Whatever you need to know about the opportunity
After applying initial screening questions, you would then select opportunities that are worth considering. They will create your Market Opportunity Set. Remember that:
“A market opportunity is a combination of application as well as the customers”
Now you know both of them. therefore, you need to write down the top three market opportunities you select on a paper:
Opportunity No.1:
Opportunity No.2:
Opportunity No.3:
Imagine each opportunity as a sea. Now the next question would be: in which sea is easier to fish and are more fishes to catch? To find, you shall have two factors in your mind: Potential of that market and challenges you will have to catch.
2.3.1. Potentials of Opportunities:
In Module one, you gather information about your market in general. Hence, you now know about sea size as well as its depth and in this module, you made your opportunity. Now we combine the three factors to understand the potential of the opportunity number 1.
In addition to that, to have a reliable decision, we shall have a scale system. Now coming back to Module one, you remember we used the CEMBEL system to identify the size of the market. So, use your prepared information and scale each question:
(1 is lowest, 6 is highest)
1- Is your proposed solution, idea, product, or service better than the ones already present in the market?
2- How big is your market size? (Market size)
3- How wealthy are your customers? (Market depth)
By adding these three numbers and then divide them into three, you will get an average number that would be your potential score for option 1.
Knowing about the potential is not enough and you should also assess the challenges.
2.3.1. Challenges of Opportunities:
In the business world, challenges could always be found out there. In short, solving these problems will improve your income as well as the business. Similar to the potential score, you should also find your challenge score. Therefore, the three important questioned to be answered involves finding out the challenge score:
(1 being the lowest and 6 being the highest)
1- How difficult is your idea, service, or product to implement or perform? E.g. Do you need special expertise? Do you need special machinery or technical equipment? (It has been implied since implementing is harder and the score also increases).
2- Since implementing your service, how much time do you need for the first revenue? (More time, more score)
3- How many external risks do you have? e.g. Does performing your idea depend on someone else? Is there any risk like financial crises or political situation which may have an effect on your business? (Higher the risk factors, more would be the scores)
Perfect. By calculating scores, now you would also have your average challenge score.
Ok! Now is the time to decide what to do with all of these numbers that you have gathered so far. Please notice that the steps used for option 1 need to be followed to find out your challenge and potential Scores.
