For any entrepreneur or business owner, taking advantage of a new business opportunity carries with it both risk and reward. Anyone looking at potential new possibilities for his business should carefully and accurately assess whether the risk is worth the reward. When an opportunity first appears, it can be hard to know for sure. A person can figure out if a new business opportunity is right by asking a few questions and assessing the capital reserves and labor reserves of his business as well as its ability to take on a new opportunity at the present moment.
It is important to honestly assess the financial risk of any new opportunity. Know if it requires investment or start-up capital and how much. Know if it requires time to be devoted to new product development. If the answer to either of those questions is yes, any entrepreneur or business leader should have a realistic understanding of how much cash or labor the emerging opportunity will need. If the new opportunity needs little to no resources and offers the possibility for a worthwhile financial reward, a smart business leader should take advantage.
If, on the other hand, the new possibility seems labor-intensive or demanding of cash or other resources, it would be wise to either hold off or look closer at the feasibility of taking on the opportunity. Accurately assess whether the business has the ability to take on additional work using its current resources. Do research upfront and know the business’s monthly profit and loss as well as the capabilities of its labor force. No business gains when it becomes depleted of necessary financial resources to the point that it can not continue without the addition of more capital.
The goal when a new business opportunity arises should be to grow the existing business at a comfortable rate that the business can maintain over time.