A. Identify And State The Purpose Of The Business Opportunity B. Evaluating the Opportunity 1. Define the causes that have resulted in the opportunity 2. Define the dimensions of the opportunity with reference to a. target population b. geographic market c. time frame 3. Define a specific need(s) 4. Define how the product or services will fulfill the identified need(s) 5. Identify how we as an organization can be adversely affected. Identify solutions or preventive actions to minimize risk 6. Identify the size of the potential market and the numbers to served 7. Identify why we should select this opportunity over others C. Developing the Business Concept 8. Define the major tasks and timeline for implementation 9. Define the means to identify the customer/client and how he/she will be persuaded to use our services. D. Assessing Required Resources 10. Define the resources that are absolutely critical to this opportunity. Be specific to personal, equipment, supplies, and space requirements. 11. Develop your pro forma statements and return on investment analysis a. Cash Flow b. Working Capital Requirements c. Break-even d. Profitability e. Internal Rate of Return/Net Present Value Analysis f. Exit Strategy 12. Identify the downside risks associated with insufficient resources E. Acquiring Needed Resources 13. Identify alternative sources of needed resources 14. Identify the needs of those who can provide for additional resources 15. Identify the deals that can be structured to achieve our desired ends 16. Develop an action plan will result in successful acquisition of these resources F. Managing 17. Identify key internal and external elements that must be managed 18. Identify the appropriate organizational structure/procedures for managing the opportunity
National Enterprise Alliance, Inc.
CRITERIA FOR NEW VENTURE DEVELOPMENT
CRITERIA YES/NO/DATA 1. Consistency with the organization's mission, vision, goals a. Board Acceptance b. Community Acceptance c. Staff Acceptance
2. Evidence of market need a. Total market b. Expected market share c. Time period to market share goal
3. Employs strengths of the organization a. Experience b. Ability to leverage its position or influence c. Strong defined image d. Market dominance
4. Availability and capacity of management resources
5. Adequate return on investment a. Estimated Gross Revenues b. Expenses c. Investment d. Break-even volume e. Payback Period f. Acceptable Exit Strategy