New Business Opportunity Analysis
Do you see opportunity everywhere? Many entrepreneurs do. The best business owners know when to pounce, and when to put something on the back burner. Don’t become that impossible juggler!
We live in an age of information overload. Between the Internet, email, smartphones, and social media, ideas are disseminated faster than ever. It’s often when an idea evolves into an obsession that a great company is born. But what happens when CEOs of entrepreneurial organizations are distracted by other ventures?
Entrepreneurs are by and large successful because they have the unique ability to identify disequilibrium within the marketplace. This ability, while vital for their success, often makes entrepreneurs prone to distraction as they are always searching for and evaluating new opportunities.
Although there may be tremendous opportunity in some of these potential ventures, it is important that entrepreneurial CEO’s choose the right ones to pursue – especially as commitment to a new business opportunity may consume hundreds or thousands of hours, and hurt the existing business.
So how exactly should one go about determining the correct opportunity to pursue? Let NBG provide a New Opportunity Review Work Session to help you create the “Do”, and “Do Not” list.
What Is This Service?
NBG and Client ownership and/or executive management will compile the starting list of new business opportunities that client wishes to review. This could be one, or a dozen concepts or businesses that the owner has considered in recent years.
Each opportunity will have to meet the following criteria to make it to the second stage:
- Owner Must Have Passion. To be successful and remain committed to the venture, entrepreneurs must have a deep-rooted and genuine passion for the industry, product, and company vision.
- Owner Must Have Industry Experience. It is difficult to start any business with limited industry experience. Combine that with the fact that one will have another business to run, and the odds of
- successfully starting a business in an unknown industry go down significantly. Industry experience is a must for any auxiliary business venture.
- Product/Service Must Have a Major Differentiator. There is little reason to get involved in a new venture if one is simply producing a commodity. With the other business obligations that entrepreneurial CEO’s already hold, it is necessary to remain patient until a truly innovative and differentiated product or service opportunity presents itself.
These three are by no means the only criteria for evaluating a new business opportunity. However, we have found through experience that they work as a great litmus test for evaluating new business opportunities. If you are evaluating a new venture and all of these criteria are not met, you may want to consider sticking to one CEO title for the time being.
The Second Stage will be a more detailed review of the value and potential of each opportunity, the overlapping synergy to current business interests, and the long-term exit potential. The desired outcome will be a detailed review of each opportunity, pros/cons and recommended status.
How Does It Work?
NBG will provide a brief questionnaire for Client ownership/executive management to complete and present their view of the opportunity and it’s potential. NBG will conduct its own research into each opportunity before an on-site full day work session. The work session will involve a full review of each opportunity, and the creation of any additional research required. Within three weeks, a final report will be presented to Client, allowing for any additional needed research.
What Does It Cost?
Once the Project Plan is created, it will have a fixed cost, with a not to exceed cost ceiling. Client will pay 60% upon engagement, and the final 40% upon completion and delivery.
Additional Marketing and/or Competition Research Requirements
You may need to engage NBG to gather additional market research. This additional information may be purchased as in Industry Market Reports, or gathered through manual on-line research. A separate price will be quoted for this service if needed.
If you have any questions Contact Us To Learn More!