Starting a new business

Question 1

What are the two steps of a new business?

Answer 1

1. Investigate the market

2. Analyse the company from a venture capitalist point of view

Question 2

Investigate the market (4)

Answer 2

1. Who is our competition?
2. What market share does each competitor have?
3. How do competitors’ products differ from ours?
4. Are there any barriers to entry or exit?

Question 3

Venture capitalist view (6)

Answer 3

1. Management
2. Market and strategic plans
3. Distribution channels
4. Products and services
5. Customers
6. Finance

Question 4

Management (4)

Answer 4

1. How experienced is the management team?
2. What are its core competencies?
3. Have they worked together before?
4. Is there an advisory board?

Question 5

Market and strategic plans (3)

Answer 5

1. What are the barriers to entering this market?
2. Who are the major players and what are their respective market shares?
3. What will the competitive response be?

Question 6

Distribution channels (1)

Answer 6

1. Which an how many distribution channels can we rely on?

Question 7

Products and services (4)

Answer 7

1. What is the product, service or technology?
2. What is the competitive edge?
3. What are the disadvantages?
4. Is the technology proprietary?

Question 8

Customers (3)

Answer 8

1. Who are the customers?
2. How can we best reach them?
3. How can we ensure that we retain them?

Question 9

Finance (3)

Answer 9

1. How is the project being funded?
2. What is the best allocation of funds?
3. Can we support the debt under various economic conditions?