7.0{\rtf1\ansi\ansicpg1252\deff0\deflang1044{\fonttbl{\f0\froman\fprq6\fcharset0 Arial;}} {\colortbl ;\red0\green0\blue0;} \viewkind4\uc1\lined\cf1\f0\fs20 \line }  texture1.png9Business Idea FeasibilityIn order for a business idea to be feasible it must work in four basic areas: Technical, Market, Financial, and Human Resource.'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 In order for a business idea to be feasible it must work in four basic areas: Technical, Market, Financial, and Human Resource.\par } Times New Roman/ASZA. Mission, Goals, and ObjectivesThis should establish the general direction of the business and provide a very brief overview. This section should be completed in one page give or take a paragraph.'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 This should establish the general direction of the business and provide a very brief overview. This section should be completed in one page give or take a paragraph.\par } /ASA. General Description of the BusinessThis should be a short description of the business model including the technical, market, and financial elements of the business. One good paragraph should cover this but in some cases in may be longer.'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 This should be a short description of the business model including the technical, market, and financial elements of the business. One good paragraph should cover this but in some cases in may be longer.\par } /ASB. Mission and / or Vision StatementThis should be a brief inspirational statement that will convey the meaning and passion associated with your business idea. It should include the customers, the value, the unique elements of your business proposition.'&33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 This should be a brief inspirational statement that will convey the meaning and passion associated with your business idea. It should include the customers, the value, the unique elements of your business proposition.\par } /ASC. Goals & Objectives/ASB. TECHNICALThis section deals with the value added to the customer. What does your business or your product/service provide for the customer. Filling a need, eliminating a pain, enhancing their physical or mental well being. The other element is how you will provide the product/service. Where will you get it, how will you distribute it, etc.'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 This section deals with the value added to the customer. What does your business or your product/service provide for the customer. Filling a need, eliminating a pain, enhancing their physical or mental well being. The other element is how you will provide the product/service. Where will you get it, how will you distribute it, etc.\par } xTimes New Roman/ASA. Business/Industry Profile/AS1. Background Industry Information/AS2. Current and Future Trends/AS3. Business History and Business 'Fit'/ASuB. The Products/Services/ASk1. Products/Services Description/ASl2. Features/Benefits/ASm3. Life Cycles/Seasonality/ASn4. Products/Services Growth Description/AS5. Location/Distribution/AS6. Price/Quality Relationship/ASD. FINANCIAL/ASA. Financial Assumptions/AS1. Personal financial objectivesBegin with the end in mind and define what your personal financial objective are for your life. What kind of lifestyle do you want to have, how much income do you need, etc.'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 Begin with the end in mind and define what your personal financial objective are for your life. What kind of lifestyle do you want to have, how much income do you need, etc.\par } /AS2. Analyze the cost structure of your businessWhat are the start-up and operating expenses for the business concept. What are the fixed and variable expenses for the business both at start-up and ongoing.'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 What are the start-up and operating expenses for the business concept. What are the fixed and variable expenses for the business both at start-up and ongoing.\par } /AS3. Analyze the projected revenue for the business conceptWhat are the sources of revenue and gross revenue expected from the business.'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 What are the sources of revenue and gross revenue expected from the business.\par } /AS4. Analyze the sources and uses of financial resourcesBased on the kinds of costs and the expected level of expenses anticipated in the business, analyze the debt and equity strategies that would best fit your business concept. Identify sources of both debt and equity and how each might be used in the business.'O33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 Based on the kinds of costs and the expected level of expenses anticipated in the business, analyze the debt and equity strategies that would best fit your business concept. Identify sources of both debt and equity and how each might be used in the business.\par } /ASB. Financial Statements/AS1. Projected Income Statement/AS2. Projected Balance Sheet/AS3. Cash Flow projections/ASC. Additional Financial Statements/AS1. Use of Funds Statement/AS2. Break Even Analysis/AS3. Return on Investment/ASC. MARKETThis section focuses on the customer. Who is the customer, why will they purchase from you, how many are there. The there components of this section will provide an overview of that the market size and potential of the market.'033{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 This section focuses on the customer. Who is the customer, why will they purchase from you, how many are there. The there components of this section will provide an overview of that the market size and potential of the market.\par } /ASzA. Customer AnalysisThis deals specifically with the customer. Who are they and why will they purchase your products and services. The three elements are the psychographic, demographic and goegraphic descriptions of the target customer.'&33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 This deals specifically with the customer. Who are they and why will they purchase your products and services. The three elements are the psychographic, demographic and goegraphic descriptions of the target customer.\par } /AS1. PsychographicsThis deals with the motivation to purchase. What are the lifestyles and buying behaviors characteristic of you target customers. This is the most important element in the description of the customer, it is also the most difficult to measure and understand. Demographic characteristics are used as a substitute for psychographics because they are easier to measure and understand, however, the psychographics are the prime movers for customer motivation.'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 This deals with the motivation to purchase. What are the lifestyles and buying behaviors characteristic of you target customers. This is the most important element in the description of the customer, it is also the most difficult to measure and understand. Demographic characteristics are used as a substitute for psychographics because they are easier to measure and understand, however, the psychographics are the prime movers for customer motivation.\par } /AS2. DemographicsDemographics are easily measured characteristics of customers such as age, income, education, marital status, etc. These are used as a substitute or surrogate for psychographics because they are often related and much easier to measure.'933{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 Demographics are easily measured characteristics of customers such as age, income, education, marital status, etc. These are used as a substitute or surrogate for psychographics because they are often related and much easier to measure.\par } /AS3. GeographicsThis section deals with the geographic dispersment of your target customer base. It may be small, such as a city or county. It may regional, national,or international in scope. This will determine the size of your focus for advertising and promotion as well as the necessary distribution channels.'x33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 This section deals with the geographic dispersment of your target customer base. It may be small, such as a city or county. It may regional, national,or international in scope. This will determine the size of your focus for advertising and promotion as well as the necessary distribution channels.\par } /AS{B. Competitive AnalysisThis section examines the relationship of your business with competing companies. It should focus on direct competitors where possible but may include indirect competitors as well.'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 This section examines the relationship of your business with competing companies. It should focus on direct competitors where possible but may include indirect competitors as well.\par } /AS1. Competitive grid analysisThis places your business concept (product/service) along with your competitors on a 2X2 grid. The grid will be defined by two critical characteristics of businesses in your industry. The critical elements may include but not limited to the quality of performance, longevity, customization, risk, return, prestige, etc. Price should not be used as a critical element if at all possible. More than one grid may be used. The purpose of this analysis is to find niches or windows of opportunity where your business can grow without competition.'n33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 This places your business concept (product/service) along with your competitors on a 2X2 grid. The grid will be defined by two critical characteristics of businesses in your industry. The critical elements may include but not limited to the quality of performance, longevity, customization, risk, return, prestige, etc. Price should not be used as a critical element if at all possible. More than one grid may be used. The purpose of this analysis is to find niches or windows of opportunity where your business can grow without competition.\par } /AS2. Life Cycle AnalysisThis analysis examines the stage in the life cycle of the business, industry, or products you are interested in. Knowing the lifecycle will help to determine the competitive nature of the industry, the state of the art (technological status of the products and services in the industry), and the market potential for the business. This may be used to identify opportunities and the types of opportunities available in a particular industry.'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 This analysis examines the stage in the life cycle of the business, industry, or products you are interested in. Knowing the lifecycle will help to determine the competitive nature of the industry, the state of the art (technological status of the products and services in the industry), and the market potential for the business. This may be used to identify opportunities and the types of opportunities available in a particular industry.\par } /AS3. SubstitutionsThis is where an analysis of products or services that may not directly compete with your business idea but can be substituted for the value you add to the client should be identified and evaluated.'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 This is where an analysis of products or services that may not directly compete with your business idea but can be substituted for the value you add to the client should be identified and evaluated.\par } /AS|C. Market Potential/AS}1. Current Trade Area/AS~2. Market Size & Trends/AS3. Market Potential/ASE. HUMAN RESOURCEThis section examines the human element in the business and how to bring the necessary human resources into the company.'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 This section examines the human element in the business and how to bring the necessary human resources into the company.\par } /ASA. OwnershipWho owns the business and in what proportion'x33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 Who owns the business and in what proportion\par } /AS^B. Business structureWhat is the legal form of the business: Sole Proprietor, Partnership, Limited Liability Company (LLC), or Corporation (S Corp. C Corp. non-profit, or not for profit).'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 What is the legal form of the business: Sole Proprietor, Partnership, Limited Liability Company (LLC), or Corporation (S Corp. C Corp. non-profit, or not for profit).\par } /ASC. The Management TeamProvide a description of the roles and responsibilities of individuals on the management team. '33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 Provide a description of the roles and responsibilities of individuals on the management team. \par } /AS`D. PersonnelHow many and what kinds (skills, knowledge, and abilities) of employees will you need'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 How many and what kinds (skills, knowledge, and abilities) of employees will you need\par } /ASaE. Outside Advisors and ServicesA well run business should have an advisory board or board of directors that will provide counsel and advise on business operations and management issues. The advisory board is highly recommended for new businesses and if not a board, a formal mentor. In addition the legal, financial and accounting professional services should be identified.'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 A well run business should have an advisory board or board of directors that will provide counsel and advise on business operations and management issues. The advisory board is highly recommended for new businesses and if not a board, a formal mentor. In addition the legal, financial and accounting professional services should be identified.\par } /ASbF. Risk ManagementIdentify the risks involved in starting the business and methods to reduce or manage those risks. Risks may include financial, technical, market, or human resources. Reduction may take place by sharing the risk (investors), outsource (find suppliers to take the risk of production), start small (limited production or part time operation), start smart (test market), bootstrap, use part time and temporary employees, and use insurance (key man life, casualty, etc.)'33{\fonttbl{\f0\fnil\fcharset0 Arial;}} \viewkind4\uc1\pard\fs20 Identify the risks involved in starting the business and methods to reduce or manage those risks. Risks may include financial, technical, market, or human resources. Reduction may take place by sharing the risk (investors), outsource (find suppliers to take the risk of production), start small (limited production or part time operation), start smart (test market), bootstrap, use part time and temporary employees, and use insurance (key man life, casualty, etc.)\par } /AS