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Suggest You - Business Idea & Opportunity Evaluation
A lot of big inventions were discovered " by chance ". Let's take the case of the penicillin. In 1928 the scholar Alexander Fleming discovers it after to have forgotten a culture of mushrooms in his laboratory. He notices that a mildew that had developed (Penicillium notatum) killed all the bacteria around the mushrooms. 17 years later he shared the Nobel price of medicine.Another example, the discovery of Velcro. While taking a walk in the mountains, Georges De Mestrallet, engineer, is irritated by the small balls of a plant that hang themselves to its clothing and to the hairs of his dog. The tiny hooks of th
M - Analyze target market (who are you selling to? businesses? consumers? what demographics?)
M - Pricing (what you they charge, what will be the price, will there be a high enough markup).
M - Analyze market size
Finally let’s look at P. P stands for potential.
P - Risk vs. Reward. How risky is the opportunity? If it is very risky, it there a chance for the business to do very well. Will there be a high reward for the founders and investors if the company succeeds?
P - The Team. Is the team right for the business. Do you have knowledge in this area.
P - Timing. Is the market ready for your product. You may have a great idea for flying cars, but if consumers are not ready for your product you may not be able to turn your idea into a successful business.
P - Goal Fit. Does the business concept fit the goals of the team to create a high potential or lifestyle business?
By using the R
Become your customers top-of-mind choice.Some of these snapshots of real life SmartPartnership success stories can be adapted to help your kind of business (or non-profit or government agency) thrive…1. *Offer Special Touches That Your Competition Doesn't*That’s how guests at the Holiday Inn Express enjoy the opportunity to try Kohler’s new multi-function showerhead and spa bath.Families staying at some Holiday Inns featuring Nickelodeon Family Suites get to play in a water park and arcade.Who knows how many people chose to stay at the Ritz Carlton during one Fall, rather than at another luxury ho
Is the idea feasible in the marketplace? Is there demand? Can it be done? Are you able to pull together the persons and resources to pull it off before the window of opportunity closes? These questions must be considered and answered.
Opportunity-focused entrepreneurs start with the customer and the market in mind. They analyze the market to determine industry issues, market structure, market size, growth rate, market capacity, attainable market share, cost structure, the core economics, exit strategy issues, time to breakeven, opportunity costs, and barriers to entry. Below are two models that entrepreneurs use to evaluate their business ideas and plans.
Fourteen Questions to Ask Every Time
To evaluate opportunities, entrepreneurs ask the following questions:
1. What is the need you fill or problem you solve? (Value Proposition)
2. Who are you selling to? (Target Market)
3. How would you make money? (Revenue Model)
4. How will you differentiate your company from what is already out there? (Unique selling proposition)
5. What are the barriers to entry?
6. How many competitors do you have and of what quality are they? (Competitive Analysis)
7. How big is your market in dollars? (Market Size)
8. How fast is the market growing or shrinking? (Market Growth)
9. What percent of the market do you believe you could gain? (Market Share)
10. What type of company would this be? (Lifestyle or High Potential, Sole Proprietorship or Corporation)
11. How much would it cost to get started? (Start-up Costs)
12. Do you plan to use debt capital or raise investment? If so, how much and what type? (Investment needs)
13. Do you plan to sell your company or go public (list the company on the stock markets) one day? (Exit Strategy)
14. If you take on investment, how much money do you think your investors will get back in return? (Return on Investment)
Let’s take the above fourteen questions and term them into an easy model that you can use to evaluate your business ideas you come up with. This is called the RAMP model.
The RAMP Model
Let’s start with the first letter, R, which stands for Return. Return really is return on investment.
R - Discuss Exit Strategy (acquisition or IPO)
R - Is it profitable? Will your revenues be higher than your expenses?
R - Time to breakeven (how long before cash flow positive? How long until the company begins to have an aggregate net income)
R - Investment Needed. How much money will it take to start-up this venture. Will it be $20,000, $200,000, or $2,000,000?
Now let’s look at A. A stands for advantages.
A - Look at cost structure (suppliers, what each element will cost to source or manufacture)
A - Barriers to entry (large competitors, regulations, patents, large capital requirements. If there are many barriers to entry, it will be difficult to enter a market. The higher the barriers to entry, the more disadvantaged you will be.
A - Intellectual Property. Do you have a proprietary advantage such as a patents or exclusive licenses on what you will be selling.
A - Distribution Channel. How will you be selling your product? Will you sell it direct to the consumer via the Internet, sell it to wholesales, sell it to businesses, or sell it to retail stores. If can develop a unique distribution channel this can surely be an advantage.
Now let’s look at M. M stands for Market.
M - The Need. Is there a big need for this product or service. Try to avoid ideas that sound cool but there is no real need for. Make sure your product or service fills and need or solves a problem.
M - Target market (who are you selling to? businesses? consumers? what demographics?)
M - Analyze target market (who are you selling to? businesses? consumers? what demographics?)
M - Pricing (what you they charge, what will be the price, will there be a high enough markup).
M - Analyze market size
Finally let’s look at P. P stands for potential.
P - Risk vs. Reward. How risky is the opportunity? If it is very risky, it there a chance for the business to do very well. Will there be a high reward for the founders and investors if the company succeeds?
P - The Team. Is the team right for the business. Do you have knowledge in this area.
P - Timing. Is the market ready for your product. You may have a great idea for flying cars, but if consumers are not ready for your product you may not be able to turn your idea into a successful business.
P - Goal Fit. Does the business concept fit the goals of the team to create a high potential or lifestyle business?
By using the RA
Importance Of Learning Interview TechniquesSuccessful candidates face an interview with confidence and have the ability to draw attention to key experiences to prove that they are the ideal choice for the job. They understand the requirements of a particular job and demonstrate their expertise to deal with issues pertaining to that field. Most people miss a desperately needed job only because they have not been able to master the techniques of effective interview. Developing the right interview techniques may take a while; however, you should have the determination and the enthusiasm to learn them. Learning effective interview tec
1. What is the need you fill or problem you solve? (Value Proposition)
2. Who are you selling to? (Target Market)
3. How would you make money? (Revenue Model)
4. How will you differentiate your company from what is already out there? (Unique selling proposition)
5. What are the barriers to entry?
6. How many competitors do you have and of what quality are they? (Competitive Analysis)
7. How big is your market in dollars? (Market Size)
8. How fast is the market growing or shrinking? (Market Growth)
9. What percent of the market do you believe you could gain? (Market Share)
10. What type of company would this be? (Lifestyle or High Potential, Sole Proprietorship or Corporation)
11. How much would it cost to get started? (Start-up Costs)
12. Do you plan to use debt capital or raise investment? If so, how much and what type? (Investment needs)
13. Do you plan to sell your company or go public (list the company on the stock markets) one day? (Exit Strategy)
14. If you take on investment, how much money do you think your investors will get back in return? (Return on Investment)
Let’s take the above fourteen questions and term them into an easy model that you can use to evaluate your business ideas you come up with. This is called the RAMP model.
The RAMP Model
Let’s start with the first letter, R, which stands for Return. Return really is return on investment.
R - Discuss Exit Strategy (acquisition or IPO)
R - Is it profitable? Will your revenues be higher than your expenses?
R - Time to breakeven (how long before cash flow positive? How long until the company begins to have an aggregate net income)
R - Investment Needed. How much money will it take to start-up this venture. Will it be $20,000, $200,000, or $2,000,000?
Now let’s look at A. A stands for advantages.
A - Look at cost structure (suppliers, what each element will cost to source or manufacture)
A - Barriers to entry (large competitors, regulations, patents, large capital requirements. If there are many barriers to entry, it will be difficult to enter a market. The higher the barriers to entry, the more disadvantaged you will be.
A - Intellectual Property. Do you have a proprietary advantage such as a patents or exclusive licenses on what you will be selling.
A - Distribution Channel. How will you be selling your product? Will you sell it direct to the consumer via the Internet, sell it to wholesales, sell it to businesses, or sell it to retail stores. If can develop a unique distribution channel this can surely be an advantage.
Now let’s look at M. M stands for Market.
M - The Need. Is there a big need for this product or service. Try to avoid ideas that sound cool but there is no real need for. Make sure your product or service fills and need or solves a problem.
M - Target market (who are you selling to? businesses? consumers? what demographics?)
M - Analyze target market (who are you selling to? businesses? consumers? what demographics?)
M - Pricing (what you they charge, what will be the price, will there be a high enough markup).
M - Analyze market size
Finally let’s look at P. P stands for potential.
P - Risk vs. Reward. How risky is the opportunity? If it is very risky, it there a chance for the business to do very well. Will there be a high reward for the founders and investors if the company succeeds?
P - The Team. Is the team right for the business. Do you have knowledge in this area.
P - Timing. Is the market ready for your product. You may have a great idea for flying cars, but if consumers are not ready for your product you may not be able to turn your idea into a successful business.
P - Goal Fit. Does the business concept fit the goals of the team to create a high potential or lifestyle business?
By using the R
Were you once a successful, professional woman who had a significant status level and received adequate remuneration for your work?Have you re-located to a new country where the educational degree you worked so hard to achieve is neither recognized nor considered valid?As a result, have you now settled for a job for which you are overqualified and living paycheck to paycheck?If you once had a successful professional career and answered yes to the above, you probaby understand how frustrating it is, to be unable to practice your profession in a new country.The decision to immigrate to another country is a coura
14. If you take on investment, how much money do you think your investors will get back in return? (Return on Investment)
Let’s take the above fourteen questions and term them into an easy model that you can use to evaluate your business ideas you come up with. This is called the RAMP model.
The RAMP Model
Let’s start with the first letter, R, which stands for Return. Return really is return on investment.
R - Discuss Exit Strategy (acquisition or IPO)
R - Is it profitable? Will your revenues be higher than your expenses?
R - Time to breakeven (how long before cash flow positive? How long until the company begins to have an aggregate net income)
R - Investment Needed. How much money will it take to start-up this venture. Will it be $20,000, $200,000, or $2,000,000?
Now let’s look at A. A stands for advantages.
A - Look at cost structure (suppliers, what each element will cost to source or manufacture)
A - Barriers to entry (large competitors, regulations, patents, large capital requirements. If there are many barriers to entry, it will be difficult to enter a market. The higher the barriers to entry, the more disadvantaged you will be.
A - Intellectual Property. Do you have a proprietary advantage such as a patents or exclusive licenses on what you will be selling.
A - Distribution Channel. How will you be selling your product? Will you sell it direct to the consumer via the Internet, sell it to wholesales, sell it to businesses, or sell it to retail stores. If can develop a unique distribution channel this can surely be an advantage.
Now let’s look at M. M stands for Market.
M - The Need. Is there a big need for this product or service. Try to avoid ideas that sound cool but there is no real need for. Make sure your product or service fills and need or solves a problem.
M - Target market (who are you selling to? businesses? consumers? what demographics?)
M - Analyze target market (who are you selling to? businesses? consumers? what demographics?)
M - Pricing (what you they charge, what will be the price, will there be a high enough markup).
M - Analyze market size
Finally let’s look at P. P stands for potential.
P - Risk vs. Reward. How risky is the opportunity? If it is very risky, it there a chance for the business to do very well. Will there be a high reward for the founders and investors if the company succeeds?
P - The Team. Is the team right for the business. Do you have knowledge in this area.
P - Timing. Is the market ready for your product. You may have a great idea for flying cars, but if consumers are not ready for your product you may not be able to turn your idea into a successful business.
P - Goal Fit. Does the business concept fit the goals of the team to create a high potential or lifestyle business?
By using the R
Are you an El Monte homeowner or business owner who has a mold problem? If you do, you will want to have the mold removed from your home or your business. This process is often referred to as mold remediation or mold removal. If you are interested in having the mold in your home or business professionally removed, which you should be, you will need to find an El Monte mold remediation specialist to do business with.When it comes to finding an El Monte mold remediation specialist to do business with, you can find a number of local mold remediation specialists by speaking to those that you know, using the internet, or by using your
A - Barriers to entry (large competitors, regulations, patents, large capital requirements. If there are many barriers to entry, it will be difficult to enter a market. The higher the barriers to entry, the more disadvantaged you will be.
A - Intellectual Property. Do you have a proprietary advantage such as a patents or exclusive licenses on what you will be selling.
A - Distribution Channel. How will you be selling your product? Will you sell it direct to the consumer via the Internet, sell it to wholesales, sell it to businesses, or sell it to retail stores. If can develop a unique distribution channel this can surely be an advantage.
Now let’s look at M. M stands for Market.
M - The Need. Is there a big need for this product or service. Try to avoid ideas that sound cool but there is no real need for. Make sure your product or service fills and need or solves a problem.
M - Target market (who are you selling to? businesses? consumers? what demographics?)
M - Analyze target market (who are you selling to? businesses? consumers? what demographics?)
M - Pricing (what you they charge, what will be the price, will there be a high enough markup).
M - Analyze market size
Finally let’s look at P. P stands for potential.
P - Risk vs. Reward. How risky is the opportunity? If it is very risky, it there a chance for the business to do very well. Will there be a high reward for the founders and investors if the company succeeds?
P - The Team. Is the team right for the business. Do you have knowledge in this area.
P - Timing. Is the market ready for your product. You may have a great idea for flying cars, but if consumers are not ready for your product you may not be able to turn your idea into a successful business.
P - Goal Fit. Does the business concept fit the goals of the team to create a high potential or lifestyle business?
By using the R
There was an English tea merchant selling tea packs in his town during the year 1660 A.D. He used to get a bag of tea from one estate or the other and make small packs and sell them to the people in his area. People were buying from him, but used to make remarks on the quality of the tea he supplied. THE GOODNESS OF TEAS! It had become quite customary to hear comments of his customers about his tea. They said, “The tea was good last time, but it is different now”. When the color was good, the taste was not so. Again, when the taste was good, the tea color was very low. The flavor was not always the same.<
M - Analyze target market (who are you selling to? businesses? consumers? what demographics?)
M - Pricing (what you they charge, what will be the price, will there be a high enough markup).
M - Analyze market size
Finally let’s look at P. P stands for potential.
P - Risk vs. Reward. How risky is the opportunity? If it is very risky, it there a chance for the business to do very well. Will there be a high reward for the founders and investors if the company succeeds?
P - The Team. Is the team right for the business. Do you have knowledge in this area.
P - Timing. Is the market ready for your product. You may have a great idea for flying cars, but if consumers are not ready for your product you may not be able to turn your idea into a successful business.
P - Goal Fit. Does the business concept fit the goals of the team to create a high potential or lifestyle business?
By using the RAMP model and the fourteen questions above you should be able to do a thorough job analyzing your business ideas and opportunities presented to you.
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