HRSR MEMORANDUM 03-04-1996 - Laserfiche WebLink

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SECTION II - • Describe the structure of the market INFORMATION FOR APPLICANTS niche for your product: share of J the overall market you intend to capture " PREPARATION CHECKLIST (as a percentage), size of the market niche,growth rate for the last 5-10 Below is a checklist of information a com- ."1 parry should have when requesting financing years,projected growth rate for the from the Fund. Based on this information, next 5-10 years, historic gross and net ' i the Fund will conduct a preliminary profit margin, and sensitivity to changes :` p ary evalua- in price and costs. `- tion of your business opportunity. Much of _: 4 y the following information is incitided in a sound business plan. • Describe the competitive environment of the market number, size, r. If you need assistance in developing this and distribution of the companies and p- information,we recommend contacting a local business development specialist or a their products that will compete with business advisor. your company and products. How do M they deliver their product to the customers?how do they differentiate ,p 1. MANAGEMENT TEAM ASSESSMENT between themselves?How will you position your company and products so An attractive business opportunity has a that customers can differentiate you a _' team in place with experience and compli- from the competition mentary expertise. • Provide detailed resumes of • Describe your customer. demographics, location, etc. How will you �' management and a description of reach them?What are the key factors expertise available to your company they consider in making buying 7 from members of the board of directors and people who serve as advisors. decisions?How quickly will the Highlight experience and skills relevant Ft customers receive a payback from their to your business. investment (purchase) in your product? How do you measure this payback? • List the strengths and weaknesses of 'r • Describe the unique features of your the management team and an g%1 explanation of how any identified product(s), unique technology, weaknesses will be addressed. product life,value to the customer. (If available,provide drawings, brochures, 2. MARKET ASSESSMENT etc.) The best opportunities typically occur in • What are the percentages of the total markets that are growing,where a market cost of the project that are the niche can be identified, and where cus- tomershave a strong need or desire for the fixed costs of production, marketing, product. distribution, sales,and product development and R&D? • Describe the overall market structure: • What are the percentages of the total size, growth rate for the last 5- cost of the product that are the 10 years, projected growth rate for the variable costs of production, marketing, II next 5 years, historic gross and net distribution, sales, and product Page profit margin, and sensitivity to changes development and R& D? in price and costs. :.:.::::::..: 4