Virtual Classroom

Evaluating Your Options

An important part of business success is a pre-start-up evaluation. Here are a few sample evaluations of different types of businesses from Starting Up: Do You Have What It Takes To Make It In Your Business? (Prentice Hall Press) by David E. Rye and Craig R. Hickman:

BUSINESS VENTURE ALTERNATIVES
MAJOR STRENGTH
MAJOR WEAKNESS
START-UP COSTS
INCOME/PROFIT/NET WORTH GOAL
TIME TO REACH GOAL
KEY TO SUCCESS
RISK RATING*

Management Consulting & Training
Ease of entry
Intense competition
$30,000
Income of $150,000 per year
3 years
Professional competence
2

Postal & Shipping Franchise
Franchise support
Heavy marketing expenses
$150,000
Profit of $200,000 per year
6 years
Customer service
4

Auto-Accessories Manufacturing
Opportunities for innovation
High capital investment
$500,000
Net worth of $10 million
10 years
Product innovation
7

Software & Multimedia Development
Explosive demand for products
Dominance of large competitors such as Microsoft
$300,000
Profit of $300,000 per year
7 years
Distribution and sales
8

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This article was originally published in the May 1999 print edition of Entrepreneur with the headline: Virtual Classroom.

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