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April 20, 2022

The outbreak of Covid-19 was a huge blow to many companies around the world, particularly employers and employees who are yet to recover from the pandemic. It equally influenced the emergence of new small businesses as more people find self-employment more reliable.

However, starting a new business comes with risks and an intending investor must consider this alongside other factors that will ultimately decide whether the business succeeds or fails.

In this article, we consider 5 positive indicators of successful investment.

The Existence of an Underserved Market
One of the signals to watch out for when considering an investment is the existence of an underserved market or population. Wherever supplies trail demand there is always an entry opportunity for an investor. When there is a proven demand for products and there exists a supply gap, such situation constitutes an investment opportunity for a strategic investor.

More Value or Lower Price
Are you able to provide the same value or service at a lower price? Or, are you able to provide greater value at the current price? If your response to either of these questions is “yes”, then this is another indication that you are staring at a profitable investment opportunity.

Customers want to spend less for the same value or get more value for the same price. That is not all; you will also be making a wise investment decision if you are capable of providing higher quality even at a higher price than the competition. A good alternative solution may produce faster results and/or make the process easier.

Right Location
Strategic location is as important as the business idea itself. A good business will not survive in the wrong location. Your choice of location may be a strength or a weakness.  Some of the things to consider in choosing a business location include access to raw materials and skilled labour, a network of people that need the service, accessibility, and people’s perception of the location. 

Urgent Need for a Substitute
Growing displeasure among consumers towards a particular service or goods is a pointer to an investment opportunity. Such dissatisfaction may arise as a result of poor service or prohibitive prices. For instance, the drastic rise in the price of natural gas will trigger a search for cheaper alternatives. Propane, biomass, and solar energy are likely alternatives.

Knowledge and skills are acquired while working for other businesses. If you have years of experience doing similar jobs and you are known as one of the best brains in the industry, then your knowledge or expertise is something you can rely on. But wait! Technical knowledge is not sufficient.

To start and successfully manage a business certain skills are crucial, including effective communication, leadership, emotional intelligence, networking, financial accounting, marketing, negotiation and technological savviness.

Many factors can shape the outcome of an investment, some of which have been identified. However, unexpected circumstances like wars and natural disasters, though mostly unpredictable, are among unforeseen developments that may determine the fate of an investment.

Therefore, investment decisions should take into consideration the peculiarity of the concerned investment and unforeseen possibilities. More so, think of insuring the key assets of your investment.