Part l: Strength of Business Idea

First Screen

Part l: Strength of Business Idea

. CHAPTER 3 I FEASIBILITY ANALYSIS 127

For each item, circle the most appropriate answer and make note of the (-1 ), (0), or(+ 1) score.

Low Potential (-1) Moderate Potential (0) High Potential (+1)

1. Extent to which the idea: Weak Moderate Strong • Takes advantage of an environmental trend • Solves a problem • Addresses an unfilled gap in the marketplace

2. Timeliness of entry to market Not timely Moderately timely Very timely

3. Extent to which the idea “adds value” for its buyer Low Medium High or end user

4. Extent to which the customer is satisfied by Very satisfied Moderately satisfied Not very satisfied or competing products that are already available ambivalent

5. Degree to which the idea requires customers Substantial Moderate changes Small to no changes to change their basic practices or behaviors changes required required required

Part 2: Industry-Related Issues

Low Potential (-1) Moderate Potential (0) High Potential (+1)

1. Number of competitors Many Few None

2. Stage of in ustry life cycle Maturity phase Growth phase Emergence phase or decline phase

3. Growth rate of industry Little or no growth Moderate growth Strong growth

4. Importance of industry’s products and/or “Ambivalent” “Would like to have” “Must have” services to customers

5. Industry operating margins Low Moderate High

Part 3: Target Market and Customer-Related Issues

Low Potential (-1) Moderate Potential (0) High Potential (+1)

1. Identification of target market for the proposed Difficult to identify May be able to Identified new venture ide’fltify

2. Ability to create “barrie-ys to entry” for potential Unable to create May or may not be Can create competitors able to create

3. Purchasing power of customers Low Moderate High

4. Ease of making customers aware of the new Low Moderate High product or service

5. Growth potential of target market Low Moderate High

Part 4: Founder- (or Founders-) Related Issues

1. Founder’s or founders’ experience in the industry

2. Founder’s or founders’ skills as they relate to the proposed new venture’s product or service

Low Potential (-1) Moderate Potential (0) High Potential (+1) 1

No experience

No skills

Moderate experience

Moderate skills

Experienced

Skilled

(continued)

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