Reference no: EM131896198

Details of Preliminary Assessment and Approval

Type of business idea to be considered:

It is preferred that the business idea you select should be sufficient to make an economic impact.

For example, the idea should have enough potential to eventually provide permanent employment for the entrepreneur and possibly additional employees.

Ideas that would not provide permanent jobs and/or only part-time income will be considered if it's a business you are actually considering starting. There are no other conditions as to the type or scope of your business idea except ideas that have questionable morality will be scrutinized as to appropriateness.

See notes below for more guidance.

Note: If you have been considering a business idea, this provides an opportunity to start developing the idea into a viable business.

Note: Non-profit (i.e., social entrepreneurship) ideas are acceptable. If you are selecting this type of idea, you can refer to this book "Nonprofit Kit for Dummies" (latest Ed). The book will provide insight into the unique structure, financing, etc. of nonprofits.

Note: Under special circumstances the purchase of a franchise opportunity can be considered for this project.

Note: If you are currently an entrepreneur, you may submit ideas to expand or critically evaluate your current business.

Preliminary Assessment of the Idea should include the following:

The preliminary assessment of the idea will follow the following format:

Sections:

Provide a brief description of your proposed business (100 words or less). Make sure that it's very clear what your business is and how it works. Don't use industry specific words or concepts without defining them. In other words, make the description clear to anyone who reads it.

Provided an initial Business Model Canvas as described in the Business Model Generation. Note: Start by viewing the Business Model Presentation. You may use the template for the initial model. Just fill in the nine sections of the template

Provide a brief justification of the following:

Overt benefit - (What customer problem(s) are being solved?)

Real reason to believe - (What are your credentials for being able to solve the customer's problem(s)?)

Dramatic difference - (What can you do for the customer that no other firm can?)

Note: These three items make up the Value Propositions for the business idea.

Answer each of the following questions thoroughly, providing as much detail as you can. You will need specific numbers for the number of customers who fit your customer profile. The United States Census Bureau is a great place to start.

Is there a demand for the product or service? 1

Who are the customers (i.e. customer profile)? (Describe them using demographics, geographics, or psychographics.) 2

Is there competition? Who? Where are they located? What are their strengths and weaknesses? 3

Why would a customer purchase your product or service? (What gives it more value than the competition?) 4

Notes:

General - The following will be used to evaluate and determine the final approval of your business idea.

This is not a yes/no answer. You must include the details of your reasoning. Fully explain why there is a demand.

This is one of the most critical questions that you will answer in the development of the business plan. A complete and accurate description of your customer is a "must."

The description should include demographics such as age, income, and gender. In addition, you should include the geographic data concerning the customer. This would include - at a minimum - the number and location of potential customers. The United States Census Bureau will provide much of the demographic and geographic data (Note: the State & County QuickFacts section is a good place to start).

Finally, a psychographic profile should be provided. Psychographics describe why people will use your product/service.

For example, people who are concerned with their health (psychographic) are interested in fitness centers. Another example would be people who need a flexible schedule would most likely be drawn to online classes.

The website Esri Zip Code Lookup gives brief psychographic profiles by zip code.

The local phone book is an excellent source for identifying competitors. Include the strengths and weaknesses of the competition in your discussion.

Fully explain the value in your product or service. Convince me why I should purchase your product/service.

Note: After the idea is approved you will be able to revise and improve your Business Model Canvas. The final version of the Canvas will be included in the Phase 2 submission.