Often when we are presented with opportunities, we don’t know how to quickly work out if it is an opportunity worth pursuing. Use these three simple questions to evaluate any business opportunity: Does it align with your current goals? Do you have the available resources? Are you genuinely interested? These filters will help you identify real opportunities versus costly distractions that can prevent further progress in your business.
Key Takeaways
- Success attracts opportunities, but many are distractions that slow progress
- Apply three simple questions to filter real opportunities from time-wasters
- Alignment with current goals is the most critical evaluation factor
- Resource availability, especially time, must be honestly assessed
- Genuine interest ensures you’ll commit the energy needed for success
Why Opportunities Become Distractions
If you are someone that is able to get stuff done and you are making progress it is highly likely that many opportunities will start come your way. The challenge is, depending on where you are in your business career, many of these opportunities are distractions which will slow you down and even prevent you from making any further progress.
A good example of this was when I was in my early 20’s. I had been working really hard on getting my tourism and travel business up and running. It had been years of hard work where I had made very small continuous incremental improvements. It was only when I started to build momentum and start making some good progress that all of these amazing business opportunities seemed to present themselves to me.
In literally a couple of weeks, a business man who I had a lot of respect for approached me and asked if I would be interested in going into a partnership with him. A friend of mine invited me to an information evening about a great business opportunity. I also received a phone call out of the blue from someone who had heard about my business and wanted to do a joint venture.
I was flattered and also excited because after years of hard work it now looked like everything was suddenly going to pay off. Luckily, I applied a filter by asking three questions and was able to identify what was really an opportunity and what was going to be a distraction.
The Three Questions to Evaluate Any Opportunity
Does This Opportunity Align With Your Current Goals?
In particular, to the business in which I had just invested 2½ years building. Only one out of the three opportunities did. Goal alignment is crucial because pursuing opportunities outside your core focus dilutes your energy and resources. The Australian Taxation Office emphasises the importance of strategic business planning when evaluating new ventures.
Do You Have the Available Resources?
My scarcest resource then was time. My friend that had invited me to an information evening was trying to convince me that it would take up very little if any of my time. I knew this would not be the case. Just as a side note, it always makes me smile how much money can be made in multi-level marketing if you work really, really hard at it. The problem is however, the people that do make good money by working hard also work really, really hard at telling people how little they do work!
Resource evaluation must be brutally honest. Consider not just financial resources, but time, energy, and existing commitments. Many tradies and service business owners I work with through my Ultimate Tradie Business Transformation programme struggle with this because they underestimate the true cost of pursuing new opportunities.
Are You Genuinely Interested?
Printing hundreds of t-shirts for an ambush marketing exercise sounded exciting however it was not something I was really interested in. Genuine interest is essential because without it, you won’t maintain the energy and commitment needed when challenges inevitably arise.
How I Applied These Questions Successfully
The opportunity I took advantage of was the joint venture. I was able to answer yes to each of these three questions. The opportunity was to open up a horse safari operation offering half day, one day and overnight safaris. It complemented my tourism and travel business. It gave me more control of the supply chain, with a premium product and enabled me to better use my existing infrastructure and resources.
I was also a keen horseman and had kept my own horses at home for a number of years. Taking all of the following into account I was also able to deliver massive value to my business partner making this a worthwhile investment for both him and I.
The Reality About Opportunities
An opportunity is just a fact, not a reason. In other words, just because an opportunity presents itself, it doesn’t mean you need to take it. You first need to evaluate it and make an informed decision, otherwise it can end up being a distraction and costing you much more than you ever thought possible.
According to Australian Bureau of Statistics data on business conditions, businesses that maintain strategic focus typically show stronger growth patterns than those that diversify prematurely.
Frequently Asked Questions
How do I know if an opportunity aligns with my business goals?
Ask yourself: Does this opportunity help me achieve my current business objectives faster or more effectively? If it requires you to shift focus away from your core business without clear strategic benefit, it likely doesn’t align.
What if I don’t have the resources now but could get them?
Consider the true cost and timeline of acquiring those resources. Will pursuing this opportunity delay your current business progress? Often the cost of acquiring new resources outweighs the potential benefits of the opportunity.
Should I pursue opportunities just because they might make money?
No. Money-making potential alone isn’t enough. Without genuine interest and resource availability, you’re likely to underperform or abandon the opportunity, wasting time and resources you could have invested in your core business.
How quickly should I make a decision about an opportunity?
Take time to properly evaluate using the three questions, but don’t over-analyse. Most legitimate opportunities don’t require immediate decisions. If someone pressures you to decide quickly, that’s often a red flag.
What if I say no to an opportunity and regret it later?
Focus on maximising your current business first. Success in your core business will attract more and better opportunities. It’s better to excel at one thing than to be mediocre at many.
If you’re struggling to evaluate opportunities or want to ensure your business is positioned to attract the right ones, I’d encourage you to reach out for a conversation about how we can work together to build clarity and focus in your business.