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1. What real estate, machinery, equipment, technology, and
systems will be required to support the enterprise now and in the future?
2. Are the above mentioned at a price you can afford?
3. How will you pay for them (mentioned above)?
4. Is your proposed per-item selling price at each market level realistic?
5. Does your intended pricing accommodate the price tolerances of your intended
consumers?
6. What kind of per item “gross profit margin” (e.g. the difference between
the cost of the item and its sales price) does your pricing allow?
7. Is the margin between the selling price to your buyer (e.g. the wholesaler or
retailer) and the price to the ultimate consumer sufficient to appropriately
compensate the external distribution channels you’ll require?
8. Will everyone in the distribution chain earn a return sufficient to keep them
involved?
9. What is your pricing strategy?
10. Is your pricing strategy flexible enough to counter competition?
11. What is your break-even point in terms of the volume of items that must be
sold?
12. How many items must be sold, in what period of time, to get you a cash flow
break-even point?
13. How much cash will have to be invested in your venture to
achieve a level of operation that produces break-even sales levels?
14. Will you receive reasonable return on investments?
15. Do you have enough cash available to get you to that break-even point and
provide you with reasonable standard of living in the process?
16. How much time will pass, on average, between the point at which you sell an
item and the point at which you collect the cash from sale?
17. What will you do if purchasers don’t pay as requested?
18. How will this affect your projected cash flow?
19. What percent of your personal liquid net worth and credit capacity will be
obligated at the point at which you start to make sales?
20. What will your contingent liabilities be at that point?
21. How do you expect to fund operating expansion and to acquire needed capital
equipment?
22. Will the nature of your business appeal to investors and lenders?
23. What will it cost you in terms of interest expense, equity give-up,
covenants, restrictions, etc.?
24. What will be the internal rte of return generated by the business (e.g.the
interest rate that is required to present-value both cash inflows and cash
outflows to an equal amount or a “zero-sum gain”)?
25. What financial or personal give-ups will you experience?
26. Is this the best use of your time?
27. How will you eventually exit from this business?
28. If someone is selling a business consider this, why are they selling?
29. What evidence of past performance can they give you?
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