In recent years, a common paradigm in the
investment landscape has been to chose a
company that has the potential of capturing
and maximizing marketshare within a given
industry. This is a valid criteria of course
however, in the midst of the Internet Craze,
rarely did anyone ask the questions that
needed to be asked.
- What is the marketcap
of the industry?
- Who are the major
competitors and what impact does the competition
have on the bottom line?
- What is the core competency
of the business and the fundamental focus?
- What are the resources
needed to reach profitability? How long
will it take? Are these projections realistic
within the growth or decline of consumer
- What are the "deal
breakers" of the business model that
would cause it to fail?
- Is there an infrastructure
plan and how long will it take to implement?
- Is a "one time"
investment needed to just get "up
and running" or is the success of
the plan also dependant on additional
funding to keep it afloat?
- Is the plan based
on a real demand or a created one?
There are many more questions that need
to be asked of any business venture. The
companies that have objectively researched
these important issues and have created
realistic strategic plans are those that
will have the greatest chance at success.
What about vision? This is vital to all
businesses and rarely do the founders of
a company lack some sort of vision. The
real question is, "Is the vision realistic
within the constraints of the market?"
Everyone can dream. Some can get others
to see that dream. Even fewer have the ability
to turn that dream into reality.
Many entrepenuers fail to realize that
investors don't want to just put their money
into a dream, they want to put their
money into something what will make them
more money! Investing in a company is
a calculated risk. It is an investment in
a leader, a team, a vision, and a plan.
They are counting on that company being
able to control that destiny enough to realize
Sometimes the best business plans are the
ones that aren't trying to just "sell
the sizzle". Though technology breakthroughs
can be profitable, they are also very costly,
time intensive, and high risk. In today's
economy, there is a lot of money that can
be made with a solid business plan based
on proven product demand and strategic marketing
G&H Internet Consulting has spent the
past four years studying the economy and
industry trends. We knew that the first
wave of Internet and technology based companies
were going to crumple under the weight of
its own hype. It happened. We also know
that there will be a second wave of successful
companies that will span the next decade.
It will be built by companies with strong
management, unwaivering resolve, and piercing
The Time is at Hand!
The Iron is Hot! It is Time to Strike!
G&H Internet Consulting