External Environment

External Environment:

· How is the economic environment where the business is located?

· How is the social environment where the business is located?

· How is the technological environment where the business is located?

· How is the political/legal environment where the business is located?

Industry Environment:

· What is the state of the industry in which the business operates? Is the industry in growth mode, or is it mature or in decline?

· How does this business compare to competitors in its industry?

· What is the business’ reputation in the industry and the community?

· How many competitors are there? What are their strengths and weaknesses?

Business Environment:

· What is the state of the business’ target market? Is its target market growing or shrinking?

· Are its target customers undergoing demographic changes, such as aging, loss of disposable income, or other transitions that could put the business at risk?

· Is the business’s customer base growing? Is the business adequately diversified, or is it overly dependent on one or two big customers?

· What kind of staff does the business have? Do employees have skills that are difficult to find elsewhere? Are their wages average, above average, or below average for the industry?

· Are employees being treated fairly? Is there a lot of turnover at the business?

Finances:

· Are the business’ sales increasing?

· What is the business’ profit margin?

· Does the business have adequate funding?

· How much debt does the business have?

Conclusion:

· Is this a business worthy of consideration for investment?

· What are the reasons for your decision?