So you have a business idea. Want to find out if you have a good idea and can really make money? Well it is a simple process I call Opportunity Analysis. An opportunity analysis allows you to get some idea of the size of the market and then to get a reasonable view of just how much money you can make. Don’t be like so many others who have gone into businesses which are limited in the amount of income. Would you want to go into a business where you can only make $65,000 per year if you do well? Many do.
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Steps to an Opportunity Analysis
Get Clarity
- What will you do? Be clear and concise!
- Who is the customer? Think of a list. How big?
- What is the pain that you are relieving? This is your value proposition.
- What is the market size of YOUR segment?
- What is the price?
Ask a Woman
Something about women’s intuition really works. I do not claim to understand it, but I know of tons of business people – men and women – who tap into the wisdom God has given women.
Do the Math!
Here is an example of how much we could make per product as we went into the homeschooling business. We were creating high school math products for the homeschool market, and we needed to know how much we might could make per product. (This data was a mix of Google research and common sense guesses.)
- Homeschool market size: 2 million families
- High School Percentage: 50.00%
- Leave homeschooling in high school: 50.00%
- % of Market we expect: 0.50% (Yes – this is 1/2 of 1%)
- Sales (units): 2500 (Calculated from above numbers)
- Average sale per unit: $100
- Revenue per Product = $250,000
Now recognize these numbers are WRONG! But are they interesting? If they do not interest you at this level, you should keep looking for ideas.
Want to Do Your Own – Opportunity Analysis?
Download my opportunity analysis worksheet here.
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