Stage 8.Estamate the value of the targets. Obviously the sale of 20 briefcases in a year is insufficient to build a business. However, given there are 600 school boards in the country, the entrepreneur’s potential as distinct from market potential is 12,000 brietcases. The question is, how to reach these customers and will it be worth the effort. Then again, if there are two or three other targets, it may be the case that the entrepreneur will not more on a national scale, but perhaps on a provincial basis at the onset, at least. Then if she or he can sell 5,000 cases in a year with a gross margin of $20 each, does the $100,000 represent a sufficient return in the first year, at least.
Figure 11.8 Evaluation Stages