Evaluating a business plan
Monday, 22 August 2016 | Admin
In evaluating the viability of a business plan for a new technology company, investors, banks and State agencies interested in supporting the proposal place an emphasis on specific elements of the plan, looking for the following assurances:
However, having considered the viability of the venture, the key factors from an investor’s viewpoint in reaching a decision on whether to invest most likely rank in the following order of importance:
This order of emphasis, when it comes to making an investment decision, is simply based on the fact that, no matter how good the technology and business opportunity appears to be, the venture will not be achievable if the right people are not at the helm. So, to protect their investment, investors want the assurance of a capable team in place. Investors also know that the company will go through different phases and, therefore, expect that certain management positions also will change as appropriate to the stage of the company, so that throughout the course of the plan, the team consistently comprises the appropriate strengths and capabilities.
Extracted from INTELLECTUAL PROPERTY: FROM CREATION TO COMMERCIALISATION: A PRACTICAL GUIDE FOR INNOVATORS & RESEARCHERS by John P Mac Manus.