There are major and obvious differences between success and failure in business, and there are visible variances between entrepreneurial losses and fortunes. The dynamics of these differences must be known and fully analyzed for the savvy entrepreneurs to benefit withal.
One of the major differences between succeeding and failing in business is the capability to fully screen the viability of identified business ideas and opportunities. A good entrepreneur must possess the canny ability to assess and analyze the viability of any business idea before going ahead with it, and this ability is what will determine the variance between success and failure.
It is not so easy to easily assess or evaluate the extent of a business success, but this is very important and must never be overlooked. It surely enables you to increase your chances for success while diminishing the odds of failure in any given enterprise. To be able to successfully evaluate the chances of a business opportunity in terms of risks and rewards relate to the following factors:
- Target market: To test the viability or success/failure ratio of your new business opportunity, you must determine if there are people out there with the financial strength as well as the ability and willingness to buy your products. You must also have an idea of how large your market is and if you’re able to cope with rising demands.
- Utilize hot opportunities: Opportunities do not last forever; they are soon identified and snatched up by some other persons if you fail to act in time. This means there is always a window period within which you must seize and act on your identified opportunity before it slips away. You must therefore determine if you have the capabilities and resources to seize this opportunity while it lasts.
- Competency of the entrepreneur: It is good to have a great business idea and to execute it to make profits. But do you really have what it takes to venture into this business and to make a success of it? Are you motivated enough to cope with unexpected challenges as they surface, and how well-suited are you to absorb business and market shocks? Must you really go into this particular business?
- Sole business or industrial company? Any business that requires only your input and expertise can only provide you with daily meals and nothing more, but any business that requires the help of employees or staff can make you rich forever. So if others are getting involved with you as partners or hired staffs, you must determine their levels of experience and what they stand to contribute to the business. You must know their personal qualities and attributes as well as know if you can leverage upon their social networks.
- Market competition and government policies: You can’t go into a product or service market without first identifying your core competitors and strategizing on how to overcome them. So you must identify the competition and determine if you’re able to overcome it with minimal efforts and resources. Another thing is that you must determine if there is a conducive environment free of government intervention for you to operate in.