Definition: The process of determining whether the business opportunity demonstrates profit potential.
Objective: The objective of the venture assessment is to determine if the concept offers sufficient profit potential to pursue additional investment of time and money for additional research.
Product: The product of this step is a brief description of the business model.
Business Activities: The research activities common to this step are those necessary to demonstrate the concept will generate a profit and the organization is capable of taking the product to market.
During the conceptual phase at least the following business activities must be completed:
Identify financial, physical, and human resources required for commercialization
Identify the status of intellectual property requirements
Establish a positive profit potential
Business Information: Completion of the conceptual venture assessment usually will result in an estimate of the revenues and costs of product sales, identification of source and use of capital for the development phase.
Assessment:
Do you have experience in launching a business enterprise?
Does this venture appear to have profit potential?
Are you the right person to commercialize the product?
Is your enterprise the right one to commercialize the product?
Have you estimated the resources (capital and service providers) required to launch your venture?
Have you researched the intellectual property considerations?
