People, ideas, and money
Friday, February 22, 2008 | Red Is this Spam?When evaluating a prospective investment in a new business, the first question I would ask is who will be in charge. Does the CEO have the ability, desire, and experience to make the business not only survive but thrive. Can he/she start a business from its infancy and grow it into a successful company?
Second, what is the business plan. How is the new company going to compete with other businesses or what is the new niche that would provide an opportunity for a new company to be successful. How is the company going to place itself in a leadership position. Will it provide premium service or products or will price be used to gain market share.
Third, what will the capital requirements be to carry the company until it makes a profit. Will the company be raising money by just selling stock or is there a line of credit available. What is the margin of safety in case the company does not meet the expected growth and profit.
