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Business Idea Feasibility Analysis Guide

This document outlines a feasibility analysis for a new business idea. It evaluates the idea across 5 parts: strength of the business idea, industry-related issues, target market and customer issues, founder issues, and financial issues. Each part contains criteria that are rated on a scale from low to high potential. An overall potential score is then calculated based on the ratings in each part, along with an overall potential assessment of the business idea and suggestions for improving its potential.

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Junaid Rashid
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117 views4 pages

Business Idea Feasibility Analysis Guide

This document outlines a feasibility analysis for a new business idea. It evaluates the idea across 5 parts: strength of the business idea, industry-related issues, target market and customer issues, founder issues, and financial issues. Each part contains criteria that are rated on a scale from low to high potential. An overall potential score is then calculated based on the ratings in each part, along with an overall potential assessment of the business idea and suggestions for improving its potential.

Uploaded by

Junaid Rashid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Feasibility Analysis

Part 1: Strength of the Business Idea


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

1. Extent to which the idea:


 Takes advantage of
an environmental trend
 Solves a problem
 Addresses an unfilled
Gap in the marketplace

2. Timeliness of entry to market

3. Extent to which the idea “adds value”


for its buyer or end user

4. Extent to which the customer is


satisfied by competing products
that are already available

5. Degree to which the idea requires


customers to change their basic
practices or behaviors

Part 2: Industry-Related Issues


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

1. Number of competitors

2. Stage of industry lifecycle

3. Growth rate of industry

4. Importance of industry’s
Products and/or services
To customers

5. Industry operating margins


Part 3: Target Market and Customer-Related Issues
Low Moderate High
Potential (-1) Potential (0) Potential (-1)

1. Identification of target market for the


Proposed new venture

2. Ability to create “barriers to entry”


For potential competitors

3. Purchasing power of customers

4. Ease of making customers aware


of the new product or service

5. Grown potential of target market

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


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

[Link]’s or founders experience


in the industry

2. Founder’s or founder’s skills as


they relate to the proposed new
venture’s product or service

3. Extent of the founder’s or


founder’s professional and social
networks in the relevant industry

4. Extent to which the proposed


new venture meets the founder’s
or founder’s personal goals and
aspirations

5. Likelihood that a team can be


put together to launch and grow
the new venture
Part 5: Financial Issues
Low Moderate High
Potential (-1) Potential (0) Potential (-1)

1. Initial capital investment

2. Number of revenue drivers


(ways in which the company
makes money)

3. Time to break even

4. Financial performance of
similar business

5. Ability to fund initial product


(or service) development and/
or initial start-up expenses from
personal funds or via
bootstrapping

Overall Potential
Score (-5 to +1) Overall Potential of the Business Suggestions for
Idea Based on Each Part Improving the Potential

Part 1:
Strength of Business Idea

Part 2:
Industry-Related Issues

Part 3:
Target Market and
Customer-Related Issues

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

Part 5:
Financial Issues

Overall Assessment

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