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50 Questions Your
ENTREPRENEURS

Business Plan Should

Answer  WAT C H L I S T


CONTRIBUTOR PUBLISHED
David Evanson DEC 4, 2015 10:02AM EST


S adly, most investors don't read business plans.

However, writing one is the only way you will be

able to answer the following 50 questions which an

investor will ask you:


1. What is the price of your product or service and why?

2. How much capital is required to execute your business plan?

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3. How much is the company is worth? Markets

US Markets
4. What existing products/services does your company provide?

Technology

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6. On a summary basis, what is the historical financial in the Buy Zone
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performance of the company (even if, and perhaps particularly

if, you have no revenues)?

7. On a summary basis, what is the projected financial

performance of the company?

8. What new products/services are being developed and when

will they be ready for market?

9. What is the size of the market for your product in dollars?

10. What is the size of the market in terms of units?

11. How has the market for the product/service changed over

the past 5 years and why?

12. How do you anticipate it will change going forward?

13. At what rate is the market for your product growing?

14. Is the competition highly concentrated or highly

fragmented?

15. What is your distribution channel and why is it the best

one?

16. On a broad level, what are the elements of your marketing

strategy?

17. What does it cost to generate a lead, and what is the ratio

of leads to sales?

18. What funding is being allocated to new product

development from the financing and from ongoing operations?

19. How many potential customers have you talked to?

20. What are the gross and margins on your product/service?

Why are they superior or inferior to a competitor?

21. What is your assumptions on the bad debt and collection

period for outstanding receivables?

22. What are your working capital needs once sales take off and

how will these needs be addressed?

23. What will happen to gross and operating margins as sales

rise and why?

24. What percentage of your sales are recurring?

25. Who are your top five executives and what is their

professional and educational background?

26. What regulatory or legal threats are present?

27. Are there international markets for this product and is the

company positioned to take advantage of them?

28. Who is the largest competitor in your industry?

29. What criteria will be used to choose locations for

geographic expansion?

30. How will you get this product into mass market distribution

channels?

31. Is the product/service patented?

32. Who are your suppliers and or vendors?

33. Do you have more than one for each supplier/vendor of

your basic raw materials or services?

34. What are your payment terms with vendors or suppliers?

35. What will cause gross and operating margins to improve as

volume increases or decreases?

36. Where is the company located and how many square feet

does it lease or own?

37. What is the length of the sales cycle?

38. How did you estimate returns and allowances?

39. How are sales personnel compensated? Incentivized?

40. What, as a percentage of sales, is the industry norm for R&D

expenditures?

41. What is the earnings multiple of public companies like

yours?

42. What is your immediate marketing objectives?

43. Does the company have a board of directors or advisors?

44. What is the ownership structure of the company? Who else

is an owner?

45. How has the company been financed to date? What other

financial transactions have occurred in the past?

46. Has the product generated any publicity? Where?

47. How old are the current liabilities on the balance sheet?

48. Who has prepared the historical financial statements and

have they been compiled, reviewed or audited?

49. Is there any cyclically in sales?

50. What are the competitive advantages of your products?

The views and opinions expressed herein are the views and

opinions of the author and do not necessarily reflect those of

Nasdaq, Inc.

David Evanson


David R. Evanson has more

than 30 years working in the

media, on Wall Street and in

media relations. He has

worked with investment

banks, asset managers,

private equity investors and

institutional brokers on a

variety of marketing and

communications challenges.

David is also a recognized

financial writer, having

authored five books on

finance and economics, and

articles in Barron’s, Forbes,

Investment Dealers’ Digest,

On Wall Street, Financial

Planning and Entrepreneur,

among others. David brings

to the table a well-developed

understanding of the capital

markets, investments and

corporate finance, and a

talent for creating targeted

media communications

programs for financial

services providers.

R E A D DAV I D' S B I O 

1. Free Sample of Business 6. Business Partnership

2. Small Business Loans 7. Business Name Search

3. Best Businesses to Start 8. Small Business Grants

4. Funds to Start a Business 9. Small Business Budget

5. Business Startup Grants 10. Business Continuity Plan

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