However, if you want to place more weight on personal preference, then you can Watch the Video!

either drop all opportunities that score less than 3 points on for personal preference or
double the number of those points and rank the opportunities on a 20-point scale, as
in Example B below.

The following rating of two potential ventures indicates that Opportunity 5 is superior
to Opportunity 3 if the three factors are given equal weight (Example A). The rating
system indicates that Opportunity 5 has more merit even though it has a lower
personal preference rating. In Example B, personal preference is given twice the
weight of the other factors. In this case, the additional weight for personal preference
results in both opportunities being tied with 15 points.

Example A: Equal Weighting for All Three Factors

Opportunity #3:

Personal preference (4) + Financial worthiness (4) + Perceived risk (3)

= 4 + 4 + 3 = 11 points out of 15 possible points

Opportunity #5:

Personal preference (3) + Financial worthiness (5) + Perceived risk of

(4) = 3 + 5 + 4 = 12 points out of 15 possible points

Example B: Higher Weighting for Personal Preference

Opportunity #3:

Personal preference (4 x 2) + Financial worthiness (4) + Perceived risk

(3) = 8 + 4 + 3 = 15 points out of 20 possible points

Opportunity #5:

Personal preference (3 x 2) + Financial worthiness (5) + Perceived risk

(4) = 6 + 5 + 5 = 15 points out of 20 possible points

Ranking the opportunities on the 15-point scale will point to the best opportunity for
you at this time. Hopefully, the best opportunity scored at least 10 points on the 15-
point scale, with no factor receiving a score of less than 3 points. If none of the
opportunities scored 10 or more points, then you have three course of action:

You can accept the best opportunity, even though it scored less than 10 points (but
you should avoid this temptation).
Start the whole six-step process all over again.
View the time you invested in pursuing a business opportunity as a learning
experience.
You've just learned a valuable process for evaluating possible business
opportunities. If you started this course with a set business idea in mind and it
passed the six-step test with flying colors, good for you! If not, back to the drawing
board.

Moving Forward

We've covered a lot! Completing the associated assignment and quiz for Lesson 2 will