1. Concept and Plan – The step is to understand and evaluate the business concept, then the plan in terms of growth opportunity, actual product/ service, competitive landscape, innovation, market, etc.
2. Executional Reality – If the concept and plan is sound, the next step is understanding the execution reality by better understanding the leadership, risks, etc.
3. Exit Strategy – GoodField seeks returns of at least 30 times the initial investment. This level of return is due to cover all of the other venture failures (losses), which is high amongst early stage ventures. Of the over 6 million new businesses that are launched each year, only approximately 5 % make to year 5; hires at least one employee; and surpasses the break-even point. Therefore, the exit strategy must be well thought out and clearly articulated.
4. Investment Terms – If the first three steps are approved, then GoodField must come to acceptable terms with the early entrepreneurs. The terms must be realistic given the high failure rate of early stage companies, or GoodField will have no interest.