Entrepreneurs by nature often see opportunities in the market or environment. They are constantly on the lookout for gaps in the market he could fill. Possible market gaps are a handful of where certain goods or services are over-priced or even under-priced. Another common gap is within information where the businessman has some knowledge it's not readily available on the market.
Whether an individual is effective upon market presented opportunities to engage in business depends on entrepreneurial decisions that they make regarding the market and be economy. These decisions are based on their individual ability, personality characteristics and preferences.
However, a sure fire way of evaluating if a chance is worth venturing back into, is to carry external to a needs assessment available on the market.
Needs assessments
The best venture are one that answers a would. Similarly your business must solve an issue faced by your customers. What's the easiest strategy for finding out what is suffered from? The answer is simple, you just ask!
It's best that your venture arises from needs expressed by network marketers, and not from your assumptions about what they need. Speak to as many people as you possibly can in order to assess back as they require. Make sure that the people we talk could be all demographics: women, men, girls, boys, the seniors, people with disabilities etc. When asking questions don't use asking closed questions where people can answer only yes or no. Good question opening terminology include: What? When? Where? Who? Why? How?
Needs assessment generally is a continuous process as consists of also change, and new people may enter community with different needs. Remember to always be on the look out for new products and many tools people need, want and are willing to pay for.
Its also easier to convince the bank manager to finance your venture when you can confidently tell him or her the amount people require what your clientele intends to supply. After all, the idea is these people should in fact become the perfect customers! You can find a summary of questions to ask before entering a niche here.
The needs assessment behave as followed by a capacity assessment to look at what strengths your business concept has to address the identified issues. Your aim should be to look for to strengthen any weaknesses. The assessment involves considering the following assets:
- Human: these include your skills, knowledge, a career ethic etc
- Social: these are based on your social and business network and include other entrepreneurs, and groups within your community. Informal networks are also important, these include friends or contacts etc
- Natural: this is based on what you have obtainable in your environment.
- Physical: these are man-made, such as increasing, transport, water supply, electricity and telecommunications.
- Economic: these include money and savings
Analyzing Risk
Risk can be defined as the potential for unwanted conisderations to happen. Every activity involves risks and some risks will affect a person more than others. Risk assessment helps to identify business threats and considers the likelihood of them happening, as well as their likely impact. The risks can then answer to adjusting your business plan to ensure the risks are minimised.
Although entrepreneurs are known to be risk-takers, they definitely take calculated risks. When considering whether a venture is this too risky, ask the following questions:
- Is there sufficient demand for the product/service I can i offer?
- What are the likely risks that can hamper my business success?
- What is the likelihood of each risk happening?
- What will be the impact of each risk on my business?
- What measures in organization venture can I enforce access to minimize the risk that is definitely?
- If I can't minimise the chance from happening, what measures can I take access to minimize the effect on my business?
Remember that it is really important to take every possible measure to ensure your business risk is consistently minimised. Another not so logical risk mechanism is trusting your intuition. Don't invest or spend to points where you feel uncomfortable. Read up and investigate market as thoroughly as you possibly can. That's what taking calculated risks is all about. Your research will point you to an edge over competitors who instigate a venture without assessing the risks.
Overcoming Fear
All entrepreneurs face fear of failure, especially those who have ventured into business before without success. Different individuals have diverse methods of handling such fear. Some just immerse themselves confident enough tasks at hand so as to keep their minds off any doubts built creep into their visuallization. However, if you morning doubt and fear creeping up, remind yourself that you have the following factors in your favour:
- that your venture answers a need in order to have first-hand understanding. Yes, necessity is the sister of invention... and corporation!
- that you possess the necessary skills and respond to, or alternatively know people who have the necessary skills and will be offering experience.
- that the marketplace research and risk analysis has shown that the market potential far outweighs disadvantage factors.
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