Investment Readiness Roadmap (demo)

Test and improve your capacity to attract and use investment to scale your impact

The Investment Readiness Roadmap

Welcome to the Investment Readiness Roadmap! It is a systematic toolkit to support impact entrepreneurs on their journeys towards investment readiness and to strengthen their ability to raise capital from investors. The IR Roadmap is introduced in the context of the “B-Briddhi – Scaling Impact Enterprises of Bangladesh” program:

It is designed as a practice-driven framework and consists of a series of targeted questions in 5 key categories. These questions will allow you to reflect on where you currently are within your investment readiness journey. Based on your answers, you will see a spiderweb graph highlighting your strengths, gaps and areas for improvement. Don’t assume you’ll need a perfect score in all categories to be able to attract investors. Rather consider it as a continuous opportunity for learning.

This is a demo version of the full Investment Readiness Roadmap version. The full Roadmap will include many tailored and curated recommendations and resources on how to improve and fill your individual gaps based on your individual needs identified here. It will become available around August 2020.

Would you like to learn more? Read our short user guide or get started by testing your Investment Readiness right now with our check below!

The Social Problem

1. Are you working on a clear and substantial problem in the market?

We have kicked off field research by starting talk to potential users in our community and mapping out potential causes. We have done some initial desktop research to understand if others experience this problem. We are working on a framework for understanding the extent of the problem. No, we haven't yet defined a specific problem but have a few guesses. We have thoroughly investigated the nature, scope and characteristics of the problem and understand our customers and their needs as well as the root cause of the problem.

2. Does this social problem relate to the Sustainable Development Goals (SDG)?

No, what are the SDGs? We have figured out the SDGs relevant to us and made sure that these feature in our overall value proposition. We are starting to explore this as we have heard the SDGs are a useful lens. We have identified the SDG(s) that our business relates to but don't know what comes next. Completely, we know about the problem alignment and related targets.

3. How well do you understand the root cause(s) of the social problem that you are trying to solve?

We are starting to analyze this. Not at all. Yes, we have initial evidence, gathered through pilots, that our solution works and have extensive market research on local, regional and global market dynamics of how this plays out. We have built and tested our assumptions, based on sector research and some pilots, but still lack insight on regional and global market dynamics. Yes, we have laid out our key assumptions on why this problem occurs.

4. Are you familiar with the concrete consequences of this problem?

We made a quantitative analysis of the current situation plus a rough forecast of the future. We have done a qualitative assessment of the current situation. We have a vague idea. We have completed scenario and probability mapping and planning, undertaken through multiple levels of customer discovery, extensive field visits and research, and we also have a depth of qualitiative interviews to support this. We have prepared a detailed quantitative analysis of the present and future.

5. Have you identified specific target group(s) that you can also quantify?

We have prepared a detailed quantitative analysis of present and future segments. We have started to gather some data and examples and have an early qualitative assessment. We have completed a data set with future scenarios and probabilities, and started to work on pipelines of possible future segments. We have prepared a detailed, quantitative analysis of present and future segments. No, we don't know how to do this.

6. How familiar are you with the way your target group(s) currently solve the problems you are focusing on?

We don't know how to do this. We have prepared a detailed, quantitative analysis of present and future target markets (including demographic characteristics etc), and also a deep quaitative survey. We made a quantitative analysis of the current situation plus a rough forecast of the future market and started to map out major competitors' shortfalls and excesses. We have started to gather some data and examples and have an early qualitative assessment. We have a full analysis (quantitative and qualitative) with future scenarios and probabilities, undertaken through customer discovery, field visits and research.

7. Do you know about the other players who operate in your space and sector?

No, we are unsure where to start. We have started to understand the competitive landscape. We have gathered at least 5 examples of competitors in our local and regional markets. We have analyzed the entire market and are trying to understand our clear value add. We have completed a competitive analysis and found that we have a concrete value add for each target group.

8. One step beyond knowing about competing products and services is understanding your business in relation to these products and services. Have you researched the gaps and weaknesses of competing products and services for your target groups?

No, we are unsure where to start. We completed the competitive analysis and found that we have a concrete value add for each target group. We have gathered at least 5 examples of competitors in our local and regional markets. We have analyzed the entire market and are trying to understand our clear value add. We have started to understand the the competitive landscape.

The Solution & Impact

1. How confident are you that your solution offers a distinctive value add to your target group(s)?

We are not sure how our solution offers distinct value. We have built out our minimum viable product and tested it with a wide range of customers and completed our competitive analysis to conclude on our concrete value add for each target group. We know our solution has value but have not completed any competitive analysis yet. We have undertaken customer discovery and analyzed the market and are sure that we offer a clear value add. We have also embarked on studies, research, or projects to confirm this. We have gathered examples of our advantages and started some research and competitive analysis.

2. Have you run pilot programs for your offering?

No, not yet. Yes, we have finished the pilot and are currently analyzing the results. Yes, the pilot is complete and we have adjusted our business model based on the results. Yes, we have finished the pilot and analyzed the results, but we have yet to use this to adjust our business model. We're in the middle of a pilot.

3. Have you completed a theory of change that will guide your activities?

No, we don't know what that is. We have a draft that we are discussing with advisors/collegues/family members. Yes, we have set up a model that shows exactly how our resources and activities shall create the overall impact that we want to achieve. Not completed one in writing, but we have had a conversation about the change we are looking to have. We have started gathering information about different models such as the "I-O-O-I" and looked at examples.

4. How well can you describe the impact goals and value chain of your social enterprise?

We can describe in a general, qualitative way how our activites impact target groups. We have built an initial theory of change. We set up the entire impact chain with input, output and outcomes for each step in the process, including a complete documentation of examples and noted the negative/unintended impacts too. We have defined a clear impact chain along the entire product and service delivery process, including some examples from the field. We have not thought about this before.

5. Have you explored the outcomes expected to occur as a result of your product/service being available in the market?

No, what are these outcomes? We have a partial understanding as we have started to speak to our target group(s) to understand the benefits. We have begun field visits and pilot testing and are starting to map the outcomes stemming from our product/solution.ice. We have completed field visits and conducted a pilot to understand the outcomes. Yes, we have extensive data from field visits, our own completed pilot, and desk research. We have adjusted our theory of change to align withthis information and it now clearly depicts the benefits and outcomes of our solution, including possible unintended outcomes.

6. Do you understand to what extent the target group(s) will benefit from this solution and related outcomes?

No, why is this important? We have begun field visits and pilot testing and are getting good feedback from potential users. We have completed field visits and a pilot and are analysing the data to understand the benefits for our target group(s). We have started to speak to our target group(s) to understand the benefits. Yes, we have extensive in-person data, pilot information and research to clearly depict the benefits of our solution.

7. Can you measure the quality of your products/services?

We are working on defining indicators of success. No, we don't know what to measure or how. Yes, our impact indicators are defined, but we do not have sufficiently available data. Yes, the data for all indicators are available, but we only have a process in place for a preliminary assessment or for a pilot. Yes, all data for our indicators are available within the necessary time frame.

8. Have you developed an operational process and data management framework to measure your impact and value creation?

No, we do not have a system in place. Yes, we have a robust system in place and have a plan that will allow our team to collect the information necessary to understand our impact. In addition, we have a reporting methodology and timeline in place. We have identified all the indicators and are now in the process of ensuring we have the necessary systems, plans, and resources in place to collect data on these indicators. We have a system in place to collect the necessary data but have yet to implement a plan and allocate the resources necessary to understand our impact and report on it. We are in the process of determining which indicators to use to understand our impact and report on it.

Market & Distribution

1. How well do you understand the underlying market and pricing dynamics?

Not very well. We have some early research on our local market and identified some other solutions, but have not started to analyze anything. We have conducted interviews with potential customers and other stakeholders to understand the market and pricing of similar solutions in our local context. We have researched the local and regional contexts, conducted interviews with customers and are digging into the underlying cost structures of available solutions. We have a deep understanding of the local, regional, and global market dynamics and how other solutions are priced, the underlying margins, and our competitive advantage.

2. Do you know how you will reach your identified customer base?

We have a vague understanding of how to reach our customers. No, not at all. We have identified where our customers are currently finding existing solutions. We have written out the entire customer discovery process in detail, including how to communicate with them, reach them and close sales. We have a good understanding of our customer base and are developing operational process and sales channels to reach them.

3. Are your distribution channels clearly defined and manageable such that you can reach your customers?

This is not something we have explored. We have mapped out the entire customer sales cycle in detail - from reaching and closing, to the entire distribution process, including marketing, customer acquisition and control mechanisms for this current scenario and future growth scenarios. We have identified where our customers are currently finding existing solutions and thus defined means and channels to distribute products and services. We have mapped out our distribution channels for the current scenario and for the year ahead, and supported it with process and service/product descriptions. They are not entirely defined and we only have a vague understanding of how to reach our customers.

4. Have you mapped out the supply chain and the types of vendors you will work with?

We have partially mapped out our product lifecycle and processes to support that. We have conducted some early research on our supply chain. Not at all, why is this relevant? We have a good understanding of what our product and operational processes look like and thus have identified key stakeholders, including suppliers that would be a good fit. Yes, we have mapped out all our productive, operational and supplier processes, and conducted extensive due diligence, research and interviews to ensure our supply chain is ethical and aligned with our values and mission statement..

5. While this may not be applicable to your venture today, could you imagine a scenario where you can access last-mile/bottom of the pyramid clients with your solutions?

Not at all. We are not as focused on the poorest of the poor. We are mapping out how we can reach last-mile clients. We have a robust understanding of the different sales channels, partners and resources needed to reach all customer segments. We have built a robust framework of technology, retail, local partners, and other micro-franchising models to ensure that we are well able to meet the needs of all clients, including last-mile clients.

6. Have you built out your organizational structure (think team, resources, and processes)?

No, not yet. We are starting to sketch out organizational structures and how we operate. We have built out our current and future team structure, as well as the types of resources we would need. We have a good, qualitative understanding of our current team strengths and how we will grow over time. We have built out both a current and future organizational, team, and resource plan, and all our processes are fully documented.

7. Have you built growth scenarios that allow you to understand how your marketing and distribution functions need to adapt as things change?

No, not yet. We have built out current and future scenarios and know which levers are relevant for our marketing and distribution networks. We have a good, qualitative understanding of how different scenarios affect our business. We know this is relevant, but would need guidance on how to scenario plan. We have built out robust growth scenarios and underlying team, organizational and distribution plans that allow us to have a comprehensive overview and action plans for different likelihoods.

8. Have you developed core operational metrics and the underlying data management system around your marketing and growth plans?

Not at all. Currently, we have no such KPI system or data system in place. Fully. We have a very comprehensive system in place around all our metrics, with a dedicated resource on the team and this system is used in our day-to-day management of the enterprise. Somewhat. We track operating metrics. We have a basic understanding of the system in place. We have an established system for tracking our operational metrics including marketing, distribution and growth.

Growth & Scaling

1. Have you built out a product roadmap with key milestones?

We have a 1-year roadmap. We have started to think about future versions of our product/service. No, we currently only have 1 offering. We have sketched out the product cycle and roadmap for the next 3 years. We have a complete roadmap, pipeline, and value creation map sketched out for the next 5 years.

2. How strong are your core and supporting team structures?

We have a good understanding of our team's core strengths, but our support processes and standards continue to evolve. We know what our team looks like in terms of full- and part-time staff, but our internal processes and the spontaneous solutions we come up with absorb a lot of the resources of these staff. This is not something we have talked about. Our team does not share a common vision or understanding of our processes and long-term goals. We have built out both a current and future organisational and team plan, all our processes are clearly defined, integrated and documented. We have ensured our current team is fully resourced and have set processes in place for future resource needs, thus our internal workflow is efficient.

3. How well can your organization scale its impact?

We have no idea what our options are. Scaling is not our focus now as we are still figuring out our business model. We know how we could scale our impact, but need to prepare our organization for scale and work on our internal structures. Mostly; we have completed a structured analysis, our processes are standardized, central functions are poised for scale and workflows are defined. We are prepared for scaling: all functions, systems, and divisions are in place for growth and we have a good understanding of how to fill in resource gaps.

4. Have you defined a growth plan including varied scenarios for your product/service(s)?

No, we haven't had time for this yet. We have a broad vision but without details or data yet. We are in the process of sketching out a detailed plan. We completed a detailed expansion plan with calculations of the required resources for each scenario, and have built out base, weak and higher growth scenarios. We have a clear plan for expansion, including estimates of necessary resources, but there are some additional regions/target groups/channels to be checked. We have made a draft plan for expanding products/services to new target groups and regions, but we're missing some data.

5. How fast and well would your organisation be able to respond to different market dynamics (e.g., a worse macroeconomic situation, climate change, pandemics, financial issues)

We have not yet thought about this. We have mapped out possible scenarios and are spending time on figuring our next steps that would need to occur based on these possible scenarios. We are mapping out possible risk factors like these as we build our growth scenarios. We have conversations as a team about these types of things. All scenarios - base, weak and higher growth - have been planned for in detail and we know what changes will be necessary at different levels (organizational, team, product, etc.) in each of these scenarios.

6. Do you have a management information system (MIS) in place to help you guide your enterprise?

No, what is an MIS? Partially. We have collected some data from our activities. Mostly. We have various reports and use them occasionally. Yes. We get all the necessary data on a regular basis and often use them in our decision making. Absolutely. We have installed an integrated system that provides all relevant data and is central in managing our impact enterprise.

7. Do you have a system in place to understand and monitor the impact that your impact enterprise intends to achieve/is achieving?

Somewhat. We track several impact-related metrics. We have a basic concept for monitoring our impact, but we do not report it. Not at all. Currently, we have no impact monitoring or reporting system. Fully. Impact metrics are tracked continuously by a dedicated member of the team. We use it in our day-to-day management of the enterprise in addition to reporting it annually to our stakeholders and it is also verified. We have an established system for tracking our impact and also produce an annual report.

8. To what extent do you have a governance structure in place for your organization?

We do not have one and we need help understanding governance issues. We have some early ideas around this but would like more knowledge and best practices. We already have an advisory board in place and once we have raised investment, we will be putting together a formal board of directors. We know this is important, but are wondering if we should have a formal board of directors or an advisory board. We have scoped this out and identified possible board members, but would appreciate support in refining the overall structure.

Financing & Forecasts

1. Have you prepared a financial model and cash flow analysis that sufficiently explains the link between growth and capital needs?

No, we have not built our model yet. We have defined prices, income and costs, but are still missing some data. All cashflows are calculated, but there are some additional regions/target groups/channels to be checked and also to tweak the scenarios. We're in the process of creating our 3 year budget and forecasts. Mission completed: all cashflows are planned in detail and supported by different scenarios, data, and/or management assessments.

2. Have you clearly linked all your income and costs with your activities?

No, why should we? No, this is still a work in progress. Partially; approximately 50% of these cashflows have been linked to our activities. Mostly; we're at about 75% completion. Yes, completely. We identified all drivers and are able to extrapolate our cashflows based on our activities and different scenarios.

3. Do you have a strong accounting system in place to cope with your current and future growth?

Not yet. We have conducted some early research on possible accounting softwares. We have a basic accounting system in place. We have a solid accounting system in place and a dedicated team member focused on accounting and finances. We have a strong accounting system, a dedicated staff member, documented processes, and all records securely stored.

4. Have you defined measurable key performance indicators (KPI) for success and failure?

No, what is this? We're in the process of doing so. Partially, but our data are not sufficient yet. Yes, we have a solid data set and measurement, but need to define adjustment processes for deviations between actual and plan. This is all set and done: KPI measurement and processes are firmly in place.

5. To what extent can you align your financial and impact milestones?

Not at all, why is this important? We have regular conversations as a team to ensure these milestones are aligned. We think these generally align. Our team is aligned and we're all in agreement mission-wise, but at times there is tension between our mission and our ability to meet our financial metrics, and we need support in addressing this issue. We're mission-aligned as a team. Our financial goals are a product of the impact goals, with the operational set-up, processes and KPI tracking ensuring that we stay on mission - financially, socially and as a community.

6. Are you aware of the different types of financing for your impact enterprise?

No, we have no clue. Somewhat. We know about the main financing options, but not about particular features or facets. Completely. We made a very educated decision and are already discussing this issue with our favorite potential investors. Yes, this is why we have defined a clear preferences for types of financing instruments and sources that are summarized in a specific financing structure that we target. Yes, we have discussed this internally and are familiar with the features of different financing instruments and sources, including their long-term advantages and disadvantages.

7. Are you familiar with the information that your potential investors need to assess your impact enterprise?

No, we plan to give them everything we have. We have a vague idea. We are currently working on drafting something. Mostly. We checked the requirements on their websites and already prepared an executive summary. Yes, we are well prepared with a full set of information material from executive summary and business plan to pitch deck and financial forecast with different scenarios. Absolutely. We thoroughly checked all publicly available information about these investors, called some of our sources for additional soft facts, and prepared all relevant documents.

8. Have you thought about what you may want from your future investor(s)?

From our perspective, all we need is money. We have discussed this as a team and we are aware of certain forms of support or added value that are important to us. We'll explore non-financial forms of support after the investment contract is signed. We know all the relevant criteria that will ensure that we select the right investors for us. Yes, we have an early shortlist of our favorite investors according to our due diligence and have had discussions as a team regarding the exit plan.