Crowdfunding: Is It Legit?
You have to know who are the people behind the business. Know what are their working experiences, education and/or background. You need to know whether they have the 'business acumen'.
2) Business Model
Understanding the business model of the company is knowing how the company generates revenue - how it distributes its products, target market, financing etc.
3) Financial Statements
Financial statements present the financial position and condition of the company. With these, you will be able to know whether the company is generating revenues (Income Statement), what assets and liabilities does the company has (Balance Sheet) and its cash position whether it is financed from operations, debt or equity (Cash Flows Statement).
Remember this when putting up a business - "If you don't manage your business based on facts, numbers and statistics, you will fail. You can lie to yourself and talk about the what ifs and tell yourself you will get better, but the reality is that in business, the numbers never lie and they are a direct reflection of all the decisions you have made."