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Is_Your_Business_Idea_Feasible
| Is Your Business Idea Feasible?
Is Your Business Idea Feasible? By Darrin F. Coe, MA 10/26/04
So you have a love for business, have a talent or skill you’re
passionate about, and believe you’ve come up with a great
business idea? Before you push forward you should consider doing
a feasibility study to see whether you’re business idea is worth
your time; whether you should just dump the idea; or whether you
can modify your idea and make it profitable.
Study a specific business. – If you can spend some time working
for a business that your idea closely resembles this is a great
way to develop an idea of feasibility – If the business is
regulated, the regulatory agency will have public records that
you can study – If you have friends in the business ask them if
you can spend a day at work with them or spend some time
interviewing them.
== sidebar == you perform a feasibility study to determine how
much a project will cost and if it can be profitable. You gather
facts, and add intuition. == sidebar ==
Your feasibility study should include a location study –
consider where it is – consider rent vs. purchase – consider
traffic – consider possible renovation and remodel costs a
competition study – consider how they could improve their
location and costs involved – study their product/service and
what costs might be involved in improving different aspects such
as – delivery and distribution – quality – marketing
presentation – what’s the competition’s unique selling point and
can you improve it? – what would be potential costs for the
improvements and can you sell the improvements for a profit?
-- A feasibility study should produce accurate information
concerning the potential costs for rent, taxes, utilities,
licenses, advertising, renovation/remodeling, and labor if you
dig deep enough. -- All of this information will prove vital to
you when it comes time to produce your business plan and pursue
financing for your project. You’ll have good numbers to make
financial and marketing projections in a pro forma manner. –
Take the time to study business idea feasibility it will prove a
powerful tool for success.
About the author:
Darrin Coe is a weekly columnist and author of the ebook, Micro
Loans: Finance Your Dreams available at
http://dcoe1.tripod.com/microfinance
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