29 June 2008

Evaluation of your business proposition

For any one who is seeking private equity finance or looking to raise debt finance then the following questions need to be considered and sef-evaluated before any investment proposition:

1. Please provide a quick summary of the product or service you offer?
2. Please describe its purpose / application?
3. Please provide a brief summary of the sector your company operates or intends to operate in.
What market do you operate or intend to operate in?
4. Who is the management, and what are their strengths / weaknesses?
5. How have you supported yourself so far?
6. What is the long term corporate plan?
7. what is the market potential (demographic, geographical etc)?
8. What are the main events happening or expected in the market?
9. What are the key characteristics of the market?
10. What are / will be the key success factors and will the success of the venture be based on?
11. Is the business profitable? When do you project profitability?
12. What are the main risks that you can identify for the business?
13. Have you considered equity finance or debt finance (depending on what is being pitched)?
14. What is the funding for?
15. What are your proposing to offer your investors?
16.What is the estimated exit timing for investors?

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