21 June 2010

Questions for Entrepreneurs to Startup a Business

This is a very important business self assessment for all potential entrepreneurs who wish to own a business. I was found these questions in The Malaysian Life Sciences Capital Fund (MLSCF) official website. And then, I feel these question are very useful and decide to share them in my blog.

Questions for Entrepreneurs

The Market
  • Is there a need?
  • Who cares?
  • Have the market segments been identified and are they well developed?
  • Is the market large, and how fast will it grow?
  • Can the company establish a defensible market position?
  • Is there or will there be formidable competition?
  • How long is the sales cycle?
The Organization
  • Is the team passionate about the opportunity?
  • Does the CEO have a successful track record?
  • If necessary, can the company attract a new CEO?
  • Are the founders experienced and respected in their industries?
  • What are the founder's strengths and weaknesses?
  • Is the team innovative, experienced, and success-oriented?
  • Is the team capable of building a large company?
  • Is the team open-minded?
  • Does the team have an in-depth knowledge of the market?
Products and Technology
  • Is the product a fast-follower to existing solutions or a "brave new world" solution?
  • Is the concept unique?
  • Are the products differentiated?
  • How does the technology address a market need?
  • Does the company have a patent or other proprietary position?
  • Is the engineering plan explicit and can the engineering team execute?
  • Is the technology realistic and feasible?
  • Do the products/services have a sustainable competitive advantage?
  • What are the company's capital needs in this financing, and over the life of the company?
  • Can the company be financed in the future?
  • What are the paths to liquidity and what is the timing?
  • What are valuations for comparable companies?
  • What is the capital structure of the company?
  • Are the numbers realistic and achievable?
The Plan
  • Is the strategy well conceived?
  • Is the strategy clearly articulated?
  • What business is the company in? Is its mission explicit?
  • Does the company have a roadmap to profitability?
  • How large can the company become?
  • What are the value creating events? How much capital will it take to achieve them?
Risk Assessment
  • What are the major risks?
  • What is the magnitude of the risks?
  • What is the risk/reward ratio?
  • When and how will each of these risks be resolved?
(resource: http://www.mlscf.com/Resources.htm)

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