BusinessIdeaAnalysis.docVIP

Business Idea Analysis Is your business idea feasible? A feasibility analysis is an important step in business start-up and development. As an entrepreneur, you can greatly increase your chances of success by analyzing your business concept, your market place, your industry and competition, and your financial and organizational structures. Whether you plan to expand an existing business, acquire an existing business, or start a new business, a feasibility analysis will evaluate your preliminary business idea to see if it is worth pursuing. Use this condensed checklist as a way to begin judging whether your business idea will be successful and profitable. The staff of the SV SBDC is available to work with you through this process as. Identify your Core Competency: a special skill, technology, process, knowledge, expertise, or ability that is unique to your business and done better than your competitors. A core competency may be: Valuable – a large revenue generator Rare – not easily found in other businesses Non-substitutable – it’s cannot be replaced by any of your other capabilities. Costly to imitate – it will be expensive for your competitors to try to duplicate Develop a Concept Test: a process of showing a representation or proto-type of the product or service to prospective customers with the purpose to gauge customer interest, desirability, and purchase intent. Identify a preliminary target market…and Survey at least 25-30 people about their needs and how your product/service provides the benefits they seek. Stop and Think… Based on your findings, you can move forward or back up and reevaluate your idea(s). Consider alternatives to make your product/service more desirable to your potential customers. Conduct Market and Industry Research: Obtain information about the current market by researching trends and analyzing the competition. What is the estimated size of the market for your product/service? What is your projected market share? Is the