Business Potential Analysis Framework
This framework evaluates a business opportunity based on several key factors, assigning scores and calculating overall potential. Below is the table format with specific formulas for analysis.
| Factor | Description | Weight (%) | Score (1-10) | Weighted Score (Formula) |
|---|---|---|---|---|
| Market Size | Total addressable market (TAM) for the product/service. | |||
| Growth Rate | Industry or market annual growth rate (CAGR). | |||
| Competitive Advantage | Uniqueness of product/service and barriers to entry for competitors. | |||
| Customer Demand | Strength and consistency of customer need for the product/service. | |||
| Revenue Potential | Expected profitability and revenue growth over time. | |||
| Implementation Feasibility | Ease of implementation, including resources, technology, and workforce availability. | |||
| Regulatory/Compliance Risk | Level of regulatory hurdles or compliance risks associated with the opportunity (inverse scoring). | |||
| Technology Synergy | Fit with existing technological capabilities or strategic goals. |
Overall Potential Score Calculation
- : Weight for factor , expressed as a percentage.
- : Score for factor , rated on a scale of 1 (low) to 10 (high).
- : Maximum possible score = 100.
Example with Hypothetical Weights and Scores
| Factor | Weight (%) | Score (1-10) | Weighted Score |
|---|---|---|---|
| Market Size | 25% | 8 | |
| Growth Rate | 15% | 9 | |
| Competitive Advantage | 20% | 7 | |
| Customer Demand | 10% | 6 | |
| Revenue Potential | 10% | 8 | |
| Implementation Feasibility | 10% | 9 | |
| Regulatory/Compliance Risk | 5% | 6 | |
| Technology Synergy | 5% | 8 |
Total Weighted Score:
Interpreting the Score
| Score Range | Business Potential |
|---|---|
| 90-100 | Very High Potential |
| 75-89 | High Potential |
| 50-74 | Moderate Potential |
| <50 | Low Potential |