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DoestheventureofferfinancialreturnsthatjustifyinvestmentHaveyoucomparedthemeritsoflicensingtoventuring3.Haveyousecuredinitialfundingtofundbusinessstart-upactivitiesHaveyoudevelopedastrategicbusinessplanHaveyoufinalizedtheintellectualpropertyrequirementsHaveyoufinalizedthebusinessorganizationalstructureHaveyouselectedaboardofdirectorsoradvisoryteamHaveyoufinalizedagreementsonanyconcurrentbreak-throughHaveyoudevelopedaformalfinancialplanthatincludesthestrategyandtimingofpresentandfuturefundingroundsHaveyoudevelopedadetailedbusinessplanforproductdevelopmentincludingobjectivesschedulesmilestonesandallocationsoftherequiredfinancialandhumanresourcesCanyouensurethatmanagementhascriticalexperienceandexpertiseintechnologyproductmarketandbusinessdevelopmentHaveyouformedacohesivecommercializationteamdesignmanufacturingmarketingmanagement4.HaveyouinitiatedbusinessactivitiesHaveyouestablishedhiringcriteriaHaveyouhiredandtrainedcorepersonnelHaveyouexecutedcontractsHaveyouarrangedforthenextstageoffinancingDoyouconveneregularboardofdirectormeetingsHaveyoudevelopedabusinesspolicyandproceduremanualHaveyouestablishedcontrolmechanismsforcashexpendituresthatcorrespondwiththebusinessplanHaveyouestablishedadynamicprocessforstrategicandtacticalplanningfortheenterprise5.Areyouengagedinfull-scaleproductionHaveyouarrangedforfull-scaleproductionfinancingHaveyouinstitutionalizedacorporatevisionmissionandpolicyDoyouhaveaprocesstomonitorbusinesstrendsandpracticesCanyouidentifyopportunitiesandthreatstoenterpriseprofits6.AreyouoptimizingthecompanysprofitpotentialHaveyouimplementedaninternalcompanydiagnosticprocessDoyouprovidecontinuingeducationandtrainingopportunitiesDoyouexplorealternatemanagementtechnologiesDoyoureinvestprofitsDoyoumonitorproductlifecyclesintheenterpriseportfolioDoyoumonitoropportunitiesandthreatstoenterpriseprofitsCanyouidentifyopportunitiesandthreatstoenterpriseprofitsDoyouconductstrategicandtacticalplanningfortheenterpriseInvestmentisallaboutriskandrewardthegreatertheriskthegreaterthereward.Investorsaretypicallyhighnetworthindividualswhohaveanappetiteforriskandarewillingtoinvestinqualifieddealsthathavethepotentialforexceptionalratesofreturn.Howeverinvestorsarenotgamblersandtheyuseagreatdegreeofduediligenceinanalyzingadealtodetermineifitfallswithintheirtoleranceforrisk.ThusitisadvisableforanentrepreneurtoknowHowmuchriskisintheirbusinessventureWhichareasoftheirbusinessmodeldemonstratethemostriskDoestheirbusinessmodelmeetinvestorstoleranceforriskTheRiskReadinessSurveyanalyzesfivekeyriskfactorsassociatedwiththeinvestorsinvestmentdecisioncriteria.Thefiveriskareasareexecutionproductmarketmanagementandfinance.Thesurveylistsfivekeyinvestorquestionsineachofthefivekeyriskareasforatotalof25keyinvestorquestions.Thequestionsandthecategoriesareweightedbaseduponinvestorimportance.Allnewventureopportunitiesdemonstrateacertainamountofrisksomemorethanothers.Thistoolidentifiestheamountofriskremovedfromtheopportunitybaseduponthecircumstancesrequirementsandfeaturesofthebusinessmodel.ThepurposeoftheRiskReadinessSurveyistodeterminehowmuchriskhasbeenremovedfromeachofthefiveriskfactorsandoverallfortheproposedventureopportunity.TheresultsoftheRiskReadinessSurveyprovidecriteriafortheGoldsmithVentureValuationMethod.www.technologyalliance.ms31RiskReadinessSurveyDescriptionPurpose