F easibility study is a term which gained synonymy with business start up over the years and became a term widely treated in any business or trade institution. It is meant to ascertain the practicality of a business venture or a project. This process is to help develop a feasibility report which contain the findings of the feasibility study..
In an advanced form, feasibility report is now expanded into a Business Plan to include tactical and strategic plan. Like the feasibility study, developing a business plan should go through a rigorous process of what I call business investigation if the plan must support the business adequately. Like I said in the preceding article, business investigation need to be done by the business owner even though a professional could be engaged to write the business plan. This is because enough practical knowledge is needed to be fully equipped to venture into any business and without which the business will lack strong foundation.
What to find out in Business Investigation
There are two things that happens to a business broadly speaking; it is either the business decline and fail or survive and grow after establishment. Regardless the time within which these happens, either of the two eventually will become the story. Therefore every business investigation must aim to prevent the former and ensure the later. Since every one intending to start a business want to ensure success and prevent failure, then he or she must find out if the business is:
Workable: Every business is unique in relation to environment, season and technicality, skill and financial wise. All businesses do not thrive in all seasons, in every environment and require the same processes. You must find out what is peculiar to the business you intend to engage in.
Compatible: This is most important to the SMEs where the business often revolve round its owner. Personal strength has become a must to be considered before venturing into any business. Skills, personal make up (physical, mental and emotional status) and experience contribute greatly to business success. Therefore, personal assessment is very vital in business investigation
Marketable: It is a business because there are people to buy the product or service; without customers to buy, business cannot be business. You must therefore find out if you are going to be able to sell, who your customer are or will be. The second aspect is, who are those that are already in the business. You must find out how they are selling and how you will sell more.
Profitable: No business venture is worth it if it is not profitable. The business must be able to generate profit to sustain it and pay the owner. This can be ascertained by doing financial projection or forecasting for the business.
Full understanding of the above gives deep insight into the business and these are built around strategy, tactics, risks and critical success factors. .
