How To Build An Evaluation Matrix To Assist You In Selecting A Business Opportunity By Jim Razz
September 9, 2009 by admin
Filed under Jim's Blog
When you’re considering whether you want to join an Internet-based business opportunity there are a host of factors to evaluate. Have you given any thought to formalizing what those factors may be, BEFORE you begin your search?
This piece borrows some techniques used by all levels of government to assure that it’s getting the “best value” when it acquires resources. This process is most commonly referred to as “source selection.”
We’ll employ many of these same methods to stimulate thinking on your part. My hope is that you will use the information to build a set of criteria that you can actually use to assist you in your “due diligence” efforts.
This process is 100 percent generic. It is not slanted towards any type of business and I have no business opportunity to promote.
Your first step is make a list of the high-level Criteria that are important to you. Here is a list of ten that may be relevant to you. Your list may be shorter; it’s really up to you.
- Compatibility (with your interests)
- Skills Needed
- Income Potential
- Compensation System
- Company Viability
- Business Partner
- Products
- Portability
- Scalability
- Cost
The next step in the process is to put your Criteria in descending order of importance. That is, ordered from most important to least important. In the interest of brevity, I’ve done that already with the list above, but your version of this might be different.
Virtually all the authorities in this field will tell you that your top Criteria ought to be to find a business in an area that is of keen interest to you–something you’re passionate about–and a business that’s compatible with your skill set and experience.
Stephen Wright in his 2006 article entitled “Top 5 Criteria for Choosing an Ideal Home Based Business” said this:
Personally, I have talked with literally hundreds of home based business owners – some who were very successful, others who quite frankly were struggling and failing miserably with their home business activities at the time of the discussions.
An overwhelming number of those who were successful used one or both of Criteria 1 & 2 as the basis for starting their business. Likewise, the vast majority of the failed businesses used neither. Coincidence? I think NOT!
By the way, in case you are interested—-profits and “making money” were the Number 1 criteria most common for the failed businesses.
Criteria 1 and 2 mentioned by Mr. Wright are the same number 1 and 2 Criteria in my list above: Compatibility and Skills Needed.
To view the remainder of this post, which includes a template to download, go to http://jimrazz.com/EvalMatrix.
