How To Construct An Evaluation Matrix To Assist You In Selecting A Home-Based Business
September 10, 2009 – 8:46 am
When you’re considering whether you want to get involved in an Internet-based business opportunity there are a host of things to evaluate. Have you given any thought to formalizing what those things may be, BEFORE you start your search?
This piece borrows some techniques used by all levels of government to assure that it’s getting the “best value” when it buys goods and services. This practice is most commonly referred to as “source selection.”
We’ll utilize many of these same tactics to stimulate thinking on your part. My hope is that you will use this information to craft a set of criteria that you can actually use to assist you in your “due diligence” efforts.
This process is totally generic. It is not slanted towards any type of business and I have no business opportunity to promote.
Your first step is make a list of the high-level Criteria that are vital to you. Here is a list of ten that may be applicable to you. Your list may be more simple; it’s really up to you.
- Compatibility (with your interests)
- <Skills Needed
- Income Potential
- Compensation System
- Company Viability
- Business Partner
- Products
- Portability
- Scalability
- Cost
The next part in the process is to put your Criteria in descending order of importance. That is, ordered from most important to least important. In the interest of brevity, I’ve done that already with the outline above, but your rendering of this might be dissimilar.
Virtually all the experts in this field will tell you that your top Criteria ought to be to find a business in an area that is of sharp interest to you–something you’re passionate about–and a business that’s compatible with your skill set and experience.
Stephen Wright in his 2006 article entitled “Top 5 Criteria for Choosing an Ideal Home Based Business” said this:
Personally, I have talked with literally hundreds of home based business owners – some who were very successful, others who quite frankly were struggling and failing miserably with their home business activities at the time of the discussions.
An overwhelming number of those who were successful used one or both of Criteria 1 & 2 as the basis for starting their business. Likewise, the vast majority of the failed businesses used neither. Coincidence? I think NOT!
By the way, in case you are interested—-profits and “making money” were the Number 1 criteria most common for the failed businesses.
Criteria 1 and 2 mentioned by Mr. Wright are the same number 1 and 2 Criteria in my list above: Compatibility and Skills Needed.
To view the rest of this post, which includes a spreadsheet to download, go to http://jimrazz.com/EvalMatrix/.
You must be logged in to post a comment.