The Modern Goddess (Online)

Business Success Factor #3

In my previous post, Women in Business, I listed 7 key success factors when going into business and the third success factor is preparing a feasibility study.

Many small business women skip this part of their business planning because they are passionate about their business idea and are keen to get started.  However if they do not work through this stage of planning, they could stand to lose a lot of money and waste a lot of time.

A feasibility study helps you to evaluate and decide whether to proceed with your business idea.  By gathering all the relevant information for your business and those of your competitors, you can identify the viability of your business idea.

If you were needing funding to start your business, a feasibility study is a must.  To get you started on your own feasibility study, here are some points for you to address:-

1. Personal Details - it is important that you present yourself well on paper, therefore you should include your skills, qualifications, working background, experience and personal qualities.

2. Personal Financial Situtation - your business may not start making a profit within the first year so it is a good idea to know exactly what your own personal needs are for an income.  List your personal assets and liabilities as well as th emontly personal expenses.

3. Business Idea - describe your proposed small business activity including products and services, barriers to starting your business, key business objectives for the preseent, short term and long term timeframes.  You should also include how you are starting you business - starting up, buying an existing business or obtaining a franchise outlet.

4. Organisational Structure - this is the legal and management structure of the business, including professional advisers.  You may want to explain why you have chosen a particular legal structure along with profiles of the people working with you.

5. The Environment - this covers your business environment from opportunities and challenges, competitors, business location, advertising, target customers and competitive advantages.

6. Finance - just as important as the rest of the feasibility study, the financial overview should include loan amount if needed, establishment costs, forecasted income, expenses and cash flow.

Once all your data has been researched and collated, it is a good idea to write a brief conclusion discussing the feasiblity of your business.  Completing a feasibility study allows you to move forward in your business, confidently knowing that you have every chance of success.

Three cheers to women in business!

Image by: Boa-sorte&Careca’s