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Thursday 14 Apr 2016

Due diligence or audit of a project

 

Due diligence or audit of a project

 

 

 

Before start-up financing, the investor (the project) will have to go through a procedure called "due diligence" or audit. We offer to understand the intricacies of the process.

 

 

 

Start-up projects will sooner or later reach a certain phase of development, in which no investment is not enough. The need for funding may be due to the need to purchase equipment, scale, access to new markets, etc. One of the stages of the search process is the investment project audit or due diligence. What is it and what should be prepared in advance?

 

 

The process of finding investments usually takes a lot of time and requires constant attention. That is why many experts recommend start-ups to begin to explore these options long before the moment when the money is really needed. An audit of the project - it is a mandatory component of attracting investments, which depends on the results. In other words, it is an important thing for both startup and for the investor. "For an investor due diligence - is the ability to get the most complete picture of the invested project. This is one of sales phase, when the "buyer" (investor) has the ability to get acquaintance with future business.

 

 

A typical procedure of the audit is divided into the following steps:

 

1. Gathering of information.

 

2. Presentation of the company's business plan to investor.

 

3. A series of interviews with the founders and managers (competencies of business).

 

4. Evaluation by investor and external experts.

 

5. Invite other investors for the examination (optional).

 

6. Discussion of the business plan for the next year.

 

7. Discussion and approval of the budget.

 

8. Discussion of the problem issues of the company and the methods of solving them.

 

9. Transaction (or refusal from it).

 

 

 

We suggest to look at the situation through the eyes of the investor.

 

 

 

Procedure due diligence allows  to:

 

 

1. Understand the competence of entrepreneurs deeper and identify areas where they are strong or weak.

 

2. To assess the potential of the team and the priorities.

 

3. Deeper assess of the feasibility of the business plan of the company for the near future.

 

4. Assess whether the facts, which were cited in the discussion stage, correspond to reality.

 

5. Outline a plan of work with the project immediately after the closing of the transaction, to minimize risk.

 

 

 

During the audit, the investor often draws attention to the following factors:

 

 

1. Team.

 

2. Cash flows and their sources.

 

3. attracting and retaining customers.

 

4. The legal structure.

 

5. Development Strategy.

 

6. Intellectual Property.

 

 

About the Author: Christina White  is a student. She likes writing for essaygobuy.com and business issues a lot.

 
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Thursday 14 Apr 2016

8 keys to be successful

When we start something, we plan our success and wait it. But not always and not all people become successful. Why does it happen? I will tell you about 8 key moments, which will help you to raise your business.



  1. Don’t leave the business which you’ve started. It seems to be silly, but not everyone has patience and power to be strong in difficult moments. This simple tip can be effective, but only in that way, when you will remember and use it.



  2. Don’t hurry. But also you shouldn’t wait too much to do something. Learn to do everything gravely. Try to do everything in time. I mean that when you will be in a hurry, you will have not needed quality. And when you will wait too much, you will waste the most valuable thing. I say about your time.



  3. Develop your skills. Success is not a sudden thing. It is a way of efforts, which you’ve chosen. Do something daily, what will help you to go far. Develop your skills; learn something new and your business will be more successful.



  4. Don’t delay work. If you have to do something, do it now. By the way, it is the most typical mistake of all people. Try to understand, that later you will have other tasks and problems, and you are not able to do neither previous, nor this one.



  5. Consider the priority. Some people can’t be successful, because of their unintelligence. Such people do something, what is not important for this time. That’s why I advise you to think what is really needed.



  6. Make a plan. I don’t say that you need to plan every day. I think it is stupid, because it is not real. But I want you to make a plan for few months or even for one year. Write your ideas, strategies and ways which you want to use.



  7. Be flexible. So you need to learn how to change tools to be successful. Try to use new ways, find alternative solutions. You will be successful only with this quality.



  8. Don’t forget to believe. Say that you will be successful and your business will be profitable. Say it to yourself every day, even when there are no perspectives at the moment.




About the Author: Christina White is a freelance writer from Chicago. She is an educated journalist, who writes really professionally for OnlineEssayService.co.uk. Christina writes about many topics, which are connected with almost fields of our life.

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