Interactive Feasibility Analysis

Feasibility Analysis

Idea Summary

Briefly describe your business idea.

Part 1: Strength of Business Idea

Score: 0/20

Criteria	Potential
1. Extent to which the product/service takes advantage of external trends: sociological, technological, economic or political and regulatory changes	Low (0) Does not take advantage of any trends. Moderate (1) Takes advantage of trends but they are not high impact. High (2) Takes advantage of significant high impact trends.
2. Extent to which the product/service fills a gap in the market (supply vs demand)	Low (0) There is no gap to fill. Moderate (1) There is a minor gap that it fills. High (2) Fills a prominent gap in the market.
3. Extent to which the product/service solves a problem or need in the marketplace	Low (0) There is no problem to solve. Moderate (1) Solves a problem for some. High (2) Solves a very common problem.
4. How would you describe the "window of opportunity" for this market? ("Timeliness of entry into market")	Low (0) Low potential - misses window Moderate (1) Some potential - within window High (2) High Potential - new window
5. Extent to which the idea "adds value" for its buyer or end user	Low (0) Adds no value Moderate (1) Adds moderate value High (2) Adds significant value
6. How satisfied are potential customers with competing products/services?	Low (0) Very satisfied Moderate (1) Moderately satisfied or ambivalent High (2) Not very satisfied
7. Will customers be required to make any changes to current behaviors or practices?	Low (0) Substantial changes required Moderate (1) Moderate changes required High (2) Small to no changes required
8. Can customers purchase upgrades, add-ons, premium services, etc.?	Low (0) There are none available at this time. Moderate (1) There is one upgrade, add-on, or premium service available. High (2) There are multiple upgrades, add-ons, or premium services available.
9. Extent to which the idea requires research or technological infrastructure.	Low (0) Extensive research or technological infrastructure is required. Moderate (1) Moderate research or technological infrastructure is required. High (2) Minimal research or technological infrastructure is required.
10. How complex is the idea? How difficult is it to explain the idea to other people and for them to understand?	Low (0) Complex and difficult to explain. Moderate (1) Somewhat complex but easy to explain and understand. High (2) Simple and easy to explain and understand.

Analysis

Provide analysis on the strength of your business idea and why you believe investors should invest in you and your idea.

Part 2: Industry-Related Issues

Score: 0/20

Criteria	Potential
1. Number of direct competitors in the industry	Low (0) Many Moderate (1) Few High (2) None
2. Number of indirect competitors and other alternatives in the industry	Low (0) Many Moderate (1) Few High (2) None
3. What life cycle stage is the industry in?	Low (0) Maturity Phase or Decline Phase Moderate (1) Growth Phase High (2) Emergence Phase
4. What type of growth is the overall industry experiencing?	Low (0) Little to no growth Moderate (1) Moderate growth High (2) Strong growth
5. How important are products/services in this industry to your target market?	Low (0) Customers in the target market are “ambivalent” towards them or don’t need them at all. Moderate (1) Customers in the target market “would like to have” them. High (2) Customers in the target market “must have” them.
6. Overall, out of every $10/$100/$1,000 earned, how much does a company keep after all expenses are paid?	Low (0) $0-3 / $0-33 / $0-330 Moderate (1) $4-6 / $34 - 66 / $340 - 660 High (2) $7-10 / $67 - 100 / $670 -1,000
7. How controversial are products/services in this industry?	Low (0) Very controversial and may even have preventive regulatory barriers or lawsuits Moderate (1) Somewhat controversial but no barriers are seen in the near future High (2) Not controversial, no hurdles or preventive regulatory barriers or lawsuits
8. How frequently do customers make purchases in this industry?	Low (0) Every Few Years or Once in a lifetime Moderate (1) Monthly or Yearly High (2) Daily or Weekly
9. What is the likelihood that copies could flood the industry?	Low (0) Very Likely Moderate (1) Somewhat Likely High (2) Not Likely
10. Are there ways that you could create "barriers to entry" to keep competitors and potential competitors from copying your idea?	Low (0) No, we are unable to create them. Moderate (1) We may be able to create them. High (2) Yes, we can create them.
11. B1: Are competitors in this industry satisfying customers or have there been complaints about competitors that your company could provide solutions for?	Low (0) Customers are extremely satisfied and there are few complaints. Moderate (1) Customers are somewhat satisfied and there are some complaints. High (2) Customers are dissatisfied with competitors and there have been many complaints.

Analysis

Address the number of competitors in your industry and identify them. Explain why you consider there to be few or none, and if there are many, what makes you different? What is your competitive advantage, your uniqueness, what makes you stand out?
Why would/should customers choose you over the competition or just doing/making the service/product themselves?
If customers NEED your product/service, stress this here.

Part 3: Target Market and Customer-Related Issues

Score: 0/20

Criteria	Potential
1. Are you able to identify, describe and quantify your target market?	Low (0) It is difficult to identify, describe and quantify Moderate (1) May be able to identify, describe and but possibly not quantify High (2) Can identify, describe and quantify our target market
2. How would you describe the population trend of your target market?	Low (0) Small or Declining Moderate (1) Moderate to Large and Stable High (2) Moderate to Large and Growing
3. How loyal are potential customers to competing brands?	Low (0) Extremely Loyal Moderate (1) Somewhat Loyal High (2) Not Loyal or Ambivalent
4. How much disposable income does your target market have?	Low (0) Target market has little to no disposable income. Moderate (1) Target market has some or variable disposable income. High (2) Target market has significant disposable income.
5. Once purchased, how often would customers repurchase or make payments for your products/services?	Low (0) Yearly or more Moderate (1) Quarterly High (2) Daily, Weekly or Monthly
6. How likely are customers to choose your product/service over a trying to do it themselves?	Low (0) Not Likely Moderate (1) Somewhat Likely High (2) Very Likely
7. How relatable is your product/service to your target market?	Low (0) Not very relatable Moderate (1) Somewhat relatable High (2) Extremely relatable
8. How many avenues are available to make potential customers aware of your product/service?	Low (0) 0 - 2 identified Moderate (1) 3 - 5 identified High (2) 6+ identified
9. Is your idea or target market susceptible to seasonal ups and downs?	Low (0) Yes, there are times when sales may slump due to seasonal traffic. Moderate (1) There may be seasonal ups and downs but ramp up ideas can offset slumps. High (2) No, there are no seasonal traffic issues.
10. How easy is it for your target market to purchase similar products/services online?	Low (0) Very Easy Moderate (1) Somewhat Easy High (2) Very Difficult

Analysis

Describe your target market using primary and secondary dimensions of diversity. Also consider any other subsets (for example, iPhone vs Android users, etc.)
Try to come up with actual numbers (data/statistics) regarding how many people are in this target population and site your sources using footnotes.
Describe exactly how you plan on making customers aware of your product/service. Consider your marketing tactics and how you will find new customers/clients.
NOTE: Always ask yourself “HOW?” Elaborate until you can’t answer that question anymore.
For ex: “We will market using social media.” HOW? Revised: “We will launch ad campaigns on Facebook and create a blog on our website.”

Part 4: Founder(s) & the New Venture Team (NVT) Related Issues

Score: 0/20

Criteria	Potential
1. Founder(s)/ NVT experience in the industry with similar products/services or with problems the new venture is solving.	Low (0) No Experience Moderate (1) Moderate Experience High (2) Well Experienced
2. Founder(s)/NVT skills or competencies necessary to launch and grow the new venture	Low (0) No skills/ competencies are possessed Moderate (1) Some skills/ competencies are possessed High (2) Numerous skills/ competencies are possessed
3. Extent to which the founder(s)/NVT has experience with starting new ventures	Low (0) Founder(s) has never started nor received any education on starting a new venture Moderate (1) Founder(s) has received some education on starting a new venture High (2) Founder(s) has previously started a new venture
4. What is the founder(s)/NVT extent of social capital in the industry or a related industry?	Low (0) No Social Capital Moderate (1) Some Social Capital High (2) Significant Social Capital
5. Has the founder(s)/NVT identified ways to increase social capital and networks in the industry or a related industry?	Low (0) No Ways Identified Moderate (1) 1 - 3 Ways Identified High (2) 4+ Ways Identified
6. Level of passion or extent to which the proposed new venture meets the founder(s)/NVT personal goals and aspirations	Low (0) Weak Moderate (1) Moderate High (2) Strong
7. Founder(s)/NVT has identified potential mentors and/or advisory board members to help guide, launch and grow the new venture.	Low (0) No mentors/ advisors identified Moderate (1) A few mentors/ advisors identified High (2) Numerous mentors/ advisors identified
8. Founder(s)/NVT has the time to put into launching a new venture.	Low (0) Has less than 5 hours per week to dedicate. Moderate (1) Can dedicate between 5 -20 hours per week. High (2) Can dedicate 20+ hours per week.
9. Does the new venture team agree on the overall vision for the new venture?	Low (0) No they don’t agree or there is no vision determined. Moderate (1) Mostly they do agree. High (2) Yes, everyone agrees.
10. How well does the founder(s)/NVT relate to the target market/potential customer?	Low (0) Does not relate to target market/ potential customer. Moderate (1) Somewhat relatable to target market/ potential customer. High (2) Easily relates to target market/ potential customer.

Analysis

Describe the strengths of your founding members in relation to the business, what does each person bring to the table in terms of knowledge, experience, expertise, capital, etc.
What groups, clubs, or associations can you join (Chamber of Commerce, Young Professional Association, and other associations in your industry, etc.)

Part 5: Financial Issues

Score: 0/20

Criteria	Potential
1. How much capital will it take to start-up your new venture?	Low (0) A lot, we will need to tap into sources for capital. Moderate (1) Moderate amount of capital is needed. High (2) Very little, not more than we have easy access to.
2. Number of revenue streams (ways in which the company makes money)	Low (0) One Moderate (1) Two to Three High (2) Four or More
3. How long will it take the firm to break even?	Low (0) More than two years. Moderate (1) One to two years. High (2) Less than one year.
4. Would you say that the financial performance of similar businesses is	Low (0) Weak Moderate (1) Modest High (2) Strong
5. How many ways have been identified to initially fund the new venture?	Low (0) None Moderate (1) 1 - 2 High (2) 3+
6. How desirable is this industry to external investors?	Low (0) Undesirable Moderate (1) Somewhat Desirable High (2) Very Desirable
7. Can major cost categories be identified?	Low (0) No Moderate (1) Maybe High (2) Yes
8. Extent to which the founder(s) have established relationships with banks and/or other lenders (hard money lenders, private lenders, etc.)	Low (0) No Relationships Moderate (1) A Few Established High (2) Numerous Relationships Established
9. Coming up with a pro forma budget will be	Low (0) Difficult or Impossible Moderate (1) Difficult but Possible High (2) Possible and Easy
10. How easy/difficult is it to price your product/service?	Low (0) Difficult Moderate (1) Will take some thought. High (2) Very Easy
11. B1. Have you identified ways to ramp up business in the event of slowdowns and seasonal slumps?	Low (0) No Moderate (1) Yes, 1 - 2 ways. High (2) Yes, 3+ ways.
12. B2: How many additional business models can be incorporated to increase the revenue streams?	Low (0) 0 - 1 Moderate (1) 2 - 3 High (2) 4 - 5
13. B3. How would you describe the credit worthiness of the founder(s)? (You should just consider this individually, it does not need to be answered here.)	Low (0) No credit or low credit score. Moderate (1) Established credit but credit score needs work. High (2) Established credit with high credit score.

Analysis

In the area below, briefly describe your revenue drivers (ways you will earn money), think of as many as possible, even if you won’t do them all at startup.

Feasibility Analysis - Overall Potential

Overall Potential

Each part has multiple items. Scores range from 0 to +20 for each part. The overall 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.

Part	Overall Potential of the Business Idea Based on Each Part	Suggestions for Improving the Potential
Part 1: Strength of Business Idea	Low potential Moderate potential High potential
Part 2: Industry-Related Issues	Low potential Moderate potential High potential
Part 3: Target Market and Customer-Related Issues	Low potential Moderate potential High potential
Part 4: Founder- (or Founders-) Related Issues	Low potential Moderate potential High potential
Part 5: Financial Issues	Low potential Moderate potential High potential
Overall Assessment	Low potential Moderate potential High potential	Summary—briefly summarize your justification for your overall assessment: