Did you know venture capital investors reject about 98% of the business ideas pitched to them? That means that for every 100 great new business ideas we might come up with, only two are likely to be business opportunities. Yikes!
A great business idea doesn’t automatically ensure a good business opportunity. So, how can you tell the difference?
A business idea is a business opportunity only if it can make a profit for you.
To us, a good business opportunity is represented by four pillars:
- The product or service must add significant value to a customer or end user
- The product or service must solve a significant problem or satisfy a significant want or need
- The product or service must have money-making characteristics
- The business idea should be a good fit with your four capital factors: human capital (skills, knowledge and abilities you’ve developed through your career); sociological capital (your networks and support groups); psychological capital (your attitudes, values, opinions and beliefs); and financial capital.