Heptalysis Analysis

Success is about the wise investments and thus the successful investment requires impartiality, consistency as well as the superior judgment and insight. Heptalysis actually is the modeling concept that discusses the fundamental elements of the business ventures and suggests the ways to systemize the screening and the assessment process.

Factors that are considered in Heptalysis are:
- Market opportunities: Businesses fail because there are no real opportunities to start the business with. The analysis involves what market is currently dealing with, what is the need, and what is being met by the current competitor. The opportunity being looked upon needs to be attractive and should last for the longer period of time. The opportunity that is taken should always give a decent profit and in the other hand should also be a continued source of income.


- Product / Solution: The solution can be anything be it technology, service, product or may be a business model. The analysis of the product / solution directly identifies whether the user will be able to accept the company products with an ease or not. Businesses often fail because they begin solving problems that are not a part of the market opportunity and thus are unneeded solutions.  

- Execution plan: This refers to the creation of the strong execution plan that helps in defining the strategic framework and tactical solution to obtain significant success. Execution plan also team members and also makes sure that they are focused on the same goal and are moving in the right direction. The plan also needs to focus on the organizational goals as in whole and also help to create or plan larger business goals for the organization.


- Financial Engine: This phase of the analysis deals with the internal cash flow and external capital infusion. Allowing and understanding the cash flow allows the business analyst to understand that the access the projected cash flows, capital investments, capital requirements, money making strategies and allocation of the resources. It can reveal the company's long-term strategy for making money, or uncover potential places a business is inefficiently allocating their resources.


- Human Capital: This is the most important part of the business. No matter how much good the idea is – it is important for the end team to understand and give it a shape which further will decide whether the business will be a success or a failure. Apart from this, the hiring of the right person for the right project and assigning the task to the right person is equally important. Leaders that are being chosen by the management should be committed and passionate in the work, however at the same time he has to maintain the harmony among his team members.


- Potential Return: or payback is a function of the total available market, revenue model, pricing, profit margin and time-span. The idea is to identify realistic approach as in what can be done with money and time and then evaluate the business opportunities to make an intelligent allocation of the human capital.


- Margin of safety: The business driven by every company is unique and there are many factors that influence the same. It becomes very important for the analyst to understand what can be the potential risks and what solutions should be defined to withstand these risks. Understanding of the external as well as the internal risks is equally important. It is important to foresee the market changes and events. 

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