It is a great advantage to have a carefully prepared business plan while seeking capital. Below we have listed a number of areas which should be considered:
- A unique concept or idea that meets an unmet consumer need.
- Clear intellectual property rights strategy and/or position. How difficult is the product/business model to copy for competitors? How is it protected? Does the company have freedom to operate?
- A target market or a proven niche product with high growth potential. Which value is created with the clients, costumers and users? How severe is the competition on the market? How high are the entry barriers on the market? This must be clarified and defined.
- An experienced and well-balanced management team with a proven track record. This is essential as the management team will be in charge of implementing the business plan.
- A sufficient growth potential in the company which in practice means a sufficiently large market and that this can be achieved with a given investment.
- The company must be able to create a positive cash flow within the foreseeable future, normally 2-7 years.
- Potential exit routes identified at the time of investment. If EnergiMidt Development cannot exit the investment and thus not realize our profit, the investment is not interesting.
- A realistic and viable plan for the development of the company is essential.
- Risk assessment. Identifying the major risks facing the company.
The above must be documented in the business plan.
Normally, EnergiMidt Development invests in companies which are close to a market introduction.