By Tom Okure, Ph.D
Date: June 11,2016
Date: June 11,2016
|Dr. Okure consulting with a business client|
Deciding if your business idea has a profit potential can be a difficult endeavor especially if you have never been self-employed before and don’t know how to research your idea. There are several proven steps which you can use to guide your research of the viability of your business idea.
Below is a guide to help you determine if your business idea is feasible:
- Create a profile of your potential paying customer.
- Describe the features and benefits associated with product or service offering.
- Determine your target geographic market you plan to sell to in your first operating year.
- Determine who your competitors are in your target market?
- What are your competitors charging in your target market?
- How low can you price your product or service in order to remain competitive?
- List distinguishing product and service features which will attract customers to you.
- Determine the current market or industry trends in your target area.
- Determine the potential for growth in the market.
- Determine how you plan to make potential customers know you exist.
- What is your sales and revenue projections in your first year?
- What government permits and approvals are needed to start your business?
- Describe the process of manufacturing or producing your product.
- Briefly describe your fulfilment process.
- Determine your first year production/manufacturing capacity.
- Who are your potential suppliers?
- What resources do you need to have in place before your start your business?
- Determine what your fixed and variable monthly operating cost will be to run your business.
- What personal strengths and weaknesses are likely to impact your business operations?
- Describe your contingency plans to enable you buffer market /operational shocks.
Planning ahead is not an easy process especially because you cannot readily get a feedback as to its value. Nevertheless, when you start planning for the success of your business, the objective and advantages of planning become clearer.
Planning enables you to deal with unforeseen circumstances that may suddenly plunge your business into a sudden difficult situation through no fault of your own. Planning for all types of eventualities that may confront your business allows you to deal with them in a rational manner and still reach your objective in spite of temporary setbacks. On the other hand, failure to plan can spell disaster or bankruptcy for your business.
If you are starting a business or have an existing business and think you or your firm can benefit from a thorough assessment of your business idea of existing plan, don't hesitate to contact us at firstname.lastname@example.org with your questions and a price quote for technical assistance.
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