Evaluation Questions

 Here are some exploration questions to ask about your business while writing the executive summary and complete business plan.

Business Purpose 

• Is the business opportunity realistic and presented clearly?
• Why does the opportunity exist and why is now the time to take advantage of it?
  
• What is the exit strategy?
• Is the team stable and committed?

Product/Service 

• What is provided and how will the business work to provide it?
• What steps will you take to make your initial sales?
• How will you protect your property and advantage?

Market

• What is the market size? Trends past and future?
• What has been done to understand the customer?
• Has the team tested their product(s) or service(s) in the market?
• What is the entry marketing plan - customers, marketing and sales effort, products (number of units, sales dollars), growth rate (three year projection).
  
• What is the selling price?
• Who are the competitors (location, size, products, strengths, weaknesses, age, sales tactics, pricing, financials) and is the business capable of defending itself?
  
• Is the consumer educated about your service or product? If not, what would it take to do so?
  
• How long will it take to bring the product(s) or service(s) to market?

Management

• Does the team have a management structure that will be successful?
• What is the commitment level of the founders and what risks or investments have they made?
  
• Will the founders create obstacles to success?
• Are the titles, responsibilities, salaries, and ownership of founders and team members clear?

Finances

• How much capital is required and is that estimate well founded?
• Does the Business Plan clearly outline the spending of any capital raised?
• What are the expenses? Are they in line with sales and designed to advance   the company rather than enrich the founders?
  
• How long until the company breaks even? Until positive cash flow?