Week 4 (Chapter 3) Flashcards
Feasibility analysis
The process of determining if a business idea is viable. If a business idea falls short on one or more of the four components of feasibility analysis, it should be dropped or rethought.
Primary research
Research that is collected by the persons completing the analysis
Secondary research
Probes data that is already collected
Pivot
Willing to adapt your idea
Landing page
A single web page that typically provides direct sales copy
Confirmation bias
Selectively search for find evidence that validates the idea. But what would people say if you asked them to pre-order, play in advance, invest…
Persist
Improve your concept
Industry Attractiveness
It should be yours, early in their life cycle, trending positively fragmented, growing and has high margins
Market attractiveness
The challenge is to find a market that is large enough for the proposed business yet small enough to avoid attracting larger competitors (until the start-up us successful).
Target market
The limited portion of the industry it plans to go after
Industry
A group of firms producing a similar product or service
Organizational feasibility, SELF assessed based on:
- Management (team) prowess
- Resource sufficiency
Management (team) prowess
Experience, passion, knowledge and expertise, market knowledge, networks (social and professional). Often referred to as:
- Who you are
- What you know
- Who you know
Resource sufficiency
What you need in order to move forward (What do you have? What can you get?)
Financial feasibility
- Start up cash and investment requirements
- Performance of similar businesses
- Financial attractiveness of the new venture
