The
core of the process is the “Opportunity”. Ideas of
would-be entrepreneurs cannot attract
investors during the due diligence process if those
would-be entrepreneurs cannot identify the
exact prospective customers and markets. Opportunity can be explained with market demand
(market share and growth potential, ability to reach the customer), market structure and size
(emerging segments or fragmented segments, proprietary barrier to entry), margin analysis
(gross margin percentage, competitive capital requirement, break even point, economic value
added). Resources include the financial resources
, assets, creative people, and business plan.
Quality entrepreneurs prefer to minimize and control rather than to maximize and own. The
“Bootstrapping” is the style of entrepreneurs starting the business.