Business idea scorecard

What the business idea scorecard does

Choosing between ideas is easier when you compare them the same way. Set how much each criterion matters, such as demand, startup cost and skill, score each idea from one to five, and the scorecard gives each idea a weighted score and a rank so the decision is based on more than a feeling.

Who it is for

People deciding what business to start and mentors who help them think it through.

How to use the workbook

1. Set the weight for each criterion at the top; they should add up to 100 percent.
2. List each idea and score it from one to five.
3. Read the weighted score and the rank.
4. Test the winner with a small trial before you commit.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Five criteria with your own weights
• Weighted score for each idea
• Rank from best to worst
• Check that weights add up to 100 percent
• Chart of scores by idea

The workbook has these sheets: Instructions, Ideas, Scores. The main table has the columns Idea; Demand (1-5); Startup cost (1-5, 5 = cheap); Your skills (1-5); Competition (1-5, 5 = little); Profit potential (1-5); Weighted score; Rank. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Score from evidence such as customers you have spoken to.
• Ask someone else to score too and compare.
• Revisit the weights if your priorities change.
• A high score is a reason to test, not a guarantee.

Why keep this record

Running a business on memory works until it grows. Writing the numbers down turns opinions into facts you can compare month to month, and shows early which products, customers or costs deserve attention. Even a simple workbook, used every week, usually beats a sophisticated one that is opened once a year.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

A plan is only as good as the numbers you put in. Start with honest estimates, update the workbook as real figures arrive, and compare the two so your next estimate is better. Save a dated copy each month so you can see how your thinking changed.

Read how to build a cash flow forecast for the wider picture. See more business templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Guide: How to build a 12-month cash flow forecast for a small business
• Guide: How to price your products and services: markup, margin and break-even
• Guide: Turnover tax for small businesses in Kenya: rate, limits and when to use it
• Another template: 12-month cash flow forecast
• Another template: Annual operating budget by department
• Another template: Break-even and pricing calculator

Need something different? Request a custom template, browse all guides or see every Excel template.