Screen your business ideas

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:
• Takes advantage of an environmental trend
• Solves a problem
• 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
Low
Moderate
High

Part 2: Industry-Related Issues
Low Potential (-1)
Moderate Potential (0)
High Potential (+1)

1.
Number of competitors
Many
Few
None
2.
Stage of industry life cycle
Maturity phase or decline phase
Growth phase
Emergence phase
3.
Growth rate of industry
Little or no growth
Moderate growth
Strong growth
4.
Importance of industry’s products and/or services to customers
“Ambivalent”
“Would like to have”
“Must have”
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 new venture
Difficult to identify
May be able to identify
Identified
2.
Ability to create “barriers to entry” for potential competitors
Unable to create
May or may not be able to create
Can create
3.
Purchasing power of customers
Low
Moderate
High
4.
Ease of making customers aware of the new product or service
Low
Moderate
High
5.
Growth potential of target market
Low
Moderate
High

Part 4: Founder- (or Founders-) Related Issues
Low Potential (-1)
Moderate Potential (0)
High Potential (+1)

1.
Founder or founders experience in the industry
No experience
Moderate experience
Experienced
2.
Founder or founders skills as they relate to the proposed new venture’s product or service
No skills
Moderate skills
Skilled
3.
Extent of the founder or founders professional and social networks in the relevant industry
None
Moderate
Extensive
4.
Extent to which the proposed new venture meets the founder or founders personal goals and aspirations
Weak
Moderate
Strong
5.
Likelihood that a team can be put together to launch and grow the new venture
Unlikely
Moderately likely
Very likely
Part 5: Financial Issues
Low Potential (-1)
Moderate Potential (0)
High Potential (+1)

1.
Initial capital investment
High
Moderate
Low
2.
Number of revenue drivers (ways in which the company makes money)
One
Two to three
More than three
3.
Time to break even
More than two years
One to two years
Less than one year
4.
Financial performance of similar businesses
Weak
Modest
Strong
5.
Ability to fund initial product (or service) development and/or initial startup expenses from personal funds or via bootstrapping
Low
Moderate
High

Overall Potential
Each part has five items. Scores will range from -5 to +5 for each part. The score is a guide—there is no established rule-of-thumb for the numerical score that equates to high potential, moderate potential, or low potential for each part. The ranking is a judgment call.
Score
(-5 to +1)
Overall Potential of the Business Idea Based on Each Part
Suggestions for Improving the Potential

Part 1:
Strength of Business Idea
High potential
Moderate potential
Low potential
Part 2:
Industry-Related Issues
High potential
Moderate potential
Low potential
Part 3:
Target Market and Customer-Related Issues
High potential
Moderate potential
Low potential
Part 4:
Founder- (or Founders-) Related Issues
High potential
Moderate potential
Low potential
Part 5:
Financial Issues
High potential
Moderate potential
Low potential
Overall Assessment
High potential
Moderate potential
Low potential

Summary—briefly summarize your justification for your overall assessment:



Feasibility Analysis Adapted from “Preparing Effective Business Plans” by Bruce R. Barringer