Investors consider hundreds of businesses before making an investment decision and they learn to do so objectively and with discipline. Business professionals must do the same when they too are about to make a sizeable investment of time, energy, and resources. The factors to consider should include the following:
Probability of success and size of payoff. It will generally take the same energy and time to pursue a good opportunity as one with little likelihood of success and a low payoff.
Resources required. Each opportunity requires critical resources in order to be developed. These resources will include money but also time and specific skill sets. Choose opportunities that closely match available resources.
Timing is everything. There is a time frame associated with each opportunity. Pursuing an opportunity of great value at the wrong time will result in failure regardless of its overall merits.
Evident fatal flaw. One final consideration is making sure the opportunity is not marred by a fatal flaw—some element that predicts failure such as overly entrenched competitors, current vendors, or suppliers who are better positioned to meet customer needs, or an entity in the supply chain that is better able to offer the solution.
T. Craig Bott, President and CEO
Grow Utah Ventures
Salt Lake City, Utah
Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.
To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.