Every business idea should undergo the litmus test of analysis before one settles for or even launches it. Data driven analysis should support the justification to go in a given direction. In fact, a fundamental yardstick for that decision should be that the pros outweigh the cons.
Even with great care in selecting and much analysis in choosing the right business, the unforeseen challenges on the ground can be enough to bring down the best-laid plans. Chances of a business idea that has not been thoroughly scrutinized being successful are often close to none.
A pros and cons analysis is a practical place to start when considering a business idea. For instance, if the business idea in question was opening a roofing company in your state, the fundamental question would be whether there is need for that service and whether the advantages outweigh disadvantage right;
Let’s examine the pros and cons of such a venture
Pros of starting a roofing company in the area
- There is availability of a skilled workforce that is qualified and certified
- You know and have all the requirements needed by the state to be licensed and operate as a legitimate and professional roofing company
- There is no roofing company in your area and only two other alternative roofing companies’ statewide
- Many new constructions are coming up and many repair and re-roofing opportunities of existing roofs in the state.
- The timing is right because at present demand outweighs supply and that situation is not about to change unless other roofing companies open in the area
- The new business is aimed at positioning itself firmly in the market by offering standard roofing services in addition to Eco-friendly options which no other roofing company is offering statewide
- The teamwork ethic is remarkable with emphasis on punctuality, exceeding expectation on craftsmanship and personable service while working within deadlines
Cons of starting a roofing company in the area
- Starting capital for acquiring material and paying salaries for the first 4 months is steep
- Licensing is a rigorous process, and you have to have the required education and certification in-order to be licensed
In the case of the business idea above, the pros clearly outweigh the cons, meaning that the notion can be given further consideration as it looks feasible.
One of the things that an entrepreneur must learn when considering a business venture is separating opinion from fact with respect to market opportunities. As such, he must find a way to verify facts and statistics to make a solid analysis that will lead to accurate decision-making.
Additional Reading: 8 Online Business Ideas You Can Start Tomorrow