A. Human Capital:Here you want to list assets that YOU will bring to the company:
- Education, Degrees, Certifications.
- Special Skills and Abilities.
- Dedication and Enthusiasm.
B. Social Capital:
C. Financial Capital:
- Minimum Start Up Capital Required: $_____________*
- Start-Up Funding for 1, 3, 6, 9, 0r 12 months: _________*
- Current Employment that can sustain you pending growth--Yes or No
- Available Cash on hand that you can Risk: $___________*
- Is there a sufficient financial reward to make the venture worthwhile?*
* If you are unsure at this point, put TBD--To Be Determined. Do not be glib about this number; enter some reasonable estimate for now. These numbers will be clarified later in your Business Plan.
D. Competitive Advantages:
- Customers Exist and Are Either Not Served or Are Under-Served.
- Better Mousetrap: Product or Service Proposed offers more value than existing Competitors.
- Better Geographical Location for Expected Growth In Demand for Product or Services .
- Better Ability to Deliver Products/Services.
- Serious negative qualities of Competitor(s).
- Exclusivity of Product or Service.
E. Advantages of the Marketing Plan:
- Psychographic Marketing Advantages.
- Better Use of Technology (Internet, Online Marketing or e-Retail).
- Full-featured planning for all media from Print through Social Media.
F. Rank the Factors:
1. Rank them in terms of importance in helping you successfully start your new business. Which of the Strengths helps you the most, then second and so on.
2. Of the Strengths you have now ranked, score your self from 1-10. Giving yourself a score of 10 means that your strength is Extremely Strong; 5 means you need more help or training; and a 1 would mean that you have some Strength here but it is fairly minimal or non-existent.
I. How do your potential customers handle their Needs and Wants now and get along without your proposed business? In other words, is there a Demand for your Product/Service? Has anyone tried this and failed?
--Note: This may be hard to measure. Your instincts will kick in here. Do not rule something out solely because another person tried and failed. Can you figure out where their failure point was?
II. If there is a Demand for your Product/Service, why aren’t your Competitor(s) acting to meet this Demand? Why would they not to undertake these actions and lose business?
--Note: Sometimes the answer to this question that for your Competitor(s) may be the only game in town without much reason to change.
III. Can this proposed business produce a sufficient financial reward for you based upon the time you will invest?
--Note: Determining what a sufficient financial reward is for you is entirely subjective and no one can determine that for you. Your intangible, internal rewards may outweigh purely financial rewards. You may want to do some calculations to give you an idea of the desirability of pursuing this new business proposal.
For Example: A 40-hr. per week job requires 2,080 hours per year. If you are making $45,000.00 per year, you have already agreed to market yourself at $21.64 per hour before taxes. A 30% increase in your hourly wage would suggest that you make $27.82/hour in this new business venture. While you may not make this from Day 1, does this seem like a reasonable estimate or likelihood to you? This would be an Annual Gross of $57,865.00 less taxes and less costs. What is your estimate of Additional Income?
--Note: If this business is seen as a stepping stone or “Spin-Up” Business which intend to grow and expand, you may justifiably be willing to work for less now in order to build for a greater future. Think long-term has significant rewards.