What are the evaluation methods of entrepreneurial opportunities?

Market evaluation method and benefit evaluation method.

Market evaluation criteria:

1, market positioning: A good entrepreneurial opportunity must have a specific market positioning, focus on meeting customer needs, and bring value-added effects to customers. Therefore, when evaluating entrepreneurial opportunities, we can judge the market value that entrepreneurial opportunities may create through whether the market positioning is clear, whether the customer demand analysis is clear, whether the customer contact channels are smooth, and whether the products are continuously derived.

2. Market structure: analyze the market structure of entrepreneurial opportunities from five aspects, including entry barriers, bargaining power of suppliers, customers and distributors, threat of replacing competitive products, and competition intensity within the market.

3. Market size: Market size and growth rate are also important factors affecting the success or failure of new enterprises. Generally speaking, if the market is large and the entry threshold is relatively low, the intensity of market competition will be slightly reduced.

4. Market penetration: For an entrepreneurial opportunity with huge market potential, the evaluation of market penetration (the process of realizing market opportunities) will be a very important influencing factor.

5. Market share: The expected market share target from the entrepreneurial opportunity can show the future market competitiveness of the startup company. Generally speaking, in order to become a market leader, you need to have at least 20% market share. However, if the market share is less than 5%, the market competitiveness of this new enterprise is not high, which will naturally affect the value of listing in the future.

6. Cost structure of products: The cost structure of products can also reflect whether the prospects of new enterprises are bright.

Benefit evaluation criteria:

1. Reasonable after-tax net profit: Generally speaking, attractive entrepreneurial opportunities need to create at least 15% after-tax net profit.

2. Time required to achieve breakeven: A reasonable breakeven time should be achieved within two years, but if it is not achieved within three years, I am afraid it is not an entrepreneurial opportunity worth investing. However, some entrepreneurial opportunities do take a long time to cultivate. Through these initial investments, barriers to entry are created to ensure sustained profitability in the later period. In this case, upfront investment can be regarded as an investment that tolerates long-term break-even time.

3. Return on investment: Considering the possible risks of starting a business, a reasonable return on investment should be above 25%. Generally speaking, the return on investment below 15% is not worth considering.