Ability to create barrier to entry for potential competitors

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Reference no: EM13966247

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

Reference no: EM13966247

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