To evaluate the business idea, you could try using a model MAR (Market, Advantages, Return) which was developed by Ryan as follows:
Market
• Is there a need for a large enough on goods / services will you provide this? Are you sure that this requirement is in place where you will sell it?
• How does market structure? Is the market highly competitive or market monopolized by a particular company or some specific company? Knowledge of market structure is necessary to build your strategy to get into this market.
• How will you put a price on the product / service? Do you have a high enough profit margin? Is the need for product / service is high enough so that it can accept the price that you have planned?
• How large is the market? Is it big enough for you go? Is the market growing or shrinking? Look for markets that will grow.
• Is the market ready for your product? You could have a good product, but if konsumernya not ready or the infrastructure is not available, you can not realize your brilliant idea into a successful business today.
Advantages
• What is the cost to produce goods / services? If you can find a way to produce cheaper than competitors, you can benefit from.
• What does it cost to start this business? Is there a major competitor in this segment? Are there regulatory, patent, or a very large capital is needed so that it can be a stumbling block?
• Do you have IPR (Intellectual Property) that can benefit you?
• Who will be there in your team? How many people are needed to start this business, what is their role? If you can convince people who are very experienced sitting as a commissioner, or in top management, then you will have excess. Remember, your business idea is real only when your team can make it happen.
• How will you sell goods / service? Are you going to sell directly to consumers via the Internet? Or to a distributor? Or to retailer If you can build a unique way to sell, this could be your strengths.
Return
• What is the gross and net profit projections?
• How long will it take until you cash flow positive? How long will it take until you can reach breakeven? These numbers are very important to know and is an important part in your business plan.
• How much investment is needed to start this business? The large amount of funds needed will determine where you need to raise funds. Try to keep your business you can start with the least possible cost. If possible start is with your personal funds. If you suda can generate income, you will more easily raise funds without releasing too much ownership.
• How is your Exit Strategy? What will you plan to sell your company or will enter into the stock market? How can your investors will get their money back? Is the sale of shares? Or from dividends paid each quarter?
• How is ROI (Return On Investment) you project? Does this figure would be quite attractive to your investors? How long the repayment period?
Market
• Is there a need for a large enough on goods / services will you provide this? Are you sure that this requirement is in place where you will sell it?
• How does market structure? Is the market highly competitive or market monopolized by a particular company or some specific company? Knowledge of market structure is necessary to build your strategy to get into this market.
• How will you put a price on the product / service? Do you have a high enough profit margin? Is the need for product / service is high enough so that it can accept the price that you have planned?
• How large is the market? Is it big enough for you go? Is the market growing or shrinking? Look for markets that will grow.
• Is the market ready for your product? You could have a good product, but if konsumernya not ready or the infrastructure is not available, you can not realize your brilliant idea into a successful business today.
Advantages
• What is the cost to produce goods / services? If you can find a way to produce cheaper than competitors, you can benefit from.
• What does it cost to start this business? Is there a major competitor in this segment? Are there regulatory, patent, or a very large capital is needed so that it can be a stumbling block?
• Do you have IPR (Intellectual Property) that can benefit you?
• Who will be there in your team? How many people are needed to start this business, what is their role? If you can convince people who are very experienced sitting as a commissioner, or in top management, then you will have excess. Remember, your business idea is real only when your team can make it happen.
• How will you sell goods / service? Are you going to sell directly to consumers via the Internet? Or to a distributor? Or to retailer If you can build a unique way to sell, this could be your strengths.
Return
• What is the gross and net profit projections?
• How long will it take until you cash flow positive? How long will it take until you can reach breakeven? These numbers are very important to know and is an important part in your business plan.
• How much investment is needed to start this business? The large amount of funds needed will determine where you need to raise funds. Try to keep your business you can start with the least possible cost. If possible start is with your personal funds. If you suda can generate income, you will more easily raise funds without releasing too much ownership.
• How is your Exit Strategy? What will you plan to sell your company or will enter into the stock market? How can your investors will get their money back? Is the sale of shares? Or from dividends paid each quarter?
• How is ROI (Return On Investment) you project? Does this figure would be quite attractive to your investors? How long the repayment period?
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