Comprehensive market research workflow for Micro Venture Capital, encompassing sector identification, data analysis, financial assessment, and final report submission.
1
Identify market sector for research
2
Define research objectives
3
Develop research methodology
4
Identify target companies for research
5
Gather data on target companies
6
Perform market trend analysis
7
Analyse financials of target companies
8
Assess leadership and team composition of target companies
9
Evaluate the unique selling proposition of each company
10
Scrutinize competitive landscape
11
Examine traction and growth metrics of each company
12
Review potential risks and challenges
13
Construct investment thesis
14
Calculate valuation of target companies
15
Approval: Investment thesis
16
Prepare preliminary report
17
Approval: Preliminary report
18
Finalize and submit report
Identify market sector for research
This task aims to identify the specific market sector that will be the focus of the research. It plays a crucial role in narrowing down the scope and ensuring relevant data collection. The desired result is to have a clearly defined market sector for further analysis. The task requires brainstorming and research to identify potential market sectors. Potential challenges include the need for thorough industry knowledge and the possibility of overlapping sectors. Resources or tools needed may include industry reports, market research databases, and industry expert advice.
Define research objectives
Define clear objectives for your market research. What specific goals do you want to achieve with this research? How will it help you make informed investment decisions? Clearly articulate the desired results and outcomes of your research.
Develop research methodology
In this task, create a research methodology that outlines the approach and techniques you will use to gather data and analyze information. Consider what research methods will be most effective and reliable for obtaining the information you need. How will you ensure the accuracy and validity of your research findings?
Identify target companies for research
Identify a list of target companies within your chosen market sector that you will be researching. These are the companies you will be evaluating for potential investment opportunities. What criteria will you use to select these companies? How will you ensure a diverse range of companies are included in your research?
1
Company A
2
Company B
3
Company C
4
Company D
5
Company E
Gather data on target companies
In this task, collect relevant data and information on the target companies identified in the previous task. Use a combination of online research, interviews, and industry reports to gather data on each company. What sources and methods will you use to gather data? How will you ensure the accuracy and completeness of the data collected?
1
Online Research
2
Industry Reports
3
Interviews
4
Financial Statements
5
Competitor Analysis
Perform market trend analysis
Analyze the current market trends within your chosen market sector. What are the key trends and patterns that are influencing the industry? How will these trends impact the potential investment opportunities? Identify and analyze the market trends to gain insights into the market dynamics.
Analyse financials of target companies
Conduct a thorough analysis of the financial performance of the target companies. Examine their revenue, profit margins, liquidity ratios, and other financial indicators. How will you evaluate the financial health and stability of each company? What financial metrics and ratios will you consider?
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Revenue
2
Profit Margins
3
Liquidity Ratios
4
Debt-to-Equity Ratio
5
Return on Investment
Assess leadership and team composition of target companies
Evaluate the leadership and team composition of the target companies. Assess the qualifications, skills, and experience of the key executives and management team. How will you evaluate the leadership capabilities of each company? What factors will you consider when assessing the team composition?
1
Executive Qualifications
2
Management Team Experience
3
Team Diversity
4
Succession Planning
5
Communication Skills
Evaluate the unique selling proposition of each company
In this task, evaluate the unique selling proposition (USP) of each target company. What makes each company stand out from its competitors? How do they differentiate themselves in the market? Assess the value proposition and competitive advantage of each company.
1
Product Innovation
2
Price Competitiveness
3
Customer Experience
4
Brand Reputation
5
Market Niche
Scrutinize competitive landscape
Analyze the competitive landscape within your chosen market sector. Identify the key competitors of the target companies and assess their strengths and weaknesses. How will you evaluate the competitive dynamics of the market? What strategies and tactics do the competitors employ?
1
Competitor A
2
Competitor B
3
Competitor C
4
Competitor D
5
Competitor E
Examine traction and growth metrics of each company
Analyze the traction and growth metrics of each target company. How well are they performing in terms of user adoption, revenue growth, customer acquisition, and market expansion? What key performance indicators (KPIs) will you consider when assessing their traction and growth?
1
User Adoption
2
Revenue Growth
3
Customer Acquisition
4
Market Expansion
5
Retention Rate
Review potential risks and challenges
Identify and assess the potential risks and challenges associated with each target company. What are the industry-specific risks and market uncertainties? How will you mitigate these risks? Evaluate the risk-reward ratio of each potential investment.
Construct investment thesis
Formulate a compelling investment thesis based on the research findings and evaluation of the target companies. Summarize the investment opportunity, key drivers of growth, competitive advantages, and potential risks. What is the rationale behind your investment decision?
Calculate valuation of target companies
In this task, calculate the valuation of the target companies based on their financial performance and market position. How will you determine the fair value of each company? What valuation methodologies and approaches will you utilize?
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Discounted Cash Flow (DCF)
2
Comparable Company Analysis
3
Asset-Based Valuation
4
Earnings Multiples
5
Market Capitalization
Approval: Investment thesis
Will be submitted for approval:
Identify market sector for research
Will be submitted
Define research objectives
Will be submitted
Develop research methodology
Will be submitted
Identify target companies for research
Will be submitted
Gather data on target companies
Will be submitted
Perform market trend analysis
Will be submitted
Analyse financials of target companies
Will be submitted
Assess leadership and team composition of target companies
Will be submitted
Evaluate the unique selling proposition of each company
Will be submitted
Scrutinize competitive landscape
Will be submitted
Examine traction and growth metrics of each company
Will be submitted
Review potential risks and challenges
Will be submitted
Construct investment thesis
Will be submitted
Calculate valuation of target companies
Will be submitted
Prepare preliminary report
Create a preliminary report summarizing the key findings and insights from the market research. Highlight the main opportunities, risks, and valuation analysis of the target companies. How will you structure and format the report to effectively communicate the information?
Approval: Preliminary report
Will be submitted for approval:
Prepare preliminary report
Will be submitted
Finalize and submit report
In this final task, review and finalize the market research report. Ensure all the necessary information is included and that the report is well-structured and coherent. Once finalized, submit the report to the relevant stakeholders or decision-makers. How will you ensure the accuracy and quality of the report?
