Abstract
M.Comm.
Du Plessis (1993:649) states that the most common reasons for business failure are the lack of understanding of the market and inferior products. The first point in Timmons' criteria list focuses on the industry and market. This is of utmost importance as no correct analysis of a new venture's viability can be done if there is not a full understanding by the potential investor of the exact market that he/she intends to venture into. Timmons does not highlight the importance of the product as such in his criteria list although inferior products are one of the most common reasons for failure. Timmons' fatal flaw aspect, point six, is however very important as it is an "abort checkpoint". If the venture has a fatal flaw, regardless of everything else being perfect, it could cancel the potential venture. This fatal flaw aspect is in line with Cartland's "subjective determination" criteria. Various probabilities are difficult or impossible to quantify accurately. If the entrepreneur is not totally convinced of the probability of success, it should be seen as a fatal flaw and the venture abandoned. Timmons' list of eight criteria is seen to incorporate the broadest and most appropriate checklist. Chapter three will concentrate on the industry, market and product in more detail, thus ensuring a thorough understanding of the market and product, avoiding one of the weaknesses in Timmons' criteria. In chapter four the business opportunity for echinoderms in South Africa will be evaluated against the eight factors as outlined especially by Timmons in this chapter.