Every business idea comes in our minds as if saying “Hey! Grab me! I’m the perfect venture you can have!” or “Let’s start quickly and let’s embrace millions of dollars together. So you better hurry man!” All of these ideas and concepts sound so great, right? And they can be very overwhelming too! But, as entrepreneurs, we must remember that problems exist when we fail to determine if the business opportunity you are about to venture with is feasible.
Understanding the Need for a Feasibility Study
Starting up a business venture can really be challenging if you weren’t able to consider every aspect that can affect the totality of its growth. That is why, we encourage you to create a thorough study that could serve as your checklist if you will pursue such business idea or not. I know that thoughts are coming into your mind especially if you haven’t undergone any business lessons before. You might be worried of how to make your own detailed feasibility study. But believe me, you don’t need any formal study to be able to see if your business is viable or not. All you have to do is to consider and assess your business opportunity using these five conditions that we are about to highlight in this page. You should also be reminded that this does not replace the need for a detailed feasibility study. However, it will help you know that preliminary viability of your proposed business opportunity.
5 Factors that Make a Business Opportunity Feasible
The first condition which makes a business opportunity feasible and the most significant, too, is the market demand. Your business idea should either satisfy a need or solve a problem. It should come out from a real market demand because only those who satisfy the needs of the market can pursue its long-term success and claim its utmost growth opportunity. Many successful entrepreneurs are sharing this path of success simply because they did not venture in some seasonal businesses that can eventually be stopped the moment the season ends. It also gives them a bigger room for furthering their success as they eliminated the add-on activities caused by changing their products from season to season.
Good Return on Investment (ROI)
The next condition which you should consider is its return on investment or known as ROI. Let’s be honest here. We intend to satisfy the needs of the market or solve a problem for one good reason and that is for profit. Therefore, your business opportunity must show a strong possibility of yielding a good ROI for you to pursue your venture. Or else, you better think of another opportunity that can give you a better yield!
This is also something that every investor looks into especially if you are trying to propose your business and secure a great source of capital for your business. What they had in mind is how much they can get out of it. Therefore, you need to show them that their return on investment can be quite realistic and convincing to secure their approval.
The ability of the product or service to compete in the market is another condition one must look into to be considered as feasible. The uniqueness of the business idea plays a significant role in creating a brand that will eventually make the business stand amidst the competition. Of course, your target market will never patronize an existing product because someone they trust can provide it to them. So why would they risk trying another brand when there is nothing new in this product’s offering except for a new name, right? What I am trying to say is, as businessmen seek for new opportunities, we need to learn to innovate new products and services to make it more appealing to our prospect target market. Let us create something that will give them something to talk about with in small groups. And the buzz of the town can’t be attained if we keep on offering them the same thing over and over again.
The Ability to Meet the Objectives of the Entrepreneur
In any business organization, its important to state the aims and objectives that serves as a guiding force to achieve the goals. It gives us more opportunities to create a more detailed plan and have wider opportunity for growth.
The Competence of the Whole Team
The last, but surely not the least, condition we must consider is the competence of the entrepreneur and his team. It is very important that we take this into account because this is the group of people who will meet the objectives by performing the entity’s different day-to-day operation. Each one plays a vital role simply by contributing their expertise to the whole organization. A strong, competent and dedicated team is always the key in every business’ success story.