The following questions are based on the work of Dr. Brent Mainprize and he has kindly agreed to allow us to refer to it. Our answers are for our idea are preceded by a dot. How about you take your own idea and walk it through?
3) What level of customers receptiveness to the new product do you expect?
- For people who have had the idea explained to them, some have a positive reaction and want to try the product and some do not see the need for it, because they are satisfied with the existing alternative. Conclusion: We need to do a test market. Score: Medium
4) Is the industry attractive? Attractive industries for new ventures tend to have the following characteristics
- young and growing
- not capital intensive
- success not dependent on large advertising budgets
- market share not concentrated in a few companies
- average company size is small
- Industry of hand held mobile accessories is 1) young and growing 2) not capital intensive, as manufacturing will be contracted out 3) advertising plan essentially “viral” 4) lots of entrants 5) average small size. Score: High
5) Does the new venture’s mission fit with entrepreneurs personal aspirations and willingness to take risks? Mission is defined as “the purpose of the company”.
- The purpose of the company is to make text messaging more efficient, easier, and more accurate. Score: High
6) Is the entrepreneurial team well connected up, down and across the value chain?
- No. This is a totally new industry to both of us. Score: Low
7) Is gross margin sufficient given the typical industry cost structure?
- No knowledge of gross margin, so determining this is a key aspect in the preparation of the business plan. Score: Unknown