Hey Folks, here is a checklist for business viability or feasibility analysis, the fore-most step before starting a #venture. Whether you are a dare devil driver yearning to embrace entrepreneurship as a result of your eternal frustration of saying” Yes-Boss” 24/7, or a first generation entrepreneur , this checklist will be of immense help in that it will reduce the elements of uncertainty and risk.
Many businesses look at profit within quotes as ultimate viability. Even if the business is not currently profitable or undergoing a growth surge, or just going through a bad patch – there is an anticipation of being profitable at some future date. This hope of future profit warrants continued investment. We can also consider the social and environmental aspects of an organization adding value, if it satisfies any social costs.
You need to know what is viability?
Viability is defined as the ability to survive or persist. In a business sense, that ability to survive is ultimately linked to #financial performance and position. A business is viable where either:
ASK YOURSELF THE FOLLOWING QUESTIONS BEFORE STARTING-UP THE OPEARTIONS:
Fundamentals of a Feasibility Plan
• Provide key information needed by #investors and bankers
• Reasons for its chance of success/failure
• Supporting Documents
• Explanation of the principal concept underlying your venture and what sets it apart from other businesses.
SOME OF THE REASONS WHY NEW VENTURES FAIL
• Lack of Objective Evaluation
• No Real Insight into the Market
• Inadequate Understanding of Technical Requirements
• Poor Finance Understanding
• Lack of #Unique Selling Proposition
• Ignorance of #Legal Issues
Let us now look at some of the important dimensions of business viability:
Utilize Porter’s 5 Competitive Forces Model to understand market viability and industry position.
You do not have to incorporate specific financial information in the technical portion of your feasibility study, but all data in this component must support your financial figures represented elsewhere. Basic things that most businesses need to include in their #technical feasibility study include:
Business Model Viability:
A #PEST analysis is a business measurement tool. PEST is an acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit.
Management Model Viability:
Economic and Financial Mode Viability:
are dealt with when it comes to the makeup of capital structure and financial capability.
Rules for Success: