跳至主要内容

How to Evaluate a Business Plan

Whether you're an investor, an entrepreneur or a business skills teacher, you'll be exposed to a wide variety of business plans and should have a solid, somewhat standard approach to evaluating each of them. Analyze each section individually, and then look at the plan as a whole to determine the viability of the business and the likelihood of its success in the manner proposed. Also consider the writing skills and attention to detail that went into formulating the plan.

Examine the company strategy for capturing its market. The plan must clearly describe the problem the company is solving or need it is meeting for customers, and then propose a solution. Closely examine the alignment between problem and solution. Will the company actually address that need? This evaluation must take into account the product or service being offered, the operational capacity and efficiency with which the business actually can produce its product, and the quality of the proposed marketing efforts.

Evaluate the market opportunity. It should be growing at least 10 percent per year and have a substantial potential relative to the size of the business and investment. For example, a small company seeking an investment of $50,000 should see a potential market of $5 million. The larger the potential market and the faster it is growing, the better. Look to the exhibits and appendices to ensure that the business actually has done the necessary market research and can back up any claims.

Understand the business environment. The business plan should describe the competitive landscape in which the company operates, preferably by referencing Porter's 5 Forces or another well-established tool. Look for detailed breakdowns and analyses of each of it competitors, and of how the company is different and better than the competition in a particular niche. This section should include the regulatory environment and mention any costs or necessary delays associated with regulations.

Read the executive summary. This should be a concise "elevator pitch," not a summary of the business plan. In one or two pages, it should convey the market opportunity and the uniquely compelling features of the business that will help it meet that opportunity. The executive summary should excite you and make you want to turn to the next page. If it doesn't, the entrepreneur might lack marketing or writing skills.

Ensure that the financial projections are both promising and realistic. Most entrepreneurs vastly overstate their company's potential, starting with the market size and market share. Financial figures should be based on historical data if available, or very conservative projections if the company is not yet profitable. Entrepreneurs that project capturing 20 percent market share in the first two years probably have unrealistic expectations.

Look for experience, integrity and passion in the executive team. Bios and brief highlights of each executive's strengths and expertise should accompany standard business information such as headquarters and corporate structure. The company should have experienced advisers, either formally or informally. It is paramount that the principals involved in the business convey their passion and drive toward success with this project. If the founders haven't invested their own capital into the business, or plan on keeping their "day jobs" while running the business, they might lack faith in the project.

Difficulty: Moderate

评论

此博客中的热门博文

How to Design a Store Front Sign

In this Article we will talk about designing a store front for a business. What color or size should your Letters & designs be? What to put on your sign and why?, then be ready to Get in touch with sign people and get your best deal. Large lettering with out a front sign could save you time and money Do your products have a special shape or color to emulate on your sign? Kodak is always in yellow and black, Coca-Cola white on red, Etc. Muffler places, have a sign in the shape of a muffler. your phone number on the store front some place, but not on the identification sign, (door, or window) Your Product & logos can be arranged on the front sign, or window. Not on the Pole sign, Store hours & phone number could fit in your design and by using the product color, it could add product recognition & enhance your design. Suppliers may provide plenty of advert

music forum (zt)

24. moonlight - ≡ Sound Of Nature ≡ -     15. Tone Quebec Network 17.Ukoo http://www.hispeed.com.cn/Forum/LoadForum.asp?Foru m / a> http://bbs.dd81.com/index.php 30. Jazz pawnshop http://www.sogua.com/ 6. Lyrics 吾爱 http://www.inkui.com Reading of the singer in mind 2. Hyun tone http://d.sogou.com/ http://www.beihai365.com/bbs/forumdisplay.php?f/a> 20. Left Bank • Teana http://bbs.flamesky.com/ 8. Sogou sogou- 25.U Shadow 吾爱 sound waves 4. Need 14.HDCD http://www.commus.com/ 29, Buddhist music, do not know the name of the http://www.itpub.net/forum79.html http://bbs.kugoo.com/index.asp http://bbs.uying.com/176/Index.aspx http://board.verycd.com/ http://board.verycd.com/f8.html 13.MP3 barrage http://bbs.51lrc.com/index.asp?board/a> A pleasant song - "Dancing circulation" 19.Verycd of http://bbs.breezecn.com/ http://www.mp4cn.com/2008/index.html Sound of Music Forum, http://www.jazzsky.com/lb/cgi-bin/leobbs.cgi http://www.luopo.co

How to Cut Down on Small Business Advertising Expenses

Small business advertising is the greatest problem that the entrepreneurs face. If you have a small business then you may be facing the same problem. This problem can be easily cured with the help of a few steps. Remember that cutting down the expenses does not mean damaging the business. You will have to make sure that the business keeps running at its best and your expenses cut down campaign do not disturb the running of the business. This is the difficult part of this campaign. Most of the people can easily cut down the advertisement expenses but then they will sacrifice the business. This is not the tight course. Market is very important to you. You should research your market and then target it. It will reduce the budget by reducing the number of advertisement campaign that you are running. You may be running campaigns outside your native market. Remember that targeted advertisement is the most essential thing. You may wa