How much experience in the industry does the management team have and how successful were the managers in previous business ventures?

A key factor in the success or failure of any business is the quality of its management.  When deciding if a business is worth investing in you need to try to evaluate just how well managed the business is.   One factor you may want to look at is the previous track record of the management team.  If they have a record of managing successful businesses in the past then it can be a good indicator for future success.Additionally a management team that has a lot of experience in the same industry can be a good thing to look for.

Do you know enough about the industry to be able to evaluate the company and make a wise investment?

Does the company have a realistic marketing plan?

For a company to be successful in most cases it will need to have a solid marketing and advertising strategy in place.  When evaluating if a business will make a sound investment you need to be sure that it has a good marketing plan.  Rich Bendall