to translate the info – out of every 100 businesses, only 2 live to see the light of day to become business opportunities.
An idea is like a seed, an impression, a concept, it revolves around a seemingly successful product or service to become an opportunity which on the other hand, is the care and nurturing of that idea into a successful business.
A business idea may not necessarily be a business opportunity; you may need to filter and sift through several ideas to realize real opportunities.
Most times ideas remain dormant, hidden by their owners, who lack courage, resources, time, money, or simply are incapacitated with fear and the inability to take action.
Other seemingly successful ideas, flaunted by committed entrepreneurs brave enough to take the plunge, start out on a journey to becoming six-figure enterprises.
Sadly, they die suddenly, in their infancy, before making any meaningful headway.
Their founders lacked far-sighted vision and preparedness.
Successful entrepreneurs are good at turning ideas into opportunities.
They act, they execute to make it happen. That takes time, lots of tears, blood, and sweat.
Since a business idea isn’t necessarily a business opportunity, you don’t need to waste time and resources on an idea that doesn’t look promising. Weigh that idea on the scales, and here is how to do it;
A business opportunity stems from a business idea only if it can generate a profit.
A good business opportunity will be grounded on these four pillars:
The product or service must;
- Add value to a customer or end-user,
- Solve a problem or satisfy a want or need,
- Have money-making characteristics,
- Should be a good fit in four capital factors:
Human capital (skills, knowledge, and abilities you’ve developed through your career);
Sociological capital (your networks and support groups);
Psychological capital (your attitudes, values, opinions, and beliefs); lastly,
Here are five basic elements that will help you turn your ideas into tangible opportunities:
1. Strategic Fit- To cash in on any opportunity, you must offer something the market wants now or shortly. Take a long and hard look at the market, find that real need, what does your customer really want? will they spend money on it?
2. Business Plan- Develop a business plan that converts that idea into an opportunity. Working on the business plan will help you to filter ideas and find more opportunities. Lay out the basics of that idea – starting costs, realistic sales, costs of sales, expenses, etc.
The process of writing a business plan actually helps you develop your idea into an opportunity. It forces you to ask and answer hard questions and explore all options.
3. Team- Build a team, you need a team to deliver on that business opportunity. An idea rarely becomes an opportunity without a team. No individual has all the knowledge and skills necessary to make the transformation.
4. Leadership- Once you have a team, the right leadership is essential to guide the development from idea to opportunity. Guide your team effectively and efficiently.
5. Resources- Resources are needed to turn your idea into an opportunity. Think through the resources required. An idea becomes an opportunity when you can act on it. The planning process will give you a good idea of the resources required to turn your idea into an opportunity.
Opportunities are far rarer–and way more valuable than ideas. Lots of budding entrepreneurs succeed or fail because of moving fast on an idea that wasn’t an opportunity.
But as you turn that idea into an opportunity, be wary of competition. For every new idea, thousands of entrepreneurs compete to turn that same idea into a valuable business opportunity.
Business ideas are great. But if you really want to succeed, you need to know how to turn that simple idea into an opportunity that will become a profitable venture.