Matrix Analysis: (Finally) Selecting Your Opportunity
Topic: Analysis, Exploration, Startups|4 Comments »
Good morning. First, sorry for the late posting, I’ve been tied up with a few things all morning. After 7 full days of blogging about opportunity selection, it’s time to finally pick the one that counts. In the coming weeks we’ll take those opportunities and turn them into a solid, viable, high growth potential business with a full fledged business plan and course of action.
I’d like to share with you a quick technique known as Matrix Analysis. Many of you might have performed one of these in school, others might be seeing this for the first time. The idea behind a Matrix Analysis is to mesh objectives with the opportunities you’ve been stewing over.
The analysis is done in grid form and is setup as follows:
- Down the left side, list your business goals
- Along the top, list your business opportunities
- Next, you’ll want to rate the match between each possible opportunity with each objective. You can use “X’s”, a number scale, or any method you like and understand.
- Now total each column
These totals will generally indicate your best prospect. I really encourage you to do this, it will only take a minute or two of your time, and it’s definitely beneficial in the entrepreneurial process.
Ok students, it’s an early release Wednesday (do you remember those?). Do your homework and I’ll see you tomorrow for a bit more in depth analysis of your selected opportunity. Class dismissed.
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July 12th, 2007 at 1:45 am
Putting down ideas on paper, namely within a matrix, provides visual insight into any creative entrepreneur’s thoughts.
Having perspective on anything, including your own ideas (as an entrepreneur) will definitely help you take the right decisions.
Here’s another tip: once your matrix is complete, draw circles around the main clusters to identify the potential synergies between your personal preferences.
A matrix is designed to be both a guide and a timesaver so it’s a good thing to do it right, the first time!
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