Why Guess When You Can Know ?
Gerry Skews
When it comes to investing in a business—whether you're backing a start-up, expanding a product line, or acquiring an asset—intuition isn't enough.
What you need is structure, clarity, and evidence.
That’s where our 8-Gate Investment Analysis framework comes in: a data-powered decision engine that filters hype from substance and turns complexity into clarity.
At its core, investment analysis is a test of logic: Is this business worth it?
To answer that, we’ve built a framework that moves you through a step-by-step analytical process—starting with a clear investment hypothesis, then rigorously assessing market potential, technical feasibility, operational readiness, stakeholder alignment, and finally, financial performance and risk exposure.
How it Works?
Our process is built around eight analytical gates, each one answering a crucial investment question:
What’s the opportunity, and is it feasible?
Does the leadership team have the capacity to execute?
How resilient is the business under uncertainty?
Are the financials sound, and is the risk manageable?
We use quantitative metrics and scoring models throughout, drawing on the 10 Determinants of Success from the Business by Numbers framework. These include:
Market Demand (TAM, SAM, Growth Scores)
Technical Feasibility (Readiness Levels, Supply Chain Risk)
Operational Efficiency (Cost Structure, Scalability, Automation)
Leadership Effectiveness (BRAT Score, LES)
Capital Metrics (ROIC, FCF, Valuation Multiples)
Scenario Testing (Base/Worst/Best cases, Sensitivity Analysis)
Each gate functions like a checkpoint—ensuring that poor assumptions, weak execution plans, or misaligned leadership don't slip through unnoticed.
Real-World Ready: The Water Vita Case Study
To see the process in action, look no further than the case of Water Vita Ltd—a hypothetical but fully modelled business that proposes eco-friendly water vending machines across the UK.
Through the 8-gate workflow, we tested everything from market sizing and behavioural adoption to pricing elasticity, capital intensity, and risk exposure. We even ran worst-case scenarios where demand underperformed or costs spiked.
The outcome? An Investment Attractiveness Score of 76, placing it in the "Go" zone—backed not by optimism, but by data, feasibility, and a well-structured plan.
This isn’t just a story—it’s a repeatable method you can apply to any venture.
Beyond Gut Feel: Why It Matters
Most failed investments don’t crumble from bad ideas—they fail because of unanswered questions:
Can this really scale?
Will the team deliver?
Are the risks misunderstood or underplayed?
Are assumptions clearly tested?
Our framework forces these questions into the light—combining structured analytics, scenario modelling, and stakeholder alignment to make sure every decision is backed by defensible logic. Whether you’re investing your own capital or advising someone else’s, this process gives you the clarity and tools to act with confidence, not guesswork.
Future-Proofing the Decision
One of the most powerful aspects of this workflow is its ability to evolve. The model is built to support real-time updates, live data integrations, and scenario refreshes. As new insights arrive—whether it's pilot performance, regulatory shifts, or competitor behaviour—you can re-test assumptions, re-score your gates, and adjust course dynamically.
This is investment analysis designed for a fast-moving world.
Want the Full Method?
The complete 8-Gate Investment Analysis Workflow, along with detailed scoring models, visual tools, and practical case studies, is available in our book: Business by Numbers.
Inside, you'll learn how to:
Apply data-led thinking to investment decisions
Score viability using proven metrics
Use AI-enhanced models to simulate scenarios and stress-test assumptions
Make better decisions—faster, smarter, and with more confidence
Buy the book and unlock the analytics behind exceptional investment decisions.
More Information
Simple 5 minute read giving an overview of the analytical approach detailed in the book "Business by Numbers"
Link to the article as a 5 minute Insight Video on our Youtube channel (External Link)
Join us for a 20-minute AI-powered deep dive into the 8-Gate Investment Analysis Workflow—a powerful, structured approach for evaluating business opportunities with precision and clarity.