Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
Hermann Hauser’s Criteria For Judging A Business Plan
The average ratio of accepted business plans to rejected business plans is 50:1, aacording to Hermann Hauser, founder of the VC firm Amadeus Capital. How does he separate the wheat from the chaff?
Hsuer’s criteria for judging a business plan are:
1. There’s got to be a real need for that product or service;
2. There’s got to be a large market with high growth rate;
3. There has to be at least one star in the team;
4. There has to be defensible (i.e. legally protectable) technology;
5. It has to fit the partnership business model.”
In terms of personal qualities he looks for: “Enthusiasm. The fire in the belly. Unless people have a tremendous amount of energy, they will not get over the hiccups there will invariably be.”
After that come: “A fine brain, business nous, a team-building capability, and a good idea – a good business idea.”Tags: business idea, business model, business plan, good business, vc firm