On a walk yesterday in the Perimola region of Catalunya, about 2 hours drive from Barcelona. We went on a hike up to the hermitage of Castell Llebre.
My friend Mathieu Carenzo teaches Entrepreneurship at IESE Business School and is an early stage investor in many successful spanish startups, including some Unicorns. He shared 4 keys to identify a great business opportunity…
The 4 Keys to Identify a Great Business Opportunity
- Market: People need you. Your product or service solves a real pain in the lives of potential customers. The people with the pain have decision power over the money.
- Talent: You can get Resources. Computing resources, people with skills, infrastructure, good supplier network. You will be able to systematically deliver on your promises.
- Profit: Revenue greater than Costs. You have an ability to produce the product for less cost than the market is able to pay.
- Timing: The Market is ripe. If your idea comes too early and customers aren’t ready for it, they won’t change. If your idea comes too late and there are already a number of different competitors in front of your target customers, you won’t be able to squeeze in.
Entrepreneurship and Small Business
I’ll be making a number of videos over the coming weeks and months addressing the challenges of starting a business. There has been huge growth in new business formation in the US during Covid lockdown. One suggestion is that the government handouts of money have given many people the cushion of a couple of months they need to set up their own business. Entrepreneurship is not an easy ride, but it can be a path to a meaningful and rewarding life experience.
If you liked this post, you will also like reading Can we teach entrepreneurs? and entrepreneurial sales: overcoming the 3 major objections.