Page 13 - Growth and Contingency Planning Toolkit

GROWTH & CONTINGENCY PLANNING GROWTH & CONTINGENCY PLANNING

Growth & Contingency Evaluation Tool
Moving from Idea to Opportunity

RATING SCALE PRODUCT/SERVICE/VENTURE
Weak Neutral Strong
1 2 3 3 5
Customer Need for Product or Service
unproven................................................................................proven
Stage of Development
early........................................................................................mature
R Ease of Implementation
significant effort...............................................................little effort
E Product/Service Life Cycle
A short.............................................................................................long
L Purchase Frequency
non-recurring.....................................................................recurring
Defined Market and Customer
new market, new customer........defined market, customer P.O.
Sales Cycle
greater than 18 months...................................less than 3 months
Customer Relationship 04 RESOURCES
weak.........................................................................................strong
Distribution Channel
new channel...........................................................existing channel
Competition
commodity market........................strong competitive advantage
Required Competencies - knowledge, skills, and abilities
W new.........................................................................................existing
I Required Assets - physical equipment, tools and facilities
N new.........................................................................................existing
Reliance on Third Parties
significant reliance..........................................................no reliance
Barriers to Competitor’s Entry
low investment.......................................................high investment
Human Resources - Who will execute?
must recruit................................................no recruitment needed
Return on Investment - Year One
10% or less................................................................25% or greater
Customer Payment
60 days or greater.......................................................pre-payment
W Contribution Margin
25% or less................................................................75% or greater
O Product or Service Liability Risk
R high risk...................................................................................no risk
T Required Funding
H externally funded.................................................internally funded
Company-wide Support
little support.......................................................significant support
Market Value, Exit Potential
low................................................................................................high
A
L
I
G
N
M
E
N
T
Evaluation Total
A 112 - 140 Do it. Probability
B 84 - 111 Refine it. Rating
C 56-83 Fix it.
D <55 Drop it.
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