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3.10 Action Items
In this Step, you looked at the analysis and financial valuations you
will need to do to demonstrate your company's investment potential.
Building on your financial forecasts, you've got to make the financial
case that your company can return the levels of investment a risk capital
investor is looking for. You've also got to do a solid analysis of your
company and the market it operates in. The investor will be looking
for any advantages and opportunities your firm may have; it's up to
you to demonstrate them.
The following checklist will help you to:
- assess your understanding of the ideas covered in this Step;
- gauge your progress; and
- plan your company's approach.
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Responsibility? |
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1. Review the key conditions investors are looking for.
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2. Conduct a situation analysis of your company and its environment.
- Examine your internal operations to identify strengths and weaknesses.
- Consider all key operational areas:
- management
- marketing
- production/manufacturing
- finance
- human resources
- distribution/delivery
- research and development
- Examine your business environment to identify opportunities and threats.
- Consider:
- economic environment
- industry characteristics
- market dynamics
- competitive climate
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3. Determine the value of your business for purposes of attracting
investors.
- Calculate the discounted cash flow value.
- Determine the investor's expected rate of return.
- Consider the equity share you'll be selling.
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4. Determine the exit value for the type of exit strategy you've
chosen.
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