So you are thinking of starting your own small business and you are unsure where to start? You have hundreds of ideas and dreams swirling around in that brilliant mind of yours and all you want to do is start living the dream of an entrepreneur. Before you go head first into turning your wonderful idea into a physical living operation, lets take the first step towards establishing whether or not your business idea is in fact feasible?
Many budding entrepreneurs miss this very important step and many of those who miss this step become yet another small business who barely makes it through their first year. Its depressing and frustrating to watch as business after business falls flat on its face due to lack of planning. Conducting a feasibility study can be tedious, as can putting together a business plan, as can researching every aspect of your project. Why do most people find these jobs tedious and why do most people skip them? Generally most people dont know how, dont have access to the information and well they just dont want to because they blindly believe that their brilliant idea is going to work no matter what. Does this kind of thinking sound familiar? Lets take a look at how to establish the feasibility of your business in 10 easy steps...
Step 1 Personal Objectives
Why is it you want to start this business? This is the first step in outlining your desires and needs and to gain an honest approach towards your intention behind starting this venture.
Write a list of your objectives and completely honest with this list before we move on.
Step 2 Personal Experience
You may have a viable idea but without your ability to execute it then your idea is pointless. Write a complete list of skills that you believe will be required to run this business. If you come across an area where you lack the skills as a business manager, then fill in the gap with a person that this job can be outsourced or delegated to.
Step 3 Personal Finance Resources
It is critical that you can identify how much funding you will require to begin and where you intend to gather the funds from. Write a detailed list of your current financial situation including all assets and liabilities.
Step 4 Describe Your Product and Service
This is your opportunity to describe your idea in detail and sell it to yourself. Include in your outline what type of business you intend to run, what your product will be, whether your product is already available in the marketplace, what equipment you will need, what skills you will require and so on.
Step 5 Describe Your Customer
Without customers there is no business. It is imperative that you know you customer better than they know themselves if you wish to give them what it is they require. Describe your customer in detail, outline who they are and how many of them there are, what are their age and their occupation. Your business idea will be built around the needs of your customers so take your time to make a clear picture of who and what they are.
Step 6 Describe Your Competition
Your competitors will help you form your business model, so take a very close look at what they offer. Research your competitors and determine what your unique selling position will be amongst your market.
Step 7 Describe Your Sales and Distribution
In what way do you intend to sell and distribute your product? Describe in every way how you are going to sell your product and how you will deliver this product to your customer.
Step 8 Describe Your Management Requirements
How do you intend to make all this happen? Daily, weekly monthly? What will your management process be? Make a clear statement here about the systems and processes that you will have in place every step of the way to run a smooth operation.
Step 9 Develop Your Sales Forecast
You need to start to estimate what amount your will sell, what your costs will be and what profit you will make. This will stand as a base budget for your future business. Include every cost you can think of and work with worst case scenario figures to avoid disappointment.
Step 10 Establish Your Start Up Expenses
Now that you have determined your running costs you will need to outline what type of costs you will need to initially get going. Write a list of one off costs that will ensure you understand the type of up front funding you will need to get started.
Once you worked thoroughly through these areas you should be able to determine whether your idea is just a great idea or whether it is in fact feasible. BusiWizard offers a great deal of free information on this subject and a complete Business Feasibility Workbook to help you get started.
Our aim is to ensure you succeed in your small business venture. Good Luck!
Heidi Shannon
BusiWizard
Many budding entrepreneurs miss this very important step and many of those who miss this step become yet another small business who barely makes it through their first year. Its depressing and frustrating to watch as business after business falls flat on its face due to lack of planning. Conducting a feasibility study can be tedious, as can putting together a business plan, as can researching every aspect of your project. Why do most people find these jobs tedious and why do most people skip them? Generally most people dont know how, dont have access to the information and well they just dont want to because they blindly believe that their brilliant idea is going to work no matter what. Does this kind of thinking sound familiar? Lets take a look at how to establish the feasibility of your business in 10 easy steps...
Step 1 Personal Objectives
Why is it you want to start this business? This is the first step in outlining your desires and needs and to gain an honest approach towards your intention behind starting this venture.
Write a list of your objectives and completely honest with this list before we move on.
Step 2 Personal Experience
You may have a viable idea but without your ability to execute it then your idea is pointless. Write a complete list of skills that you believe will be required to run this business. If you come across an area where you lack the skills as a business manager, then fill in the gap with a person that this job can be outsourced or delegated to.
Step 3 Personal Finance Resources
It is critical that you can identify how much funding you will require to begin and where you intend to gather the funds from. Write a detailed list of your current financial situation including all assets and liabilities.
Step 4 Describe Your Product and Service
This is your opportunity to describe your idea in detail and sell it to yourself. Include in your outline what type of business you intend to run, what your product will be, whether your product is already available in the marketplace, what equipment you will need, what skills you will require and so on.
Step 5 Describe Your Customer
Without customers there is no business. It is imperative that you know you customer better than they know themselves if you wish to give them what it is they require. Describe your customer in detail, outline who they are and how many of them there are, what are their age and their occupation. Your business idea will be built around the needs of your customers so take your time to make a clear picture of who and what they are.
Step 6 Describe Your Competition
Your competitors will help you form your business model, so take a very close look at what they offer. Research your competitors and determine what your unique selling position will be amongst your market.
Step 7 Describe Your Sales and Distribution
In what way do you intend to sell and distribute your product? Describe in every way how you are going to sell your product and how you will deliver this product to your customer.
Step 8 Describe Your Management Requirements
How do you intend to make all this happen? Daily, weekly monthly? What will your management process be? Make a clear statement here about the systems and processes that you will have in place every step of the way to run a smooth operation.
Step 9 Develop Your Sales Forecast
You need to start to estimate what amount your will sell, what your costs will be and what profit you will make. This will stand as a base budget for your future business. Include every cost you can think of and work with worst case scenario figures to avoid disappointment.
Step 10 Establish Your Start Up Expenses
Now that you have determined your running costs you will need to outline what type of costs you will need to initially get going. Write a list of one off costs that will ensure you understand the type of up front funding you will need to get started.
Once you worked thoroughly through these areas you should be able to determine whether your idea is just a great idea or whether it is in fact feasible. BusiWizard offers a great deal of free information on this subject and a complete Business Feasibility Workbook to help you get started.
Our aim is to ensure you succeed in your small business venture. Good Luck!
Heidi Shannon
BusiWizard