Why are start-up
assessment tools important?
What is one of
the most common mistakes that a start-up makes? Self-Assessment or
self-evaluation is the answer.
your idea is business, product- market fit validation in the real-world
scenario with real customers is smart business tactics but continuing with the
same business model in the everchanging world without risk assessment of the
business is a suicidal practice.
unbiased feedback is vital for a start-up. In order to sustain, start-ups
should know the pain-points in their businesses, where they are lacking and
formulate a performance matrix accordingly to help them strategize a fool-proof
future ready plan. For ease of doing business, now a days several
self-assessment tools backed by experienced mentors are available online.
But, can this
be done on own. No. Any unidentified problem and circumstances can lead to risk
if left undetected, and/or wrongly assessed.
evaluation should always be done by a third party or by experts who can help
start-up measure the short- and long-term impact of the current business model
keeping in mind the constraints of resources, time, manpower and funding. Some
of the rating agencies that evaluate the start-ups are - Startup ratings, Fitch
ratings, F&P Ratings, Moodies Ratings and Crisil Ratings.
This will not
only help you in formulating risk-mitigation plan but it will also increase credibility
of the start-ups in front of the venture capitalists.
But who are
the Best people to assess your Start-up?
Co-Founder, The Start-up Board says, “Startup assessment is Best performed by
any of the following
leader, managing strategic business unit in a large company
2. A leader,
who has been an entrepreneur in the past
3. Someone with
at least 10 years of experience, to have gained on-job perspective of the
4. Anyone who
knows and have interest in nurturing of a startup business”
with expertise in their particular fields will help you proficiently in risk
analysis and identify the threats in order to help you resolve them.
can detect risks of any nature, determine their severity and outline the
priorities to tackle them.
idea behind starting The Start-up Board was to support founders with business
connections, growth and investment avenues, believes that assessment is a
structured way to sit with someone who knows similar (may not be same) space
and can give insights based on the experience and perspective assessors
Board is soon coming up with an assessment tool called myBizScore to assess the
ventures in an unbiased manner, with consistency in assessment and input
Their team of
mentors, who will undertake the assessments, are from across the globe with
expertise in varied sectors.
Some of the
experts who have on-boarded The Start-up Board team as mentors are former
top-notch heads from companies like IBM Research, Samsung, Honeywell and Indian
those experts who have multiple skill sets like business leader, managing
strategic business unit in a large company and someone with at least 10 years
of experience along with interest in nurturing a start-up business will be the
criteria for myBizscore for assessing the start-ups. Or, an expert who has been
an entrepreneur in the past with at least 10 years of experience and have
interest in nurturing of a start-up business will be the minimum criteria to
shortlist the mentor.
In a global
business environment, it is critical to be aware of all the risks, get a
complete picture of enterprise risk portfolio so that it can be addressed
quickly in an accountable and transparent way.