Part 1: Strength of Business Idea

Appendix 2.1 First Screen

For each item, circle the most appropriate answer and make note of the (-1), (0), or (+1) score.

Low Potential Moderate Potential High Potential (-1) (0) (+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 Not very satisfied customer is satisfied satisfied or ambivalent by competing products that are already available 5. Degree to which the Substantial Moderate changes Small to no idea requires changes required changes required customers to change required their basic practices or behaviors

Part 2: Industry-Related Issues Low Potential Moderate Potential High Potential (-1) (0) (+1) 1. Number of Many Few None competitors 2. Stage of industry life Maturity phase Growth phase Emergence phase cycle or decline phase 3. Growth rate of Little or no Moderate growth Strong growth industry growth 4. Importance of “Ambivalent” “Would like to “Must have” industry’s products have”

2-1 and/or services to customers 5. Industry operating Low Moderate High margins

Part 3: Target Market and Customer-Related Issues Low Potential Moderate Potential High Potential (-1) (0) (+1) 1. Identification of Difficult to May be able to Identified target market for the identify identify proposed new venture 2. Ability to create Unable to create May or may not be Can create “barriers to entry” for able 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

Part 4: Founder- (or Founders-) Related Issues Low Potential Moderate Potential High Potential (-1) (0) (+1) 1. Founder or founders No experience Moderate Experienced experience in the experience 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

2-2 together to launch and grow the new venture

Part 5: Financial Issues Low Potential Moderate Potential High Potential (-1) (0) (+1) 1. Initial capital High Moderate Low investment 2. Number of revenue One Two to three More than three drivers (ways in which the company 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

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 Idea potential Low potential Part 2: High potential Industry-Related Moderate Issues potential Low potential Part 3: High potential

2-3 Target Market and Moderate Customer-Related potential Issues Low potential

Part 4: High potential Founder- (or Moderate Founders-) Related potential Issues Low potential

Part 5: High potential Financial Issues Moderate potential Low potential Overall Assessment High potential Moderate potential Low potential

Summary—briefly summarize your justification for your overall assessment: