Do you know how may new businesses open up each month in the state of Georgia? How about in your county? In your city? How many of them will be vying for the same clients you are? Would this be valuable information? I am certain it is.
You need to know this information like you know those who are closest to you. This is how you determine where you can open your business, what your niche, or specialty might be, how much to charge, how many people who could or would potentially use your services are in the area, etc.
This research is called a feasibility study. Do a lot of new businesses do this? A lot of them don’t. Should you? Absolutely. This would be no different than planning for a child. Another way to say it is that the benefits far outweigh the costs.
A feasibility study is a logical process used to evaluate a business idea by looking at the proposed business from different angles, including:
• Market Viability
• Technical Viability
• Business Model Viability
• Management Model Viability
• Economic and Financial Model Viability
• Exit Strategy Viability
The ultimate goal of the study is to determine the level of risk associated with proceeding with starting a particular venture. It simply answers the question, “Is this venture feasible?” A feasible business venture is one that will generate enough revenue and profit to sustain itself for a foreseeable amount of time. Additionally, the organization should be able to withstand economic and organization risks and remain viable long enough to accomplish the organization’s vision.
A healthy amount of data will need to be gathered (versus a “gut feeling” or instinct methodology); the study will examine three main areas:
• Legal issues – what legal implications exist
• Technical & organizational requirements – What resources are required for the organization to be functional
• Financial overview – can the organization attract required investors or raise seed capital to start the organization? Can the organization be fiscally sound in the market it serves?
Results of the study should include recommendations and limitations, along with supporting evidence for the recommendations. If the results of the feasibility study are favorable, the business plan will be the next logical step in the process. However, if the results of the study are not appealing, the project may be re-engineered or the project will be scrapped.
Information sources for the data include BizMiner, Nolo (legal documents and forms), Findlaw.com (Legal information) and other information sources. While templates for feasibility studies (individually) are probably difficult to find, some business planning templates include some level of feasibility study in them. For a more directed approach, I suggest you work with a qualified consultant, such as those at Aepiphanni Business Solutions.
Rick Meekins is the Managing Consultant at Aepiphanni, a Business Consultancy that provides Management Consulting, Managed, and Implementation Services to business leaders and entrepreneurs seeking to improve or expand operations. We are the trusted advisor to those seeking forward-thinking operational and strategic solutions to help them plan for and navigate through the challenges of business growth.
If you are ready to discuss how Aepiphanni can help you with business strategy, overcoming challenges to growth or any number of business solutions for your business, whether a small, growing or established company, contact us directly or submit a request for a complimentary Coffee & a Consult to learn how we can help you CREATE | DESIGN | BUILD an Extraordinary company.