Entrepreneur

First Screen

Feasibility Analysis Report[footnoteRef:1] [1: From “Preparing Effective Business Plans” by Bruce R. Barringer]

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

First Screen – Feasibility Analysis Report Fall 2021-2022

Page 11 of 12

Copyright © 2019 Pearson Education, Inc. Publishing as Prentice Hall

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

3. Extent to which the idea “adds value” for its buyer or end user

Not timely Moderately timely Very timely

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

Substantial changes required

Moderate changes required

Small to no changes required

or behaviors

Explanation/Justification of Results of Part 1

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

4. Importance of industry’s products and/or services to customers

5. Industry operating

Little or no growth Moderate growth Strong growth

“Ambivalent” “Would like to have” “Must have”

Low Moderate High

margins

Explanation/Justification of Results of Part 2

Part 3: Target Market and Customer-Related Issues

Insert here a definition of your Target Market:

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	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	Low	Moderate	High

target market

Explanation/Justification of Results of Part 3

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

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

1. Founder or founders experience in the industry

2. Founder or founders skills as they relate to the proposed new venture’s product or service

3. Extent of the founder or founders professional and

social networks in the relevant industry

4. Extent to which the proposed new venture meets the founder or founders personal goals and aspirations

No experience Moderate experience Experienced

No skills Moderate skills Skilled

None Moderate Extensive

Weak Moderate Strong

5. Likelihood that a team can be put together to launch and grow the new

Unlikely Moderately likely Very likely

venture

Explanation/Justification of Results of Part 4

Part 5: Financial Issues

1. Initial capital investment

2. Number of revenue drivers (ways in which the company makes money)

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

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

5. Ability to fund initial product (or service) development and/or initial startup expenses from personal funds or via

Weak Modest Strong

Low Moderate High

bootstrapping

Explanation/Justification of Results of Part 5

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, moderate, or low potential for each part. The ranking is a judgment call.

	Score (-5 to +5)	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

Summary —briefly summarize your justification for your overall assessment: