Weekly Ecommerce Automation articles, videos and tips by Marcus Schappi.

💰 Questions Asked by Professional Investors

Published on 10 Apr 2020

Who is your real customer? [“Who Cares?”]

  • Why can’t they live without it?
  • How will the venture reach all the identified customer segments?
  • How will the much does it cost (in time and resources) to acquire a customer?
  • How long before the customer sends the business a check?
  • How many Widgets do you need to sell to break even?
  • What are the key customer tangible and intangible factors that anyone has to provide in order to succeed? [What is the “whole product”?] What are your customer’s values?
  • How are pricing decisions made?
  • What are your unfair or sustainable competitive advantages? What are the barriers to entry?
  • What are the strengths and weaknesses of your competitors?
  • What else do you have besides technology? What do you better than any other company? Is this a product or a business?
  • What do you consider to be your Company’s greatest weakness? What has the key management team accomplished in the past? Who else needs to be on the team?

Company:

  • What do you better than any other company?
  • What else do you have besides technology?
  • Is this a product or a business?
  • What are your unfair advantages?
  • What is your organization’s uniqueness?
  • What do you consider to be your greatest weakness?
  • What do you have that will enable you to shift gears if the market is a lot different than you plan on?

Customers:

  • Who is your real customer? Network Manager or Application Manager? What industry groups are they drawn from and what are the overall trends? How are they doing it today?
  • Why/how will they use your product?
  • Why can’t they live without it?
  • What does the market want?
  • What pain is so high that they are willing to come to you? How intense is the pain?
  • What motivates your customer to buy?
  • What are your customer’s values?
  • Who are your early adopters and why?
  • Who is your mainstream market?

Sales & Channels:

  • How will customers buy your product?
  • How will customers become aware of your product?
  • Who will they call for technical support?
  • How long does the purchase decision process take?
  • What are the key variables in the buying decision? (price, service, features, reputation,
  • credit terms, delivery speed, or relationship with Salesman)?
  • Are buying decisions affected by advertising or sales promotion?
  • What is the degree of brand loyalty among customers? How is it measured or determined? What methods are used to lock customers in?
  • What would be required to persuade the user of a competitive product to switch and how
  • much would this cost?
  • How important is personal selling to this customer? How good does the salesperson have to be?
  • How many Widgets do you need to sell to break even?
  • The Whole Product:
  • What other products/accessories will customers buy to completely fulfill their needs? What are your customer’s intangible needs?
  • What is the “whole product”?
  • How is the product priced?
  • What are the expected future price trends? How are pricing decisions made?
  • Is quality the key to the sale of the product?

Competition:

  • Who are the major competitors at present?
  • Are there any expected new entries or other potential competitors?
  • What is the financial strength of the present competition?
  • What is the relative ease of entry into the field?
  • What is the importance of intangibles such as lead time, goodwill, patents? What are the barriers to entry?
  • List all of the major industries in which this product is sold:
  • How does the company compare with competition in each of the following categories? - product features - market share - marketing capability - production capability - financial resources - financial management - R&D capability - Overall management strength