In a perfect world, we could simply develop our ideas and seek to make connections with clientele, assuming our concepts will take off and that demand will soar. When asking, however, for investment dollars, we need to be more diligent in our approach and conduct diligent research prior to doing business. For this reason, the opportunity analysis is integral to seeking funding and cannot be skipped.
Your products will require outlay in both monetary terms and in the realm of human resources. Your organizational requirements will vary, depending on the objective and size of your effort. Researching this will help you assess the feasibility of your goals and allow you to adjust them if needed. This process can also help you adjust your management strategies, capitalizing on the skills of your employee base to the best extent possible. Fidelman and Co. provides assistance with this component of your research.
Beyond the early, exciting stages is an entire phase where sustainability will become the preeminent factor. After you get those initial customers and feedback, you will want a system whereby you can most passively receive income without having to put in as much work.
Building your framework with scalability in mind means that you anticipate continued and increased revenue based on demand, and it means you can fulfill your orders promptly and without interruption. It is imperative that you learn whether your offer can be replicated to scale and if you have sufficient supplies to do this or can obtain them.
The cost of doing business over the long term will provide a counterpoint to the income you hope to receive. Your buyer cycle will also fluctuate, and you’ll need to plan for these ups and downs. Figuring out averages over the course of the year will be necessary, as you can ride out the lean periods with revenue acquired during your busy season. Your total operating overhead must be accounted for, including advertising, shipping, interest, taxes, and the cost in purchasing goods.
This is where you dig deep and flesh out the proposed product as a three-dimensional object. You’ll need to understand the why behind what you’re creating and how it will impact your prospective customer. You will need to be as detailed as possible regarding every facet of your creation so that nothing is left up to chance. As you investigate the properties of your design, you’ll also have the chance to fix any bugs that may arise.
To operate most effectively, you’ll need to channel your efforts to garner the largest ROI or return on investment. Understanding your core base is central to this endeavor, as you’ll have a readymade method for reaching your customers. You can determine whether their needs may change and how you will shift your efforts to meet these challenges.
In addition, you’ll need to ascertain the ages of your clientele, their unique perspective that engenders them to want to engage with your company, and whether there are ways in which your presentation can improve. Your customers may also not be solely individuals but may also include corporations, companies, schools, churches, restaurants, or other institutions.
Your opportunity analysis is a piece of the puzzle that allows venture capitalists and other investors know more about your trajectory so they can best figure out where they fit in your story.