No one person is likely to have expertise in all the areas required to make a thorough evaluation of business prospects. You need to bring advisors on board, early on, whether as part-time consultants or as employees, to provide you with the expertise you will need to effectively screen different business opportunities.
Why You Need a Team
Some books may recommend that you take shortcuts in screening business opportunities. I firmly believe, based on personal experience and available research, that you cannot afford to cut corners in obtaining sound advice before closing the deal. If you do, you may save several thousand dollars in the short run, but if you plan to invest your life savings or other large sums of money into what proves to be a money-losing proposition, you have lost much more money in the long run taking such short cuts.
If you develop an initial business plan that clearly spells out what you want to do and how you want to do it, and establish appropriate credibility, then you are more likely to raise some of the money you need to build the team. It’s an issue of approach, not one of sophistication. Continue reading