3 Conditions for Considering Opportunity

As a business looks for new opportunities, it is critical to find cost effective ways to quickly qualify different ones. It is often important to decide what opportunities you don't want to consider before you start spending time and money on diligence for the ones you think may have some value.

I try and simplify the initial process by determining if 3 conditions exist whenever someone brings an opportunity to me.

1. Is there a distinct growing need (short-term and long-term) that is supported by customer evidence in a market large enough to be meaningful for us?
2. Do we have the ability to service customers better than the competition and is our product/service better than the alternatives?
3. Can we attain acceptable margins?

If the above answers are satisfactory, I create the following outline for further consideration:

1. What is the scope of the opportunity?
2. What obstacles stand in the way?
3. What must we do to make things happen and successfully make the opportunity a reality?
4. What must we ensure DOES NOT happen if we move forward?

As you know, there is so much more to evaluate opportunities, but often there are some easy questions to consider so you can qualify what NOT to spend time on.

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