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1.

Investment Feasibility Assessment


www.atdc.org
Identify strengths and weaknesses in your business as compared to a model investment opportunity.

Outcome

Overview
This assessment identifies the major (not all) criteria that an investor will use to evaluate an investment opportunity in your business. By evaluating your business against these criteria, you can determine your readiness to pursue outside investment. The criteria can also be used to develop benchmarks for improvement in various aspects of your business.

Instructions
Step 1: Review the Investment Feasibility Assessment Criteria Descriptions. Review the criteria and descriptions on Sheet 2 of this worksheet. For each criterion, choose the description that most closely matches your situation. Mark that descriptions number (1 through 5) on the Scoring Page (Sheet 3 and Sheet 4 of this worksheet). The company and their coach have separate scoring pages. Step 2: Total Score. On the Scoring Pages, the points will be automatically totalled for your investment opportunity on the 20 criteria. NOTE: The model, or perfect, investment opportunity would score a 5 on every criterion, for a total of 100 points. Step 3: Evaluate your business. In a comparison of an investment in your business against the model investment opportunity, no score guarantees an investment. A score of less than 4 for any individual criterion indicates a weakness in the investment opportunity, which requires further consideration. Also, pay attention to any area (management, market, technology, traction, business model) where your score was less than one-half of the possible points overall. The Analyses on Sheets 3a & 4a provide some additional information based on the scores that the company received for each criterion. Step 4: Work with your coach to address challenging areas. Your coach will independently complete this assessment based upon his/her perspective on your business. Sheet 5 of this worksheet combines the results of the company and coach score sheets and compares how each criertia was evaluated. Areas of agreement and divergence are highlighted, and the company should discusss strategies to address any weak areas and identify why there is this difference in scoring.

2. Criteria and Descriptions


MANAGEMENT
1. 2. 3. 4. Team has limited record of success. One or two team members have significant professional accomplishments. Several members of management have significant professional accomplishments. Several members of management have created wealth for investors.

Transferable record of success

5. Several members of management have created wealth for investors via a similar business concept. 1. Team can function without executive dining privileges and personal assistants. 2. Entrepreneurial experience limited to internal corporate initiatives. 3. Team has entrepreneurial experience but limited success to date. 4. Several team members have grown a company from zero to over $20M in revenues. 5. Team has grown multiple companies from zero to over $20M in revenues 1. Lots of passion, limited functional or industry experience. 2. Company has identified key hires to provide functional and industry expertise. 3. Team has appropriate functional and industry experience (given its stage). 4. Several members of senior management have significant functional and/or industry experience. 5. All senior team members have significant functional and industry experience. 1. Team is totally new. 2. New team with complementary backgrounds. 3. New team but has worked together, successfully, for several months. 4 CEO has previously worked with one to two key team members. 5. Several members of management have worked together before. 1. Technology-focused team. 2. Key functional leaders in place, no CEO. 3. Key functional leaders and stage-appropriate CEO in place. 4. Exit-ready CEO and key functional leaders in place. 5. Exit ready team in place.

Ability and experience to leverage scarce resources

Appropriate functional and industry experience

Worked together previously

Team is complete

2. Criteria and Descriptions


MANAGEMENT MARKET Available market well defined and large
1. <$100M annually. 2. $100M - $500M annually. 3. $500M - $750M annually. 4. $750M - $1B annually. 5. > $1B annually. 1. <10% annually. 2. 10-25% annually. 3. 25-50% annually. 4. 50% - 100% annually. 5. >100% annually. 1. Many strong competitors. 2. No competitors known. 3. Competitors known, with moderate weaknesses in Companys defined niche. 4. Competitors known, with significant weaknesses in Companys defined niche. 5. Competitors known and pose limited threat. 1. Customers are conservative and only buy from established players. 2. Customers are historically conservative but open to new players given current market conditions. 3. Several trailblazers exist that will buy from new players to exploit a strategic advantage. 4. Trailblazers exist and majority of remaining customers will adopt upon positive validation of value proposition. 5. Customers are aggressive and frequently buy from early stage companies. 1. Competitors can enter at will. 2. Market entry possible with modest time and capital investment. 3. Market entry restrict by at least one barrier that requires a significant investment of time and capital to overcome. 4. Market entry restrict by several barriers that require a significant investment of time and capital to overcome. 5. Market entry is difficult even for committed and well financed competitors.

Market is growing

Competition has identifiable weaknesses

Customers receptive to early stage companies

Market entry by new competitors is difficult

2. Criteria and Descriptions


TECHNOLOGY MANAGEMENT Company based on unique or innovative use of technology
1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 1. Technology is well-established. Technology is well-established. Company has identified potentially novel applications. Technology is well-established. Company has identified novel applications. Novel technology platform with significant potential. Novel technology platform that is widely-recognized as state of the art. Company has no relationship with the creators of its technology. Company has informal access to the creators of its technology. Company has formal access to the creators of its technology. Company uses external personnel and employees to support and expand its technology. Companys technology is supported by internal employees. Technology is applicable to a limited set of applications.

Expertise in place to maintain and expand technology

2. With an investment in R&D, technology is applicable to a modest set of applications in several markets.

Technology is broad

3. Technology is applicable to a modest set of applications. 4. With an investment in R&D, technology is applicable to a significant set of applications in several markets. 5. 1. 2. 3. 4. 5. Technology is applicable to a significant set of applications in several markets. Company has non-exclusive rights to its technology. Company has exclusive rights to portions of its technology. Company has exclusive rights to its technology subject to certain performance metrics. Company has exclusive rights with the option to own its technology. The Company owns all of its technology.

Technology is exclusive to Company

2. Criteria and Descriptions


TRACTION MANAGEMENT
1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. Companys product/service is just a concept. Customer feedback has shaped product/service specifications. Concept has been reduced to a prototype. Customers are using/testing pre-commercial versions of Companys product/service. Product/service is ready to sell. No target customers. Target customers know, pain is unknown. Company has identified target customers with significant pain. Value proposition is compelling but only in qualitative terms. Value proposition is compelling and quantifiable. Many leads, few qualified prospects. Significant pipeline of qualified prospects. Customers are sampling but not yet buying. Customers have verbally communicated intent to purchase. Company is generating revenues through the delivery of its value proposition.

Product/service is ready to sell

Value proposition is quantifiable in customers terms

Customers have validated Companys value proposition BUSINESS MODEL Business model is attractive and efficient

Multiple exit opportunities exist

Favorable risk/return tradeoff for investors

1. Lumpy revenues, low margins, capital intensive. 2. Profitable but difficult to scale. 3. Profitable and scalable. 4. Highly profitable, scalable, but capital intensive. 5. Highly profitable and scalable. 1. Acquisition or IPO is unlikely. 2. IPO is unlikely and pool of potential acquirers is limited. 3. Several potential acquirers identified. 4. Exit via acquisition probable; IPO is possible. 5. Exit via acquisition or IPO. 1. Significant capital investment required. Investors likely to achieve modest returns even under best case conditions. 2. Significant capital investment required. Investors will probably receive a return of their capital but upside will be modest. 3. Modest capital required. Investors equally likely to achieve a homerun or total loss of capital. 4. Modest capital required. Potential to become a homerun with a return of capital likely under most conditions. 5. Potential homerun opportunity. Investors will make money under most conditions.

3. Company Scoring Page


Transferable record of success. Ability and experience to leverage scarce resources. Appropriate functional and industry experience. Worked together previously. Team is complete. Available market well defined and large. Market is growing. Competition has identifiable weaknesses. Customers receptive to early stage companies. Market entry by new competitors is difficult. Company based on unique or innovative use of technology. Expertise in place to maintain and expand technology. Technology is broad. Technology is exclusive to Company. Product/service is ready to sell. Value proposition is quantifiable in customers terms. Customers have validated Companys value proposition. Business model is attractive and efficient. Multiple exit opportunities exist. Favorable risk/return tradeoff for investors.

MANAGEMENT

5 Total STATUS
0 0 0 0 0 0 0 0 0 0

Next to each question, place an '1' underneath the score (1 -5) for where you believe your company is

MARKET

Please ensure that you only enter ONE score (1 - 5) for each row item, otherwise the total score will not be reflected correctly. The STATUS column will show a red X if more than one score is entered. LEGEND Need to focus here Not so good Medium Good Great!!

TECHNOLOGY

0 0 0 0 0 0 0 0 0 0

TRACTION

TOTAL SCORE

BUSINESS MODEL

3a. Analysis of Company Score


MANAGEMENT REMEDIES & COMMENTS

Transferable record of success.

No Company Score Recorded Yet

Ability and experience to leverage scarce resources.

No Company Score Recorded Yet

Appropriate functional and industry experience.

No Company Score Recorded Yet

Worked together previously.

No Company Score Recorded Yet

Team is complete.

No Company Score Recorded Yet

3a. Analysis of Company Score


MARKET REMEDIES & COMMENTS

Available market well defined and large.

No Company Score Recorded Yet

Market is growing.

No Company Score Recorded Yet

Competition has identifiable weaknesses.

No Company Score Recorded Yet

Customers receptive to early stage companies.

No Company Score Recorded Yet

Market entry by new competitors is difficult.

No Company Score Recorded Yet

3a. Analysis of Company Score


TECHNOLOGY
Company based on unique or innovative use of technology.
No Company Score Recorded Yet

REMEDIES & COMMENTS

Expertise in place to maintain and expand technology.

No Company Score Recorded Yet

Technology is broad.

No Company Score Recorded Yet

Technology is exclusive to Company.

No Company Score Recorded Yet

TRACTION
Product/service is ready to sell.
No Company Score Recorded Yet

Value proposition is quantifiable in customers terms.

No Company Score Recorded Yet

Customers have validated Companys value proposition.

No Company Score Recorded Yet

BUSINESS MODEL
Business model is attractive and efficient.
No Company Score Recorded Yet

Multiple exit opportunities exist.

No Company Score Recorded Yet

Favorable risk/return tradeoff for investors.

No Company Score Recorded Yet

4. Coach Scoring Page


Transferable record of success. Ability and experience to leverage scarce resources. Appropriate functional and industry experience. Worked together previously. Team is complete. Available market well defined and large. Market is growing. Competition has identifiable weaknesses. Customers receptive to early stage companies. Market entry by new competitors is difficult. Company based on unique or innovative use of technology. Expertise in place to maintain and expand technology. Technology is broad. Technology is exclusive to Company. Product/service is ready to sell. Value proposition is quantifiable in customers terms. Customers have validated Companys value proposition. Business model is attractive and efficient. Multiple exit opportunities exist. Favorable risk/return tradeoff for investors.

MANAGEMENT

5 Total STATUS
0 0 0 0 0 0 0 0 0 0

Next to each question, place an '1' underneath the score (1 -5) for where you believe your company is

MARKET

Please ensure that you only enter ONE score (1 - 5) for each row item, otherwise the total score will not be reflected correctly. The STATUS column will show a red X if more than one score is entered. LEGEND Need to focus here Not so good Medium Good Great!!

TECHNOLOGY

0 0 0 0 0 0 0 0 0 0

TRACTION

TOTAL SCORE

BUSINESS MODEL

4a. Analysis of Coach Score


MANAGEMENT REMEDIES & COMMENTS

Transferable record of success.

No Coach Score Recorded Yet

Ability and experience to leverage scarce resources.

No Coach Score Recorded Yet

Appropriate functional and industry experience.

No Coach Score Recorded Yet

Worked together previously.

No Coach Score Recorded Yet

Team is complete.

No Coach Score Recorded Yet

4a. Analysis of Coach Score


MARKET REMEDIES & COMMENTS

Available market well defined and large.

No Coach Score Recorded Yet

Market is growing.

No Coach Score Recorded Yet

Competition has identifiable weaknesses.

No Coach Score Recorded Yet

Customers receptive to early stage companies.

No Coach Score Recorded Yet

Market entry by new competitors is difficult.

No Coach Score Recorded Yet

4a. Analysis of Coach Score


TECHNOLOGY
Company based on unique or innovative use of technology.
No Coach Score Recorded Yet

REMEDIES & COMMENTS

Expertise in place to maintain and expand technology.

No Coach Score Recorded Yet

Technology is broad.

No Coach Score Recorded Yet

Technology is exclusive to Company.

No Coach Score Recorded Yet

TRACTION
Product/service is ready to sell.
No Coach Score Recorded Yet

Value proposition is quantifiable in customers terms.

No Coach Score Recorded Yet

Customers have validated Companys value proposition.

No Coach Score Recorded Yet

BUSINESS MODEL
Business model is attractive and efficient.
No Coach Score Recorded Yet

Multiple exit opportunities exist.

No Coach Score Recorded Yet

Favorable risk/return tradeoff for investors.

No Coach Score Recorded Yet

5. Company vs. Coach


Company MANAGEMENT
Transferable record of success. Ability and experience to leverage scarce resources. Appropriate functional and industry experience. Worked together previously. Team is complete.

Coach
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Status

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

MARKET
Available market well defined and large. Market is growing. Competition has identifiable weaknesses. Customers receptive to early stage companies. Market entry by new competitors is difficult.

TECHNOLOGY
Company based on unique or innovative use of technology. Expertise in place to maintain and expand technology. Technology is broad. Technology is exclusive to Company.

The purpose of this sheet is to evaluate those areas where there are sizeable (2 or greater) differences between where the company feels they are and where their coach feels the company is. Ideally the status should indicate a green check. The sections with a red X should more closely reviewed and the Venture Catalyst/Coach should be consulted

TRACTION
Product/service is ready to sell. Value proposition is quantifiable in customers terms. Customers have validated Companys value proposition.

BUSINESS MODEL
Business model is attractive and efficient. Multiple exit opportunities exist. Favorable risk/return tradeoff for investors.

Things are Good Responses


MANAGEMENT
Great! This will definitely be an advantage moving forward and you should ensure that you take full advantage of the previous successes that your management team has had. Incorporate those portions that fit well with what you are doing and modify those that would be useful in your current venture. Ensure that any hard lessons learnt are not repeated and pre-empt problems areas that were encountered previously. Great! Having this ability and Experience can provide a competitve advantage and it should be a part of the companies overall strategy in order to succeed. For a software or other technology company, relevant technical experience is critical to getting a good product out the door. Generally, founders have strong technical experience, so its important to ask yourself whether you have good technical management experience on the team, as getting products shipped on time is important. If there is more than one technical member, you need to consider how the responsibilities will be divided/shared. Can founders communicate business "vision" in non-technical terms? Good. Often a startup is formed when several colleagues leave a company because they want to collectively create something new. Because they are familiar with each other's values, corporate culture gets established quickly and is one that the founding team is comfortable with. When entrepreneurs can attract people who have worked for them in the past, that's a good sign. For one thing, it's an endorsement of their leadership abilities. Perhaps more important, the trust that typically takes so long to build is there from the beginning. Good. The management team is critical to the company, both operationally and in attracting outside investment. While outside investors can help in filling out the management team after the financing, you can increase valuation and attractiveness to investors by filling in gaps in the management team beforehand.

Transferable record of success. Ability and experience to leverage scarce resources.

Appropriate functional and industry experience.

Worked together previously.

Team is complete.

Things are Good Responses


MARKET
Be prepared to provide a thorough definition of your target market. Such a definition should include a description of the problem and the size of the problem that your product or service solves. Additionally, you should be prepared to define the customer, their behaviors, and how those behaviors can be capitalized upon to bring your venture to profitable and sustainable fruition. Your understanding of the market and the estimation of the market size and demographics should be supported by thorough research through reputable sources such as Gartner, Forrester, industry or trade associations, government research, and other sources. Investors are primarily interested in investing their money in large, profitable, and fast-growing markets. Absent such market characteristics, venture capitalists will probably not be interested. Your understanding of the market size and penetration dynamics are critical to selling your venture to investors. Perform the necessary research to size the market and be prepared to reference those research sources. Additionally, you must determine what portion of the market is realistically achievable for your venture. Be aggressive in your assessments, but be prepared to defend your conclusions on your market penetration. A demonstrated understanding of the market is critical. Be prepared to discuss the predicted (next five years) rate of growth for the market segment. Are the markets regional, national, international? The more expansive the market, the more specialized knowledge and expertise is needed to capitalize on the markets. What factors will drive the market growth, and what is the likelihood that these factors will materialize? A thorough understanding of the competition and a well constructed plan to compete and exceed is very important. Cite the principal competitive factors in the market: product performance, reliability, durability, styling, delivery, service, merchandising, price, and other factors. Know how you will react to changes in the market, and attempt to identify how the competition will react to your entry into the market and the changes that competition brings. It is imperative to know what factors will drive customers to your technology. What are the critical success factors upon which the customer will make his decision? Such factors may include performance, reliability, durability, availability, price, and service. Each factor and its importance relative to the others will determine where management should invest its time and money in the product development phase. In addition, does your product have different market segments, and do the customers in each segment buy for the same reasons? Does your market have any special buying characteristics which should be considered, such as seasonality, cyclical patterns, or other industry trends? How have you determined the barriers, and how will you overcome them? If barriers exist ahead of you, investors will want to see how you will overcome them. Desirably, your product will not only overcome barriers, but will also create further barriers behind you as you enter the market. A thorough understanding of the market barriers will help you justify your target market share.

Available market well defined and large.

Market is growing.

Competition has identifiable weaknesses.

Customers receptive to early stage companies.

Market entry by new competitors is difficult.

Things are Good Responses


TECHNOLOGY
Company based on unique or innovative use of technology. Expertise in place to maintain and expand technology.
How unique is it and how sustainable is your position (sustainable competitive advantage)? Does the way in which your product is unique MATTER to the customers? Will innovations be necessary to maintain market leadership? Have you planned for these? Good. This will be important for the company to protect and expand upon their technology and keep competitors at bay for as long as possible. This is good, but the company should exercise caution here. While there are many potential applications,markets, and customers, the company should very carefully choose their targets. The company should conduct a strategic review in order to determine what the best course of action should be in order to maximize the benefit to the company and the customers that they choose to serve. Good. Investors will require assurance that you have full rights to the technology as a condition to their investment. If your rights arise from a license, you'll want to make sure the scope of the license is sufficient and that any royalty obligations are reasonable and in line with market royalties. Is your IP position well protected and defensible? Is it patented, and if so, how long does the patent last?

Technology is broad.

Technology is exclusive to Company.

TRACTION
Product/service is ready to sell. Value proposition is quantifiable in customers terms.
Is it unique/proprietary? Do you have a strategy for continued innovation? Have you packaged the technology into a product or service that fits your target market? Good. This will provide focus for the business and should allow you to manage resources and conduct marketing effectively. Great! This puts your company in a good position going forward, but you should constantly engage and refine the value proposition. It is not discretionary. If you do not create and continuously reinforce, the value of your company, products, services and the people standing behind them then you put your business at risk.

Customers have validated Companys value proposition.

BUSINESS MODEL
Good. You should constantly be looking inside and outside of your industry to ensure you are using the best possible model for your business and you should not become complacent with a model that works today because it might not be the best model to get the company to the next level Good. This will allow the company the flexibility to consider different options, although the company should consult with a mentor/coach/business leader to seek guidance and feedback on their decision This is good because it will bring many investors to the table, but ensure that you have not over promised and that the original founders of the company might not benefit from the success of the business

Business model is attractive and efficient. Multiple exit opportunities exist.

Favorable risk/return tradeoff for investors.

Things can Improve Responses


MANAGEMENT
Many investors base their entire investment decision on the management team behind a venture. Investors expect a well-rounded team of professionals with experience in every function critical to the business. List past positions and responsibilities that directly relate to the current position. Outline the companies you worked for, the duties, the successes, the experience gained, and how these skills transfer to your current position. Industry experience is looked at favorably by investors as they size up your management team. Some investors consider industry experience an absolute must, but if you lack direct industry experience, build on related and successful experiences from other fields. Describe your abilities and experiences in previous management positions. The number of years you were in management roles? The number of people you supervised? For how long? The goal here is to present a track record that predicts future success. Should be able to leverage scare resources to maximize the impact those resources. In order to optimize the use of resources one must first understand the goals against which resource use should be optimized. If you are lacking technical talent, this is an area youll need to expand. At many start-ups, management requires that all prospective engineers take rigorous programming tests the quantity of technical experience is not as important as the skill and ability. From a management team perspective, its more important to have engineering/technical management experience, and generally that person should be a much better manager than technologist. However, this may not be important if technology is not required to develop your product or service. If it is important, you need someone with experience in licensing deals and IP issues. Often a startup is formed when several colleagues leave a company because they want to collectively create something new. Because they are familiar with each other's values, corporate culture gets established quickly and is one that the founding team is comfortable with. When entrepreneurs can attract people who have worked for them in the past, that's a good sign. For one thing, it's an endorsement of their leadership abilities. Perhaps more important, the trust that typically takes so long to build is there from the beginning. It is never too soon to get started. The management team is critical to the company, both operationally and in attracting outside investment. While outside investors can help in filling out the management team after the financing, you can increase valuation and attractiveness to investors by filling in gaps in the management team beforehand.

Transferable record of success.

Ability and experience to leverage scarce resources.

Appropriate functional and industry experience.

Worked together previously.

Team is complete.

Things can Improve Responses


MARKET
Obviously, the lack of a clearly defined market will diminish your chances for success in both the short run and the long run. In the short run, you will be unable to raise capital and may damage your reputation with the investment community. In the long run, your venture will most likely not be successful. You should spend more time researching markets that your technology may enhance. Consider other applications/markets to which your technology may be adapted. Limited market size limits the potential revenue and profits to be generated by your venture. Even dominant penetration in a lesser market may not allow you to generate sufficient returns for your investors. However, investors are strategic, and your ability to demonstrate to the investors that you really know your market (although not as large as hoped) and how to tap its potential may get their attention. They may be interested in smaller markets if they are experienced in the market and have established connections within the market that may enable them to increase your penetration of the market. Additionally, strategic investors who already operate ventures within your market may appreciate what your product can do for the market (including increasing the size of the market). Research the investment sources to determine if there may be more strategic investors for your venture. Finally, consider whether there are other, larger markets that may benefit from your product or service. In a mature or declining market, your product or service must be an improvement or replacement for what is already available. Your key is to realistically demonstrate that you understand the market and how your offering changes the dynamics of this market. You must demonstrate why customers will abandon their current product in favor of your offering. What will be your competitive factors that will drive your success? Price? Service? Quality? Innovation? Reliability? Also, have others tried to penetrate this market, and what were their results? It will be difficult to raise money without a solid understanding of the market and its participants. One of the greatest temptations in the development of the business plan is to overstate your own strengths and to understate the competition. This can be self-defeating, since you base the actions on the directions charted in the business plan. Moreover, prospective investors are unlikely to back an entrepreneur who lacks a realistic view of the competition. Show how the competition could deter your plans and how the venture can be adaptable to meet the changing environment in these situations. Investment of valuable management resources (including time and money) is largely dependent on management's understanding of the customers' buying decisions. Research others in your market and determine what their key success factors are. Their knowledge of the customer should be evident. Ensure that your research provides you with a clear understanding of what drives the customers' purchase decisions, considering qualitative factors such as performance, quality, reliability, durability, and service and quantitative factors such as price and product availability. Investors will quickly conclude that a management team unfamiliar with the market barriers to entry cannot predict the amount of funding necessary to achieve success in the market.

Available market well defined and large.

Market is growing.

Competition has identifiable weaknesses.

Customers receptive to early stage companies.

Market entry by new competitors is difficult.

Things can Improve Responses


TECHNOLOGY
Company based on unique or innovative use of technology.
What is your competitive advantage? Are those competitive advantages sustainable? It is important for the company to protect and expand upon their technology and keep competitors at bay for as long as possible. Find a way to ensure that the company is in charge of the technology that forms the core of the business because without this is will be difficult to create any significant barriers to entry and your company might find itself losing market share to a competitor. The company should spend some time and resources to ensure that alternative applications and uses for your product/services have been considered. Many times it will be one of these alternatives that find traction in the market place and it allows the company to establish themselves and still be able to offer the orginal concept if the opportunity presents itself. Without rights to use the technology, you can't move forward or expect to receive any outside investment. If a current or former employer or anyone else owns the technology, you need to negotiate for the rights to the technology by assignment, license, or otherwise. The scope of the license needs to be sufficient to achieve your goal, and any royalty obligations should be reasonable and in line with market royalties.

Expertise in place to maintain and expand technology.

Technology is broad.

Technology is exclusive to Company.

TRACTION
Product/service is ready to sell.
How long and how much money will it take to develop? What are the risks that you are not able to develop the technology as planned? Are there others (competitors) developing similar technologies, and if so, how close are they to beating you? A true value proposition is quantifiable with hard, tangible, grounded numbers framed within financial metrics CFOs quickly understand and use to make decisions. Of course, all CFOs are not the same, and targeted analysis and perspectives will need to be shown around particular CFOs needs. Value ultimately drives the decisions companies make when evaluating different products, services and bundled solution options, including internal options. The value of a product or service is the customers expectations of quality in relation to the amount paid for it and it is important that you have some sort of indication from your target customers that validates the value you believe your product/service has.

Value proposition is quantifiable in customers terms.

Customers have validated Companys value proposition.

BUSINESS MODEL
You should consult with industry experts and benchmarks against other players in your industry to determine what business model is most suitable. You should also look outside of your industry to determine if there is a model that would work well for your business and might even provide a competitive edge. Once a suitable model is found, do not become complacent but rather you should continuously evaluate if the model is working and to determine if it will get the business to the next level. You should consider if there are alternative exit opportunities. This will provide you with some flexibility and the ablity to make an exit decision that is right for you and for the business. This might it difficult to raise sufficient capital to invest and grow the business and you should determine if there are any means to make the investment more favorable to investors while at the same time ensuring that the original founders are still able to benefit from any succes that the business will have.

Business model is attractive and efficient.

Multiple exit opportunities exist.

Favorable risk/return tradeoff for investors.