| > | | | | 6. Subtract current local spend from total potential |
| EVALUATING THE MARKET | | | | sales to discover if there is room in the market for |
| Criteria for Evaluating Business Opportunities | | | | new players? |
| The following tool provides a quick indication of the | | | | NOTES: |
| market potential for your business, product or | | | | 2.Population information of individuals and households |
| service in your area. The higher the figure at Step 6., | | | | can be obtained from the Bureau of Statistics. |
| the better the opportunity. | | | | Population of businesses might be available from local |
| A low score does not mean you should drop your | | | | government, chamber of commerce, Bureau of |
| idea altogether. It does, however, indicate that in its | | | | Statistics, Yellow Pages or White Pages. |
| current form, there is not a large market opportunity | | | | 3.Average spend may be available from the Bureau |
| for your concept, and to enter the market in its | | | | of Statistics, Industry groups, Market Researchers |
| present state you may be taking a large risk. | | | | (such as Ibisworld — Euromonitor) or different |
| Likewise, a high score is not an automatic green light. | | | | levels of government. |
| Proceed with caution — check your operational | | | | 5.Regional spend numbers may be more difficult to |
| and financial feasibility as well. Get second and third | | | | obtain. Try local governments, local branches of |
| opinions before proceeding. | | | | industry groups, and chambers of commerce. It may |
| BEST WISHES WITH YOUR ENDEAVOURS! | | | | be necessary to stake out a few similar businesses |
| QUICK MARKET EVALUATION | | | | and watch how much customers spend and multiply |
| 1. Are you selling to individuals, households or | | | | by outlets! Its also amazing how much information an |
| businesses? | | | | unsuspecting shop assistant or manager might be |
| 2. What is the population of these customers in your | | | | happy to pass on if asked a general question about |
| target geographical location? | | | | how business is going! |
| 3. How much, in an average year, do customers | | | | 6.If less is being spent in your area than the |
| spend on your product/service? | | | | calculated total potential sales figure, then there is a |
| 4. Find the total potential sales for the region by | | | | good chance that there is a market demand for your |
| mulitplying (2) x (3). | | | | business in this area. |
| 5. How much is currently purchased in the region? | | | | |