Use the questions below to analyse the profile and consider ways in which the venture could be re-configured to improve its prospects.
Is the profile aggressive: a large profile showing greater risk, higher reward, bigger investment, larger-scale change and medium to longer timescales? This will require a high level of entrepreneurial management capability. Do you – or your team – possess this?
Is the profile defensive: a tightly grouped profile with lower degrees of investment, risk, reward, change and short to medium timescales? This may suggest an over-cautious approach which will provide modest rewards. How can its potential be enhanced?
Can the investment required be reduced, or more of it obtained from other investors?
Is it an attractive investment, and to what type of investor? Will you invest your own money?
What factors give rise to the degree of risk, and can any of these be reduced, for example through an incremental approach to finding ‘what works’ such as market or product testing, research, planning, finding people with the right experience?
Is the projected return proportionate to the degree of risk?
Does the impact of change in the venture increase its risk, and if so can this be reduced without detracting from the venture's competitive advantage?
Can the venture achieve greater results through applying more innovative approaches?
Can more value-adding spin-off services be created from the venture to enhance its earnings and lifetime?
Can the timescales be altered, for example to bring forward the start of earnings, and to extend the earning lifetime of the venture?
Can the value of the venture be increased over its lifetime?
