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DEVELOPING NEW BUSINESS IDEAS Table 6.5 Typical milestone approach

Milestone Key questions
description

1 Formulation of G Have you established to your satisfaction that a market
basic idea for the opportunity and need exist for the new venture?
new venture
G Have the concept testing and rapid prototyping
2 Completion of exercises validated your business idea?
finished (Completion of the four steps of the idea development
prototype process should represent achievement of this
milestone)
3 Raising outside
funding G What assumptions did you initially make about
processes, labour, equipment, suppliers and raw
4 Executing pilot materials?
operation
G What have you learned from the prototyping process
5 Market testing and what impact does this learning have on subsequent
milestones, on your financial requirements and on
6 Full production launch timings?
start-up
G Has the prototyping process revealed new
7 Sale to first opportunities, either for new products, new uses or new
major account customers?

G Are financial stakeholders attracted by your business
idea?

G Do you need to modify your business idea in the light
of feedback?

G Have initial manufacturing operations challenged any
of the assumptions underpinning your business idea in
relation to materials, processes, personnel, reject rates
and so on?

G Does feedback indicate that you should modify cost
estimates or production methods?

G Why are customers buying the product?
G Why are target customers not buying the product?
G Does the product perform in use as you intended?
G Should you modify marketing strategy and objectives?

G Can you manufacture and deliver in terms of
production rates, costs and quality according to the
assumptions which you revised at pilot operation
stage?

G How does your product compare with those of
competitors in the broad market rather than just
on a test basis?

G Do you need to modify your sales strategy?
G Do you need to revise your assumptions on customer

service levels?

8 Reaction by G Have competitors reacted in the fashion you
competition anticipated?

G What measures are required to counter unforeseen
competitive reaction?