Regarding Business Feasibility Study You Need to Know
Do you have a good idea for your business? For example, such as in the field of food, making chili recipe ancestors.
Maybe you received a compliment so you felt the chili sauce was a business opportunity, but you still need to do some research to see if the idea is really profitable. One of them is with a feasibility study on your business idea.
Business Feasibility Study
A business feasibility study is a controlled process for identifying problems, opportunities, setting goals, describing situations, determining successful outcomes, and assessing the various costs and benefits associated with several alternatives for solving problems. Business feasibility studies are used to support the decision-making process based on actual business or project continuity.
A feasibility study covers six areas, starting with a description of the business, market, the technology you need, financial details and organizational structure of the business, and conclusions about how your business will progress.
How Important is a Business Feasibility Study?
It is estimated that only one in 50 business ideas are actually commercially viable. Therefore the benefits of business feasibility studies are numerous and become one of the effective ways to avoid large losses or further resources.
If the business is deemed worthy of the results of the study, the next step is to continue the business plan fully. Research and information found in feasibility studies will support the stages of your business.
Benefits and Purpose of Business Feasibility Study
Benefits obtained You can better understand opportunities, test current business concepts, increase confidence in running a business, and strengthen financial aspects. The following are the benefits and objectives of the feasibility study:
1. Reducing the Risk of Loss
Minimize risks that can be controlled or cannot be controlled. This is because everything that will come is unpredictable, so it is necessary to conduct a feasibility study analysis to minimize risk
2. Facilitate Business Planning
With future studies, it makes planning easier. Planning which includes the amount of capital, time of implementation, location, method of implementation, the magnitude of profits and benefits as well as how to monitor if deviations occur.
3. Facilitate Work Implementation
Planning that is arranged can facilitate its application, business processes carried out in a structured way makes everyone in the business have guidelines and stay focused on the goals, then the business plan can be achieved in accordance with what is planned.
4. Facilitate Supervision
With the implementation in accordance with the plans that have been prepared, the supervision in business processes will be easier. Supervision is carried out so that the course of the business remains on track and in accordance with what has been planned.
5. Facilitate Control
If there are irregularities in the business, you will be easy to fix and can be directly controlled so that the deviations that occur are not too far away.
Stages of Business Feasibility Studies
When you are about to conduct a feasibility study on your business, the following steps can be taken:
1. Idea Discovery
In order to produce business ideas that are marketable and profitable, it requires well-organized research and adequate support of resources. Like ideas, make correct decisions, and believe that your ideas make a profit. For example, you have the idea of selling sambal with an ancestor’s recipe.
After the business idea is chosen, you must collect, process, analyze, and interpret the results, conclude, and make a report of the results for your chili business. The idea is examined based on financial aspects, management, and other aspects in-depth to get input and evaluate the business.
Next, you compare your business idea with one or more other standards. For example, you compare all the costs that will be incurred with the benefits that will be obtained.
4. Sorting Out Eligible Proposals
If there is more than one business plan proposal that is considered feasible, it is necessary to choose a business plan that has the highest score compared to other proposals based on predetermined assessment criteria.
5. Implementation Plan
After the business plan is chosen, a work plan for implementing the project development needs to be made. Starting from determining the type of work, the number and qualifications of employees, the availability of funds, and other resources, and management readiness. For example, after the chosen chili A business plan, the implementation to build a chili business project and its routine operational plans need to be prepared.
Furthermore, you carry out business operations on a regular basis. In order to always work effectively and efficiently to increase company profits, in operations, it is also necessary to evaluate the business from financial, marketing, production, and operating functions.
Once you know the understanding, urgency, benefits, objectives, and stages of the feasibility study, there are various aspects that you must have during the feasibility study process. In addition to the diagram above, the following aspects of a business feasibility study are brief.
Formulate a narrative that explains the details of a project, product, service, plan, or business. For example, selling chili sauce with the best recipe for ancestors.
Ask yourself what is needed. Do you have it? If not, can you get it? How much does it cost? For example, such as the use of Journal financial accounting software to help you review and re-evaluate your business finances in real-time.
How is the market in India, consider the wider local markets for selling your chili sauce.
4. Marketing Strategy
Describe in detail how you market your product or service. Like how to sell, the target market is online or not.
What are the human resource needs for your business?
How financial will your business run? Make financial reports, profit, and loss, balance sheets, business budgets to cash flow. In fact, if you use the swiftblogging, you can update the availability of goods anywhere and anytime.