These are the five key risks that are critical to the survival of most new companies. They are listed here in the sequence in which they are usually experienced.
 

Development risk:

Can the product or service actually be created?
 
 

Manufacturing risk:

If the product can be developed, can it actually be produced in appropriate volume?
 
 

Marketing risk:

If the product can be made, can it be sold effectively?
 
 

Financial risk:

If the product can be sold effectively, will the resulting company be profitable and can the profits actually be realized in a form that allows investors to receive cash?
 
 

Growth risk:

If the company can achieve operating profitability at one level, can profitability be maintained as the company evolves?
 
 

Every company should develop and use a succinct written business plan to guide its operations.

The plan should present the company’s business model, its specific market opportunity, its targeted customers, the benefits and competitive advantages of its products or services, its protection strategy, the company’s marketing and selling activities, the credentials of its management team and advisors, the company’s funding to date, its current requirements, and a financial forecast.

To expedite the initial review process, BLUE ROCK CAPITAL urges companies to send or FAX a one-page synopsis of this information rather than the entire document.

BLUE ROCK CAPITAL makes long-term equity investments in promising seed-stage and early-stage ventures in the Mid-Atlantic region from the Carolinas to New England. The Fund emphasizes information technology, business services, and related fields. It does not invest in biotechnology, invasive medical devices, pharmaceuticals and certain other situations. For more information, please see www.bluerockcapital.com.