3. You need to perform a thorough analysis of the business environment to expose potential threats and opportunities for your business. You need to evaluate economic, legal, cultural, political and technological factors that can impact your business. Companies may not have control over the external environment but they can construct contingency plans to deal with the impact the environment on the business.
4. Competitor analysis must be performed. A new business will struggle in a market that is already saturated with competition and product substitutes. You need to build a unique selling position that motivates your target market to buy from you, instead of your competitors.
5. Once you have analyzed your target market, competitors and business environment. You need to put a strategy in place to ensure success. You must be able to generate the financial resources needed to support this strategy.
6. The business opportunity must fit in with your skills, experience and personality type. There is little hope of success if you do not have the appropriate expertise.