Business Model Scoring Machine

The Online Business Model Scoring Machine

Business Model Scoring Machine (non-scientific)

This is a business model scoring machine that is for entertainment purposes only.

 

1) Will your business model earn more money for you than if you went out and got a job?

Yes
No

 

2) Does your business require heroic efforts to be successful?

Yes-- I need to hit a home run like the hoola hoop, Frisbee Trivial Pursuit or Pogs
No-- good execution should make me successful

 

3) Will your business use a direct sales approach, connecting directly between you and your customers/clients?

Yes
No

 

4 a) Can your business harness guerilla marketing or does it need a large upfront investment in traditional marketing?

Yes-- It can harness guerilla marketing
No-- It needs a large upfront investment in traditional marketing

 

b) Can your business use guerilla marketing research?

Yes
No

 

c) Can your business use reverse-selling/solution-selling/buying-on-behalf-of-your-client type selling?

Yes
No

 

5) Does your business have any of these examples of "pixie dust" in the business model?


a) You are among the first movers

Yes
No

b) Your business model uses a lot of creativity

Yes
No

c) You have some type of control over factors of production, or a competitive advantage

Yes-- I have some type of control over design or utility patents, copyright material, trademarks, franchises, licenses, formulas, trade secrets, prime locations, etc.
No-- I am relying on good execution

 

6) Do you have a personal network and/or mentor that you can bounce ideas off of?

Yes
No

 

7) The market you are entering has entrenched competitors with deep pockets

Yes
No

 

8) You are entering an industry where "all boats are rising" (the industry is growing)

Yes
No

 

9) You and your team are comfortable selling

Yes
No

 

10) Is your business model scalable?

Yes-- our systems and processes don't need much more investment as our volumes grow
Partly-- some parts of our systems and processes don't need much and some do
No-- as volume grows, we have to add proportionately more resources to service clients and customers

 

11) Can you start this business with limited amounts of capital?

Yes-- I can start with my own resources plus friends, family and other forms of bootstrap capital
No-- I need VC funding

 

12) Can you pre-sell and get launch clients upfront?

Yes
No

 

13) How long will it take to launch your product/service?

< 6 months
6-12 months
12-24 months
24-48 months
> 48 months

 

14) How long is the sales cycle in your business?

It's negative, I can pre-sell.
It's contemporaneous; sales, cash in and cash out are simultaneous.
It takes 30 days to sell and 30 days to collect
It takes 60 days to sell and 30 days to collect
It takes 90 days to sell and 30 days to collect
It takes six months to sell and 30 days to collect
It takes a full year to sell and 30 days to collect

 

15) How would you describe your product or service?

It's a custom product that requires custom processing
It's a standard product that is mass-produced
It's a standard product that is custom-made
It's a custom product that is made from standard inputs and reverses out a lot of the work to clients who self help or customize their own purchase

 

16) Do you have a partner(s)?

Yes
No

 

17) Are you relying on great execution with a good idea rather than a great idea with good execution?

Yes-- great execution
No-- great idea

 

18) Can the business run/make money without you?

Yes-- I can make money 'while lying on a beach'
No-- my business needs me to be there most of the time to succeed

 

19) How long will it take to get to breakeven?

< 6 months
6-12 months
12-24 months
24-48 months
> 48 months

 

20) How will you handle expansion?

I can handle a global market from one location
I need to establish branch offices in other cities to expand
I can franchise the business
I can 'branchise' the business with agents

 

21) I plan on using the following sales channels (select as many as are appropriate)

a) Franchisees
Yes No

b) Online Affiliates
Yes No

c) A Network of Distributors
Yes No

d) Independent Agents
Yes No

e) My own direct sales efforts and that of my team
Yes No

f) Trade Shows
Yes No

g) My web site with SEO (Search Engine Optimization)
Yes No

h) Online white labeling
Yes No

i) International Subsidiaries
Yes No

j) Branchisees
Yes No

k) Alliance Partners
Yes No

 

22) We can turn services into products by linking our client's needs directly with our supply chain

Yes
No

 

23) We can provide Customer Service that relies heavily on self help FAQs

Yes
No

 

24) How complex is the execution of your business likely to be

Very complex-- a lot of steps and a lot of things need to go right including taking care of technical and market risks but the payoff will be great if it works
I have kept it simple and the payoff, if it works, is still huge
I have kept it simple and the payoff is limited but still better than if I got a JOB

 

25) I plan on:

Doing everything in house and being integrated vertically
Focusing on my core competency and sub-contracting everything else out
Doing a lot of things in house and contracting out a few non critical things



Final Score: %

The Business Model Scoring Machine is scored out of 100%. The highest possible score is 100% and the lowest possible score is 7%.

Note: Students are asked not to use this test for any purpose other than entertainment.

Copyright. Dr. Bruce M. Firestone, Ottawa, Canada. 2003. Contributions by students Kevin Bennett, Ryan North and The Winter 2003 Class of 42.491.