Two types of entrepreneurs exist, generally speaking. The first type decides to start a business with a firm idea. Usually, they have prior experience within the industry, and they see a specific opportunity they want to seize. The other type knows they want to start a business, but they’re not sure which kind. That means they need to research and evaluate different business opportunities before they find the right one.
Depending on who you ask, there are several different ways to research business opportunities. Some businesses are a good fit for some entrepreneurs, but less so for others, the best way to research these opportunities may change from person to person.
One method you may want to try is what we’ll call the “Trinity Method.” Under the Trinity Method, business opportunities are judged across three different areas. The best opportunities are those that pass with flying colors in all three areas, meeting all of the criteria you need in a business opportunity.
Evaluate Business Opportunities in 3 Key Areas
So what are those three areas covered by the Trinity Method? Using this method, you’ll look at opportunities through the following three lenses:
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Financial opportunity
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Skills and experience
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Passion and motivation
Financial Opportunity
Using the Trinity Method, each area is evaluated from a present and future perspective. In essence, you ask how strong a fit the opportunity is for you now, plus what it offers you in the future.
That can easily be applied to financial opportunities. In terms of the present, you’re evaluating business opportunities based on their affordability, given your available resources.
In terms of the future, you want to identify businesses that offer strong returns on your investment. What’s the most likely return you can expect? What’s the highest? How much risk comes with your investment? What’s a realistic timeline for growth?
Skills and Experience
Finding the right opportunity as an entrepreneur isn’t simply about dollars and cents. It’s about finding the right fit for your strengths as a business owner.
When evaluating this area, we suggest looking at a few different things. In terms of skills, it’s always useful to examine your hard skills and see how they match up with different types of businesses. But in the long run, soft skills are often a much stronger predictor of success for entrepreneurs.
At the same time, you’ll want to think about your knowledge of different industries and systems, as well as your personal experience in these areas.
For businesses that seem like a good fit, but don’t align with your existing skills and experiences, ask yourself whether you can realistically develop these skills and experiences in time.
Passion and Motivation
Even if a business is an ideal fit financially and lines up with your skills and experience, it may prove a poor fit if you’re not passionate about the business.
Running a business takes a tremendous amount of time and energy. If your work doesn’t feel meaningful, you’ll struggle to find the time and energy to make the business work.
When you evaluate business opportunities, ask yourself if this is a business you can be passionate about. Will you be motivated during the early stages of business ownership when the demands on your time are generally highest? After the adrenaline rush of the early months wears off, will you be able to sustain this passion?
Choosing the Right Business Opportunities
When you use the Trinity Method to evaluate business opportunities, you should look at each area in detail. For each area of the trinity, you can draw up a list of questions, then develop a list of pros and cons for that area.
When it comes time to make a final decision, there’s only one question you really need to ask: Is this business a good fit for me in all three areas?
If a business seems like a so-so fit in every one of these areas, it’s unlikely to be the right business for you. But if it feels like a good fit financially, a strong fit for your skillset, and an outlet for your passions, then you should start seriously considering it.
Learn more about Visiting Angels® home care business opportunities by calling 800-365-4189 or submitting an online request.
