"First Screen" for Preparing Effective Business Plans
First Screen
From “Preparing Effective Business Plans” by Bruce R. Barringer 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) 1. Extent to which the idea: x Takes advantage of an environmental trend x Solves a problem x Addresses an unfilled gap in the marketplace Weak Moderate Potential (0) Moderate High Potential (+1) Strong
2. 3.
Timeliness of entry to Not timely market Extent to which the idea “adds value” for its buyer or end user Extent to which the customer is satisfied by competing products that are already available Degree to which the idea requires customers to change their basic practices or behaviors Low
Moderately timely Medium
Very timely High
4.
Very satisfied
Moderately satisfied
Not very satisfied or ambivalent
5.
Substantial changes required
Moderate changes required
Small to no changes required
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Part 2: Industry-Related Issues Low Potential (-1) 1. 2. 3. 4. Number of competitors Stage of industry life cycle Growth rate of industry Importance of industry’s products and/or services to customers Industry operating margins Many Maturity phase or decline phase Little or no growth “Ambivalent”
Moderate Potential (0) Few Growth phase Moderate growth “Would like to have”
High Potential (+1) None Emergence phase Strong growth “Must have”
5.
Low
Moderate
High
Part 3: Target Market and Customer-Related Issues Low Potential (-1) Moderate Potential (0) 1. Identification of Difficult to identify target market for the proposed new venture Ability to create “barriers to entry” for potential competitors Purchasing power of customers Ease of making customers aware of the new product or service Growth potential of target market Unable to create May be able to identify
High Potential (+1) Identified
2.
May or may not be able
From “Preparing Effective Business Plans” by Bruce R. Barringer 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) 1. Extent to which the idea: x Takes advantage of an environmental trend x Solves a problem x Addresses an unfilled gap in the marketplace Weak Moderate Potential (0) Moderate High Potential (+1) Strong
2. 3.
Timeliness of entry to Not timely market Extent to which the idea “adds value” for its buyer or end user Extent to which the customer is satisfied by competing products that are already available Degree to which the idea requires customers to change their basic practices or behaviors Low
Moderately timely Medium
Very timely High
4.
Very satisfied
Moderately satisfied
Not very satisfied or ambivalent
5.
Substantial changes required
Moderate changes required
Small to no changes required
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Part 2: Industry-Related Issues Low Potential (-1) 1. 2. 3. 4. Number of competitors Stage of industry life cycle Growth rate of industry Importance of industry’s products and/or services to customers Industry operating margins Many Maturity phase or decline phase Little or no growth “Ambivalent”
Moderate Potential (0) Few Growth phase Moderate growth “Would like to have”
High Potential (+1) None Emergence phase Strong growth “Must have”
5.
Low
Moderate
High
Part 3: Target Market and Customer-Related Issues Low Potential (-1) Moderate Potential (0) 1. Identification of Difficult to identify target market for the proposed new venture Ability to create “barriers to entry” for potential competitors Purchasing power of customers Ease of making customers aware of the new product or service Growth potential of target market Unable to create May be able to identify
High Potential (+1) Identified
2.
May or may not be able