Part 1: Strength of Business Idea 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: a) Takes advantage of an environmental trend b) Solves a problem ? c) Addresses an unfilled gap in the marketplace :
Weak Moderate Strong
2. Timeliness of entry to market : Not timely Moderately timely Very timely
3. Extent to which the idea “adds value” for its buyer or end user: Low Medium High
4. Extent to which the customer is satisfied by competing products that are already available:
Very satisfied Moderately satisfied Not very satisfied or ambivalent
5. Degree to which the idea requires customers to change their basic practices or behaviors :
Substantial changes required Moderate changes required Small to no changes required
6. Number of competitors: Many Few None
7. Stage of industry life cycle: Maturity phase or decline phase Growth phase Emergence phase
8. Growth rate of industry: Little or no growth Moderate growth Strong growth
9. Importance of industry’s products and/or services to customers:
“Ambivalent” “Would like to have” “Must have”
10. Industry operating margins: Low Moderate High
11. Identification of target market for the proposed new venture:
Difficult to identify May be able to identify Identified
12. Ability to create “barriers to entry” for potential competitors:
Unable to create May or may not be able to create Can create
13. Purchasing power of customers: Low Moderate High
14. Ease of making customers aware of the new product or service: Low Moderate High
15. Growth potential of target market: Low Moderate High
16. Founder or founders experience in the industry: No experience Moderate experience Experienced
17. Founder or founders skills as they relate to the proposed new venture’s product or service:
No skills Moderate skills Skilled
18. Extent of the founder or founders professional and social networks in the relevant industry:
None Moderate Extensive
19. Extent to which the proposed new venture meets the founder or founders personal goals and aspirations: Weak Moderate Strong
20. Likelihood that a team can be put together to launch and grow the new venture:
Unlikely Moderately likely Very likely