Page 180 - Business Plans that Work A Guide for Small Business

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Exercise

I. Market- and Margin-Related Issues

Criterion Higher Potential Lower Potential

Need/want/problem Identified Unfocused
Customers Reachable and Unreachable/loyal
receptive to others
Payback to users < 1 year > 3 years
Value added or Investor realizable Investor realizable
created returns 40% + returns < 20%
Market size $50–$100 million < $10 million or
+1 billion
Market growth rate +20% < 20%, contracting
Gross margin 40%+ and durable < 20% and frag ile
Overall potential:
1. Market Higher _________ avg ______________ lower
2. Margins Higher _________ avg ______________ lower

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