Patcharaphorn Chavalkul (Yuyu)

Chanyanut Pinyotanmakorn (Ning)

Monrada Teewunda(DD)
Sarocha Wuttipong (June)
cs
First Screen
From “Preparing Effective Business Plans” by Bruce R. Barringer

Part 1: Strength of Business Idea

For each item, circle the most appropriate answer and make note of the (-1), (0), or (+1)
score.

Low Potential Moderate High

(-1) Potential (0) Potential
(+1)
1. Extent to which the idea: Weak Moderate Strong
● Takes advantage of an
environmental trend
● Solves a problem
● Addresses an unfilled gap in the
marketplace +1

Explanation: This is the new

business that to fill in the gap that
have not being created by anyone in
the school. From that, this is a
student price hot pot for individual
student and individual teacher that
always wanted to have something
different in their lunch time. That we
are going to make sure that our food
are coming from high quality and
clean materials.

2. Timeliness of entry to market Not timely Moderately Very timely

timely +1
Explanation: Recently, this is the
time where hot pot becomes trending
as a way to consumer among
teenagers and adults. From that, to
have this business created can give
the student different tastes during
their lunch time.
3. Extent to which the idea “adds Low Medium High
value” for its buyer or end user +1

Explanation: From the estimated

cost per pot is 20 baht, leading to the
fact that us selling 50 baht added
value for our income in 30 baht per
pot.

4. Extent to which the customer is Very satisfied Moderately Not very

satisfied by competing products that satisfied satisfied or
are already available ambivalent
+1
Explanation: The observation of all
the population in the school, they
found the food are boring and all
have the same style repeat everyday.
That sometimes, there are insects
and hairs are including in the food.
From that, this is an opportunities
for us to use this time to present the
business.

5. Degree to which the idea requires Substantial Moderate Small to no

customers to change their basic changes required changes required changes
practices or behaviors 0 required

Explanation: This start-up business

is brand new business in the school.
From that, it is hard to find someone
that are going to give the good
advices towards the business.
However, as a consumers of the
other stores, this helps the business
to understand the behaviours of the
customers in a way that can use this
understanding to help the business
improving.

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Part 2: Industry-Related Issues
Low Potential (-1) Moderate High
Potential (0) Potential
(+1)
1. Number of competitors Many Few None
+1
Explanation: Since this is a business
that have not got anyone created and
also the recently business that are
going to present are not choosing
this type. From that, we have none
competitors in this area of business.

2. Stage of industry life cycle Maturity phase or Growth phase Emergence

decline phase phase
Explanation: Still in the growing
phase due to the approximate loss of +1
33% but growing and getting back
good profit after two months. From
that, to be considered as emergence
phase. As, the products will be
changed and improved every month
or annually in order to change
different taste that fit to the
consumers.

3. Growth rate of industry Little or no growth Moderate Strong

growth growth
Explanation: Equals to the stage of 0
industry life cycle, growing rate of
industry should be averagely
growing due to small business
against another 10 food stores in the
canteen. From that, to be promoting
and having more and more taste can
be afforded any times. But as the
result of having half of the income
returns saying that the profit have
not been high enough.

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4. Importance of industry’s products “Ambivalent” “Would like “Must have”
and/or services to customers to have”
0
Explanation: Due to different tastes
of food, to consume our products as
“Would like to have” due to the fact
of the cultural of different countries
to have a specific ingredients in their
own life style.

5. Industry operating margins Low Moderate High

0
Explanation: According to the
calculation, we have the net income
of half percentage of the revenue in
returns. From that, it shows that we
are doing averagely and getting back
the same nearly the same at the
amount of our expenses.

Part 3: Target Market and Customer-Related Issues

Low Potential (-1) Moderate High
Potential (0) Potential
(+1)
1. Identification of target market for the Difficult to identify May be able Identified
proposed new venture to identify +1

Explanation: Our business is unique

and different from the other opened
business. From that, this is going to
drag more attention from the
consumers towards the business.
Moreover, our business are targeting
the teenagers and employees that
normally that would like to consume
hot pot as a treat for themselves as
well as their partners.

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2. Ability to create “barriers to entry” Unable to create May or may Can create
for potential competitors not be able to
create +1
Explanation: Due to high start up
cost, that resulting the loss of rate of
return in the first month. However, as
going to the second month, the
business starting to gain back to
where it is supposed to be standing.
From that, this shows that this
business is going to have the power to
entry.

3. Purchasing power of customers Low Moderate High

+1
Explanation: As an understanding of
spending of a student and also an
employee within the school, setting
the price at 50 Baht is something that
everyone are affordable for the lunch.
Showing that the purchasing power of
customers are high saying that almost
every customers can afford the food
that our business provide.

4. Ease of making customers aware of Low Moderate High

the new product or service
+1
Explanation: Doing posters around
the school as well as the decoration
announces on the food counter
through the school announcement
during the homeroom time create the
awareness of the customers to notice
new products incoming.

5. Growth potential of target market Low Moderate High

0
Explanation: Because of having the
same food repetition like the same
issues of the other stores in the

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 canteen over the time create this
problems to happen as the cycle.

Part 4: Founder- (or Founders-) Related Issues

Low Potential (-1) Moderate High
Potential (0) Potential
(+1)
1. Founder or founders experience in the No experience Moderate Experien
industry experience ced
+1
Explanation: For having the
experience of consuming this products
over the time, this provides the fact
that almost every students would like
to have hot pot. From that, it shows
the potential of experienced in the
same position of wanting those
products in this industry.

2. Founder or founders skills as they No skills Moderate Skilled

relate to the proposed new venture’s skills
product or service 0

Explanation: Lacking of the skills in

providing the correct ingredients for
the hot pot. However, still knowing
and pick up the right tastes of the
consumers of knowing what the
consumers actually like.

3. Extent of the founder or founders None Moderate Extensive

professional and social networks in the
relevant industry +1

Explanation: Having a good

connection and to have the social
networks to promote the industry,
bringing the society and more
consumers to know about the products
through advertisements posters on the
social networks.

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4. Extent to which the proposed new Weak Moderate Strong
venture meets the founder or founders 0
personal goals and aspirations

Explanation: Due to the student favors

of having fast lunch from this is an
advantage of having hot pot, however,
to minimise them into a small portion
than the of new venture leading to
complete the personal goals of the
business for having more profit as well
as the consumers.

5. Likelihood that a team can be put Unlikely Moderately Very

together to launch and grow the new likely likely
venture +1

Explanation: To work as a team, need

to provide more ideas and different
perspective of the team members in
order to develop and improving the by
combining them into one specific one.

Part 5: Financial Issues

Low Potential (-1) Moderate High
Potential (0) Potential
(+1)
1. Initial capital investment High Moderate Low
0
Explanation: It is something that is
affordable and to be repaid as quick as
possible as the business keep carry on
even though it is going to be a loss in
the first month.

2. Number of revenue drivers (ways in One Two to three More

which the company makes money) -1 than three

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 Explanation: It is hard for our company
to make money rather than selling
shabu.

3. Time to break even More than two years One to two Less than
years one year
Explanation: From the calculation, it +1
tells that in only two months, the
business is going to be able to have full
profit and paid the owe money of the
start-up investment.

4. Financial performance of similar Weak Modest Strong

businesses +1

Explanation: As the business is still

have the faith and to carry on, the profit
is going to strengthen as well as the
performance of the business in order to
grab the connection.

5. Ability to fund initial product (or Low Moderate High

service) development and/or initial +1
startup expenses from personal funds or
via bootstrapping

Explanation: For having the profit

immediately after two months, the
ability of funding and developing in the
further will be really easy to make and
have the high potentials to make it
successful.

Overall Potential
Each part has five items. Scores will range from -5 to +5 for each part. The score is a
guide—there is no established rule-of-thumb for the numerical score that equates to high
potential, moderate potential, or low potential for each part. The ranking is a judgment
call.

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 Score Overall Potential of the Suggestions for
(-5 to +1) Business Idea Based on Improving the
Each Part Potential

Part 1: High potential To research more

Strength of Business 4 Moderate potential about the field in the
Idea Low potential mall.
To seek for the ways
to improve the
environment at the
same time.

Part 2: Show the potentials

Industry-Related High potential more to make the
Issues 2 Moderate potential customers need
Low potential instead of would like
have.
To work harder on
the income in order
to receive larger
margin.

Part 3: To focus on
Target Market and High potential improving different
Customer-Related 4 Moderate potential kinds of hot pot in
Issues Low potential order to drag in
more customers

Part 4: To go and survey

Founder- (or High potential the founder of the
Founders-) Related 3 Moderate potential same industry in
Issues Low potential order to see how
they manage them to
make the customers
“need” the products

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Part 5: The business should
Financial Issues High potential think of another way
2 Moderate potential of making profit,
Low potential such as provide the
promoting and
dragging more
customers
Maybe should
increase the selling
price a little bit
higher in order to
not having any loss
in the first month.

Overall Assessment
High potential
15 Moderate potential
Low potential

Summary​— Our company has high potential in business idea and Target Market and
Customer-Related Issues, and it is the advantage of our company. However, we had to
improve our Target Market and Financial issues. Therefore, we should improve this
section by surveying other industries in order to improve our target market and promote
our company in order to improve our potential financial issues.

Internet Resource Table

From “Preparing Effective Business Plans” by Bruce R. Barringer

Resource to Help Complete the First Screen

Source Description Applicable Cost/Availability
Parts of
First Screen
American An easy-to-use portal for obtaining Part 3 Free
Factfinder census data. One quick way to retrieve
(http://www.factfind data is to get a “Fact Sheet” on a
er. census.gov) geographic area (by city, county, or
ZIP code), which provides population,
medium household income,
demographic breakdown (age, gender,
race), and other information.

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BizStats Has a variety of detailed financial data Parts 2 and Free
(http://www.bizstats on various retail categories. On the 5
.com) site, a user can type in the projected
income of a firm, by industry, and
receive a mock income statement in
return.
Business & Access to information on the Parts 1 and Fee based;
Company Resource organization and structure of 2 typically free if
Center industries, current industry trends, and accessed through
(http://www.gale. other information. a university
com/BusinessRC) library
City-Data.com Contains detailed information on cities, Part 3 Free
(http://www. including median resident age, median
city-data.com) household income, ethnic mix of
residents, and aerial photos.

County Business Good resources for looking at business Parts 2 and Free
Patterns activity, including the number of 3
(http://www.census. competitors, at a city, county, or state
gov/ epcd/cbp/view/ level. For example, you can find the
cbpview.html) number of drycleaners (or any other
business) in a specific ZIP code or city.

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Source Description Applicable Cost/Availability
Parts of
First Screen
Hoovers Online Brief histories and financial Parts 2, 3, Free; premium
(http://www. information on companies, industries, and 5 version available
hoovers.com) people, and products. Premium service on a fee basis or
provides access to detailed financial typically for free
information and 10-K reports for if accessed
publicly traded firms. through a
university
library
IBISWorld Detailed reports available on hundreds Parts 1, 2, 3, Fee based;
(http://www.ibiswor of industries, including industry stats, and 5 typically free if
ld. com) trends, buyer behavior, and expected accessed through
returns. a university
library
Lexis-Nexis Provides access to sales data for public Part 5 Fee-based;
Academic and private firms, which can be typically free if
(http://www. searched in a number of useful ways. accessed through
lexisnexis.com) Helps startups estimate the financial a university
performance of similar businesses. Go library
to “Business” and then “Company
Financial.”
MagPortal.com Search engine and directory for finding Parts 1, 2, 3, Free
(http://www.magpor online magazine articles. Helps 4, and 5
tal.com) startups by providing access to
magazine articles about their product/
service and industry of interest. This
information may be helpful in all areas
of feasibility analysis.
Mergent Online Provides near instant access to Parts 2 and Fee based;
(http://www. financial data, including income 5 typically free if
mergentonline.com) statements, balance sheets, and cash accessed through
flows, on more than 10,000 U.S. public a university
corporations. library
Mintel (http://www. Detailed reports available on hundreds Parts 1, 2, 3, Fee based;
mintel.com) of industries, including industry stats, and 5 typically free if
trends, buyer behavior, and expected accessed through
returns. a university
library

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Source Description Applicable Cost/Availability
Parts of
First Screen
ProQuest (no public Very robust search engine for Parts 1, 2, 3, Fee based;
Web site available) searching publications such as the ​Wall 4, and 5. typically free if
Street Journal​ and the ​New York accessed through
Times.​ Useful for all areas of feasibility a university
analysis. library

Quickfacts A very quick way to access census Parts 2 and Free

(http://quickfacts.ce bureau data, including population, 3
nsus. gov) median household income, census
breakdowns by age and other
demographic characteristics, and so on.
ReferenceUSA Provides contact information, Part 5 Free
(http://www.referen estimated annual sales, credit rating
ceusa. com) score, year established, news, and other
information on both public and private
companies. Contains more information
on private firms than many similar
sites. Helps startups estimate the
financial performance of similar
businesses.
Standard & Poor’s Detailed reports available on hundreds Parts 1, 2, 3, Fee based;
NetAdvantage of industries, including industry stats, and 5 typically free if
(http://www.netadva trends, buyer behavior, and expected accessed through
ntage.standardpoor. returns. a university
com) library
Trade (and Directories provide access to the Web Parts 1, 2, 3, Free
Professional) site addresses of trade associations in 4, and 5
Association all fields. The trade associations can be
Directories contacted to obtain information on all
(http://idii.com/reso areas of feasibility.
urce/
associations.htm)
(http://www.
weddles.com/associ
ations/index. cfm)
(http://www.
ipl.org/div/aon/)

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Source Description Applicable Cost/Availability
Parts of
First Screen
Yahoo! Industry Provides a directory of industries, Parts 2, 3, Free
Center (http://biz. along with a list of the companies in and 5
yahoo.com/ic) each industry, the latest
industry-related news, and
performance data on the top companies
in an industry.
FIGURE 2-1

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