VERIFYING YOUR BUSINESS IDEA

THE TEST
Value Proposition
• What need do you fill or what problem do you solve?
Target Market
• Who are you selling to?
Revenue Model
• How will you make money?
Unique selling Proposition
• What will differentiate your business from the competition?
Barriers to Entry
• What challenges/obstacles stand on your way?
Competitive Analysis
• How many competitors do you have and what is their quality?
Market Size
• How big is your market in Ksh?
Market Growth
• How fast is the market growing or shrinking?
Market Share
• What percentage of the market do you believe you can gain?
Start up Costs
• How much does it cost to start?
Investment Needs
• Do you plan to use debt capital or to raise investments?
Return on Investment
• If you take on investment, how much money do you think your investors will get back in return?
Type of Business
• What type of business do you want to set up for example Sole Proprietorship, Limited Liability Company or Corporation?
Exit strategy
• Do you plan to sell your company or go public (list in the stock exchange) one day?