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Posts tagged Evaluate
How to Evaluate the Financial Power of Any Business Idea – in 5 Easy Steps
Aug 25th
Once you get an inkling of a business idea in your head, it is very tempting to jump right into investing your time and money.
But, to help you avoid putting your time and money behind the wrong idea, I’ve developed a simple 5-step process for evaluating the financial potential of your business idea.
I use a real-world example to illustrate how to complete the process – my friend Jim, an expert in corporate strategic planning who actually used my process before deciding which way to take his new consulting business.
The Challenge: How to make a living from knowledge of strategic planning.
Step One – Define the need to be satisfied or problem to be solved.
From his experience as a member of several corporate strategic planning committees, Jim had learned that many companies end up dissatisfied with the outcome of their planning because they improperly define the key issues, select the wrong committee members, and don’t show discipline in implementing their results.
Step Two – Determine the different revenue-producing opportunities that arise from solving the identified need/problem.
Jim used his experience, personal interests and some research to identify three possible initial revenue-producing opportunities:
#1 – Write a strategic planning workbook.
#2 – Create and market a one-day strategic planning workshop.
#3 – Sell strategic planning consultation.
Step Three: Part One – Determine the resources* required to bring each opportunity to life.
#1 – Writing Workbook
How to evaluate your business’ financing needs
Jul 31st
Business financing should be carefully planned long before a particular project takes place. The success and longevity of a business by definition will depend on its carefully chosen Financial Structure. Let’s do it one step at the time.
First you need to know exactly what you are planning to do:
Starting a new business?
Exploring opportunities for an existing business?
Buying a competitor?
The second question you should ask yourself:
Do you have enough capital or you need to obtain an additional financing for your project?
If you require financing and you want it to fit into your business structure, you need the right financing at the right time.
In order to appraise your business’s financing needs ask yourself the following questions before seeking financial assistance:
How soon do you need the money?
In order to get the best possible terms for you financing it is always a good idea not to do it in a hurry, to have a time cushion.
Have you evaluated you business’ risk?
The more risk you have the less favorable terms or financing you will get. If you do not have enough knowledge on this topic, you can hire a financial professional to do that.
What is your business development stage?
Start ups are more vulnerable and need more cash than established businesses.
Q. What is the purpose of this loan?
