Evaluating The Business Plan

tcl evluon of the
new business concept
t n erly stge wll
llow n entrepreneur to dscover nd ddress ny flws n the
business plan
before
t goes nto the producton stge.

The frst step n evlung new business proposal s by subjectng the busness
proposl to mrket reserch. n entrepreneur of smll busness compny cn seek
the help of fmly nd n mrket reserch. They re often the frst soundng
bord for busness proposl.

fter ths, n
entrepreneur needs
to expose the busness proposl to lrger
udence usully the potentl trget udence. t ths stge, the entrepreneur
cn twek the
new business concept
nd correct ny flws tht my exst n the desgn
nd mrketng strtegy.

But mrket reserch s just one spect n evlung busness. Once the mrket
reserch comes through postvely, n entrepreneur needs to step bck nd evlute
whether he or she s relly nterested nd commtted n pursung the busness.

n entrepreneur needs to evlute the busness proposl nd estmte where the product
needs to be plced n the mrket plce? Whether the product wll be hold the vlue-cpture
power n the ndustry? nd, Whether the frm wll be dfferentted nd sty tht
wy?

Tkng tme off to nswer these questons s mpetrve to the of the proposed
busness concept. Erly stge fnncng cn be very frustrng nd tme consumng
nd unless the entrepreneur s relly commtted to the product nd the cuse, there
s much chnce tht the busness pln s gong to be ful n the open
mrket.

prt from mrket reserch, n entrepreneur lso needs to do erly-stge fnncl
nlyses of the busness proposl, defne the development pth necessry nd guge
the nvestor ttrctveness of the busness proposl.

Recognzng the tsks tht must be performed n order to develop the busness proposl
s lso tcl for settng up busness. f the tsks re followed by
substntl busness, they cn ete fnncl burden tht wll brng down the

new business venture’s
chnce of proft.

Evlung the busness proposl s essentl to fnd fundng from
angel investors

nd
venture capitalists
. No nvestor wll be wllng to nvest n product tht
does even potentl for .

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