urs should spend more time conducting an honest assessment of their expertise, management style, risk tolerance, and temperament when deciding whether or not to become entrepreneurs. It is hard to convince people to take the time to perform this self-assessment, but it is a critical step and can mean the difference between a rewarding experience as an entrepreneur and an unfortunate outcome (Champlain, 10).
Part of the selection process involves market research to determine if there is sufficient demand for the goods or services the company would offer. Part of the selection process involves determining whether the individual is ready to become an entrepreneur. It requires a leap of faith to give up the security of working for someone else to pursue a new business opportunity.
There are some basic guidelines in identifying new venture opportunities, and many of them are common sense. The guidelines include:
Do not consider starting a business in an industry or business about which you have no direct knowledge or experience.
Do not start a business with inadequate capital reserves
Look at both the upside and the downside risks when performing financial forecasts as part of your due diligence.
Remember that marketing and sales are essential to the success of any new business. An entrepreneur may be experienced in any number of disciplines, but if they are unable to market themselves and their products or services, the company is likely to fail.
Try to avoid businesses with high visibility and low barriers to entry, such as a video store. The problem is that this combination of ease of entry and low visibility can attract additional competitors reducing the chances that any company will be successful.
When evaluating potential new ventures, pay close attenti
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