|What you might expect an
Investor to ask:
new technology is desirable and would seem even necessary. It is important
however to consider several factors, as they would be considered by the
The fact you feel that your project is the best thing since sliced
bread, or a viable solution to a problematic issue, will not replace the need
to answer these questions (not necessarily in
1. Is the product viable (Some outside Validation would be best)?
2. What is the projects Market Potential (In today's
marketplace it should be 100MM+)
3. The Management Team (At
times, have ok ideas; with great teams draw investors).
THE COMPANY OFFERS
addition to a competent management team and the other topics covered in this
directory, fundamentally, there must be an appropriate market segment for the
company. There needs to be an identification of a market segment that the company
can compete in advantageously.
first step should be an identification of what the company will have to offer
and how it will offer it's products or services in a way that will induce
customers to buy. The simple statement that "the company only needs to gain
one or two percent of a major market" is a sure statement that failure is a
high possibility because knowledge of the market is lacking.
THE MARKET OR NICHE
of a market segment that offers the company the opportunity to provide either a
better or unique product or service or better method of marketing should be the
direction for the company. When the segment has had preliminary identification,
detail on the segment can be collected to test the marketing and product plans.
Experience in a market is a good beginning to direct the market research, but
frequently not sufficient to answer the questions that will improve the chances
SOURCES OR RESOURCES
detail can be collected from a variety of sources. Business sources, such as,
Associations that are a part of the market segment, libraries, telephone books,
and telephone calls to potential customers can all help to clarify the questions
to be answered. Are we proposing to do something that will induce potential
customers to buy from us and the competition? Marketing professionals with
appropriate experience can be of great assistance in both phrasing the questions
to be asked and locating the answers.
of the information to be collected should lead to a convincing knowledge of the
size of the market segment, its rate of growth, the competition, methods of
marketing, and distribution currently used. The advantages of the company's
products, services, and proposed marketing and distribution should clearly follow
from the information developed in the market research. If outside funding is
contemplated, a knowledge of the type of information of particular interest to
the funding source should be identified.