First Screen – Feasibility Analysis Report Spring 2020

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 Weak Moderate Strong

idea:
• Takes advantage of
an environmental
trend
• Solves a problem
• Addresses an
unfilled gap in the
marketplace

2. Timeliness of entry to Not timely moderately timely Very timely

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

4. Extent to which the Very satisfied Moderately satisfied Not very satisfied
customer is satisfied or ambivalent
by competing
products that are
already available

5. Degree to which the Substantial changes Moderate changes Small to no changes

idea requires required required required
customers to change
their basic practices
or behaviors

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

First Screen – Feasibility Analysis Report Spring 2020

Explanation of Results of Part 1

As per the analysis, we see that the score of the part one is +3 which means there is a high potential for
the products in the market.
First Screen – Feasibility Analysis Report Spring 2020

Part 2: Industry-Related Issues

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

1. Number of Many Few None

competitors

2. Stage of industry life Maturity phase or Growth phase Emergence phase

cycle decline phase
3. Growth rate of Little or no growth Moderate growth Strong growth
industry
4. Importance of “Ambivalent” “Would like to have” “Must have”
industry’s products
and/or services to
customers
5. Industry operating Low Moderate High
margins

Explanation of Results of Part 2

First Screen – Feasibility Analysis Report Spring 2020

Part 3: Target Market and Customer-Related Issues

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

1. Identification of Difficult to identify May be able to identify Identified

target market for the
proposed new venture
2. Ability to create Unable to create May or may not be able Can create
“barriers to entry” for to create
potential competitors

3. Purchasing power of Low Moderate High

customers
4. Ease of making Low Moderate High
customers aware of
the new product or
service
5. Growth potential of Low Moderate High
target market
First Screen – Feasibility Analysis Report Spring 2020

Explanation of Results of Part 3

First Screen – Feasibility Analysis Report Spring 2020

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

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

1. Founder or founders No experience Moderate experience Experienced

experience in the
industry
2. Founder or founders No skills Moderate skills Skilled
skills as they relate to
the proposed new
venture’s product or
service
3. Extent of the founder None Moderate Extensive
or founders
professional and
social networks in the
relevant industry
4. Extent to which the Weak Moderate Strong
proposed new venture
meets the founder or
founders personal
goals and aspirations

5. Likelihood that a Unlikely Moderately likely Very likely

team can be put
together to launch
and grow the new
venture

Explanation of Results of Part 4

First Screen – Feasibility Analysis Report Spring 2020

Part 5: Financial Issues

First Screen – Feasibility Analysis Report Spring 2020

1. Initial capital Low Potential (-1) Moderate Potential (0) High Potential (+1)
investment
High Moderate Low
2. Number of revenue
drivers (ways in
which the company One Two to three More than three
makes money)
3. Time to break even More than two One to two years Less than one year
years
4. Financial Weak Modest Strong
performance of
similar businesses
5. Ability to fund initial Low Moderate High
product (or service)
development and/or
initial startup
expenses from
personal funds or via
bootstrapping
First Screen – Feasibility Analysis Report Spring 2020

Explanation of Results of Part 5

First Screen – Feasibility Analysis Report Spring 2020

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

Score Overall Potential of the Suggestions for

(-5 to +1) Business Idea Based on Improving the
Each Part Potential

Part 1: High potential

Strength of Business Moderate potential
Idea Low potential

Part 2: High potential

Industry-Related Moderate potential
Issues Low potential

Part 3: High potential

Target Market and Moderate potential
Customer-Related Low potential
Issues

Part 4: Founder- High potential

(or Founders-) Moderate potential
Related Issues Low potential

Part 5: High potential

Financial Issues Moderate potential
Low potential

Overall Assessment High potential

Moderate potential
Low potential
First Screen – Feasibility Analysis Report Spring 2020

Summary—briefly summarize your justification for your overall assessment: