EVALUATING THE MARKETCriteria for Evaluating Business Opportunities
The following tool provides a quick indication of
market potential for your business, product or service in your area. The higher
figure at Step 6.,
better
opportunity.
A low score does not mean you should drop your idea altogether. It does, however, indicate that in its current form, there is not a large market opportunity for your concept, and to enter
market in its present state you may be taking a large risk.
Likewise, a high score is not an automatic green light. Proceed with caution – check your operational and financial feasibility as well. Get second and third opinions before proceeding.
BEST WISHES WITH YOUR ENDEAVOURS!
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QUICK MARKET EVALUATION
1. Are you selling to individuals, households or businesses?
2. What is
population of these customers in your target geographical location?
3. How much, in an average year, do customers spend on your product/service?
4. Find
total potential sales for
region by mulitplying (2) x (3).
5. How much is currently purchased in
region?