Evaluating a Computer Business Opportunity
A Home Business Article Contributed by Elizabeth Fox-Wise
Before Committing to a Computer Business Opportunity it is Important to Evaluate It
Before deciding on a computer business opportunity, it is always best to evaluate a few of them. Think of it like giving each opportunity a test to see which of them will pass and see which one is the most valid legitimate computer business opportunity for you.
The purpose of the test is to find out if there is a demand within the market for the goods or services you would be offering, and will your skills and this computer business opportunity be able to meet that demand.
There are a couple of different tests that many entrepreneurs use to evaluate a business opportunity.
Ask These Questions to Evaluate a Computer Business Opportunity
One approach to evaluation of a computer business opportunity has been outlined with a series of questions to be asked and answered.
First you need to determine the Value Proposition of the computer business opportunity.
The question to ask here is What is the need that you will fill or the problem that you will solve?
To determine the Target Market for the computer business opportunity, ask yourself.
Who you would be selling to?
Determine the Market Size. How Big is the Market in terms of dollars spent?
Determine the Market Growth. How fast is the market growing or shrinking?
How will your computer business opportunity be different from others already in operation?
What will be your unique twist or angle to give you leverage against the competition?
Do a Competitive Analysis by asking. How many competitors already exist in the market your computer business opportunity will target? Of what quality are these businesses? Are their customers satisfied with their services?
Determine Your Potential Market Share. What percentage of the market do you think your computer business opportunity could realistically gain?
Determine Capital needed to start. How much will it cost for you to get this computer business opportunity up and running?
Another Common Approach to Evaluating a Computer Business Opportunity is Associated to the Acronym Ramp
This method of evaluation basically asks the same questions as outlined above, but an acronym is used to help you to remember the process. The Word used is RAMP (Return, Advantages, Market, Potential)
The R - stand for Return (on Investment) During this stage you want to investigate how profitable this computer business opportunity could be. Will the revenue generated by the business be higher than the expenses? How much capital is required to get started and how long do you expect to have to operate before you will have recovered your start up costs?
The A is for Advantages. What are the obstacles to entering the Market (strong competition, etc)? Determine what your distribution channels would be. How will you be selling your product or service? Directly to the consumer or to retail or wholesale suppliers? Finding a unique distribution channel to your market could mean greater success.
The M is for Market. This is the stage where you determine if there is a need that you can fill.
Who will be your target market? How large is your target market, and what price are they willing to pay?
And finally the P is for Potential. Determine the potential for reward. The level of risk involved with the business opportunity. Also consider if the timing right and is the market ready?
