Business Concept Feasibility Assessment
Identify strengths and weaknesses in your business concept as compared to a model business.
This assessment identifies the major criteria that can make or break the success of a business. By evaluating your business concept against these criteria, you can determine the level of risk you might be taking in starting that business. The criteria can also be used to develop benchmarks for improvement in the product/service, the market, and the financial aspects of the business.
Step 1: Review the Business Concept Feasibility Assessment – Criteria Descriptions. Review the criteria and descriptions on pages 3 through 5 of this document. For each criterion, choose the description that most closely matches your situation. Mark that description’s number (1 through 5) on the Scoring Page (page 2 of this document). If you do not know some of the answers right now, do not rate those criteria. As you go through this program and learn more, you will continue to rate your business against these criteria.
Step 2: Total your score.
On the Scoring Page, total the points for your business concept on the 20 criteria. NOTE: The model, or perfect, business would score a “5” on every criterion, for a total of 100 points.
Step 3: Evaluate your business.
In a comparison of a business concept against the model business, no score guarantees a feasible business. Generally, for a business concept to be feasible it must achieve at least one-half of the possible points overall and at least one-half of the possible points in any of the three feasibility areas—product or service, market, and financial. A score of less than 3 for any individual criterion indicates a weakness in the business concept, which requires further consideration.
Step 4: Identify one or two criteria that you rated low.
Consider ways you can improve these scores as you go through the program. Do you need more information, a unique marketing strategy, or creative solutions? Most scores can be improved over time. List several options that could raise the scores of the low rated criteria you identified.
Business Concept Feasibility Assessment – Scoring Page
For help with rating, see the criteria explanations on the following pages.
|PRODUCT OR SERVICE FEASIBILITY |1 |2 |3 |4 |5 | |Customers perceive a need for product/service. |❑ |❑ |❑ |❑ |❑ | |Product/Service is ready to sell. |❑ |❑ |❑ |❑ |❑ | |Product/Service has unlimited life. |❑ |❑ |❑ |❑ |❑ | |Product/Service is unique and protectable. |❑ |❑ |❑ |❑ |❑ | |Product/Service is not regulated by the government. |❑ |❑ |❑ |❑ |❑ | |Product/Service line has expansion potential. |❑ |❑ |❑ |❑ |❑ | |Product/Service has no liability risk. |❑ |❑ |❑ |❑ |❑ | | | | | | | | |MARKET FEASIBILITY |1 |2 |3 |4 |5 | |Market can be recognized and measured. |❑ |❑ |❑ |❑ |❑ | |Existing competition has identifiable weaknesses. |❑ |❑ |❑...