Business Viability Checklist
Convinced your
business plan is a sure-fire winner? Maybe so. But even the best ideas
have to be fully vetted and justified before they draw investment
capital. So, we strongly advise you to review our
Business Viability Checklist to ensure you've got
everything covered.
Management
Checklist
- Do
all members of your management team possess the necessary education,
skills and experience?
- Does
each member have clearly defined and delineated roles and
responsibilities?
- Is
the team complete or are you waiting to fill several key positions
later?
- Has
everyone committed full-time to the business? If not, when will they?
Organizational
Checklist
- Have
you identified, sourced and budgeted for
all of the operational systems (e,g, accounting, finance, HR,
etc.)
you will need need to run the business?
- Will
you depend upon distributor, reseller, OEM,
or other kinds of business partnerships? If so, have you developed a
set of "ideal partner profiles" and developed a list of
potential
targets?
- Have
you completed a SWOT
(Strengths, Weaknesses, Opportunities and Threats) analysis?
Market
Readiness Checklist
- Have you analyzed all
of the
relevant market research to prove out your market share and revenue
assumptions?
- Do you
have a comprehensive and detailed plan for building
and maintaining market share?
- Have you accounted for
the key
trends driving the market (e.g., consolidation, regulatory pressures).
- Have you compared your
pricing
model to industry norms? Is it competitive?
Sales
Readiness Checklist
- Have you
developed a detailed profile of your target customer and a target list
of prospects?
- Have you
identified all of the stages and of the selling cycle and their
duration? Is this fully reflected in your forecast and revenue
assumptions?
- Will your
sales compensation plan motivate and reward high achievers?
Is it competitive with other companies in your space?
Competitor
Checklist
- Do you have a market
entry
advantage compared to your potential competitors. For example, do you
own technology that other companies would have to develop before they
can compete with you?
- Have
you identified all of your key competitors and how their strengths and
weaknesses compare to yours?
- Have competitors
formed strategic
partnerships with companies you're targeting as key suppliers or
partners?
Product
Readiness Checklist
- Do you have a working
product or
are you still in the concept stage?
- Do
you own - or have unfettered access to - the
underlying technologies?
- What
industry/government
certifications/licenses must you acquire before offering the product
commercially? Have you developed a plan and budget for this?
- Is
your product scalable? If so, have you
identified all of the associated scaling factors and dependencies (e.g.
network throughput, computing power, etc.) and how this will affect
your cost structure and margins?.
Finances
and Revenue Checklist
- Have
you created a realistic Balance Sheet, Income Statement and Cash Flow
Statement?
- Have
you identified all of the human capital and operational costs
associated with your growth forecast? How will this affect your margins?
- Do
your financial sheets match up top-down and bottom-up?
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