Due Diligence will enable you to perform a SWOT analysis for examining the Good, The Bad and the Ugly of your CityGuru Investment.
Before describing what a SWOT analysis is, it should be noted that sometimes other investors’ due diligence will lead you towards information important to evaluating your investment opportunity. Look for their research results, and better yet, network with them.
During a Google search, we happened upon another investor’s evaluation that “CityGuru Flunks Investors Due Diligence”. Apparently, the author is not a CITYGURU Investor but was conducting a risk analysis of a possible investment opportunity. He/she was acting in behalf of an Investor Syndicate who was scouting the Seattle, Washington area.
What are important about their report are the criteria they used to evaluate CityGuru, Inc. While the criteria is objective it is to identify the Good, the Bad and the Ugly of a business venture and then calculates a “pass-fail” grade.
Admittedly, their verdict did sting a bit, but the use of “pass-fail” criteria made sense for prospective investors. But what about those of us who are already invested heavily in CityGuru, Inc? This information does us little good now, but it can be used in a more constructive way to determine what we might do about the current situation now. How can we now accentuate the Good, correct the Bad and clean up the Ugly? Enter the SWOT analysis, or Matrix.
Using data from Fortune 500 companies, SWOT analysis was developed by the Stanford Research Institute (SRI International) to provide a structured planning method in evaluating the strengths, weaknesses, opportunities and threats involved in a business venture. It involves specifying the objective of the business venture and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The idea is to give decision makers a better idea of whether or not the objective is attainable, given the SWOTs.
The relevancy of such an analysis for the CITYGURU Investor is obvious. It should be a vital part of your own Due Diligence and key in your decision making towards entering the investment, increasing your funding, or to withdraw from the investment.
So, let’s create a SWOT Matrix for CityGuru, Inc. using the typical SWOT criteria:
STRENGTHS | WEAKNESSES |
• Salesmanship; Fund-raising • No overhead; Admin costs • Small Investor base • Networking | • Founder only Company Talent • No accounting; financials • No Professional Management • No Business/execution Plan • No oversight on Cash Basis • No correlation between funding and growth/development |
OPPORUTUNITIES | THREATS |
• Located in Vibrant Marketplace • Improving economy • Networking can enhance Brand • Resolve of Litigation could greatly enhance Brand and Funding Base | • Growing Legal/Litigation Woes • Attracting attention of Govt regulatory agencies • Funding = Growing Liability • Brand tainted with Bad Press • Company is One-Man-Show • Competitive Industry |
Used constructively, these SWOTs can form the foundation of what needs to be done to “accentuate the Good, correct the Bad and clean up the Ugly of the business venture called CityGuru, Inc. Think of it as the same process as buying a dilapidated house, rehabbing it and flipping it for a profit. But like the house used as an example: there is a lot of work to be done first, and possibly even more money to be invested up front. Knowing the SWOTs and what can/cannot be done about them will determine if you should pursue this ambitious venture.
- STRENGTHS: This is the Good that we want to accentuate. It might be argued that Founder, Drew Morrison is the only asset CityGuru, Inc. has. It can certainly be argued that he is at his best when he is selling and pitching. Less time/energy spent in managing/operating the company and more time in business development would be the best use of this asset.
- WEAKNESSES: This is the Bad we want to correct. From a macro-perspective, CityGuru, Inc. seriously lacks a solid business foundation and leadership in which to navigate a rapidly changing environment. There is not a bullet on the Weakness quadrant of the SWOT Matrix which cannot be corrected for the better if CityGuru was re-designed from the ground up with a Business Plan being followed by a professional management and delegation of authority. In time, this would evolve into more Strength (the Good).
- OPPORTUNITIES: This is also the Good we want to accentuate. But we live in a cluttered house can’t see the opportunities! Tossing out what has been horded for years is perhaps the best way to see all the opportunities that exist; waiting for CityGuru to find them! But, this will not be easy; it will require “biting the bullet” to deal and resolve the many threats trashing the opportunities.
- THREATS: This is the Ugly; what we want to clean up. Ongoing litigation is long-neglected infections that are growing malignant. This is stunting the growth of CityGuru, Inc. which has evolved very little from its “startup” infancy five years ago. Bitter tasting medicine and painful remedies may be necessary to resolve all these litigations but the survival of CityGuru in the next year to two years could be dependent upon it.
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Great analysis, but did you miss something? Drew says that we are developing quite a network of key partners who will help take CityGuru to the next level within the next year. If this is true, then you should be listing this in the STRENGTHS quandrant!
Ah-Ha…the magic bullet–the key partnerships! Please stay tuned to this Blog for a post is coming about what our own Due Diligence has revealed about these “partnerships” which Drew Morrison promises will elevate CityGuru’s net worth. Read the post and then we will let you answer your own question!
I have to agree with Drew Morrison that there is too much attention on his personal lawsuits. We need to focus on getting this company off the ground rather than litigations; if he loses his lawsuits; we all could lose!
Drew Morrison couldn’t have said it better, himself! Yes, we are sure Morrison would prefer the litigation pressure go away with the Plaintiffs agreeing to be “more agreeable”. But, if you will review the Investor’s CONFIDENTIAL Report on the homepage of this site (under Free Assistance) you will see there are Judgments and Court Orders that are very serious and have been neglected far too long. And the Plaintiffs are not going away. Yes, Drew Morrison is correct in that if these litigations are not properly addressed–they can and will impact CityGuru and the rest of us. Stay tuned: a Future Post on this very subject is coming!
WE have a question for you. Did he tell you that moments after you had requested your money back…and maybe even hinted at legal action?
Just saw this blog. I have spoken with Drew and he talks a lot about what might happen. I wish someone would tell me the names of some of his “KEY PARTNERS.” A number of companies have been with him for a little while and run as fast as they could once they found out what he is doing. (Some of my female friends have done so too when they found out that their relationship was more about $$$ than romance.) So, who are the “Key Partners?” Simple question begging for an answer.
Drew hit up our restaurant about being on the Cityguru insider list of “exclusive” restaurants. Lots of promises about how working with him will make us $$$ and give us exposure. I checked with some of the other restaurants about working with Cityguru. The universal reply is don’t bother and it will cost you more in time and effort than you will ever make. If this was such a hot idea it would have taken off. It does not work except to give him money. Name three top Seattle restaurants that are part of the Cityguru family. Drew can’t do so. Also, he hit us up to invest and to get into the next big thing. Yea, sure, right. Key Partners????? Key victims.