Should we work for this company or not? This is one of our biggest challenges. We are not dragons we don’t have capital all we have is our time and skills. We have to address so many concerns and answer so many questions. Before we can determine who to work with we have to answer so many questions.
What is the best formula to determine the potential of business?
How do you know if there is market potential?
Can you determine a rate of return?. Does the business have enough cash flow ?
Will the company survive a economic depreciation?
This is our method for assessing a business, its resources, and its environment. We ask ourselves these questions to we better understand the business, its market, and determine potential growth opportunities.
When we conduct an analysis we work on discovering what the company does well, how it can be improved and if all opportunities are being capitalized. If we find opportunity, we then look at the personalities of the owner and previous track record.
More often than no we find a great product with potential but poor business structure and ego. Like they say a strong company needs a good foundation but it also needs a strong roof. You can have great processes and still fail.
When you analyse these 4 main influencers growth and potential you quickly become clear. You will know if you have a winner or a loser!
Once we complete this analysis it provides us with the insight to identify core activities to improve. We then know if we should walk away or join the team.
Follow us to read about who we choose and who we drop.