Before jumping into the whirlwind of rigorous technicalities of starting a business, it is essential to understand the requirements of business planning and establishing the feasible criteria.
The primary stage is to evolve your vision into a structured business plan. The business plan is a blueprint to develop, fund, and operate your business.
Let’s pause before diving into the complexities and rigors of laying out a blueprint for your business. Before you jump in headlong, I want to guide you first, towards the feasibility criteria of starting your business. Let’s discover if your vision is feasible.
1. Is your business financially feasible?
To start a business, you need funds. Now, this may vary depending on the kind of business you’re going for, mainly whether it’s a service-providing business or does it entail in sales and purchases of goods as well. In the case of services, if the company is an e-business where, say, online tutoring is provided, then minimum funds are required. However, if you’re going to provide services like that in a salon, funds are needed for rental space, signage, equipment, furniture, and supplies.
If your business also deals with physical goods, then you’re going to be investing some capital from the very beginning. For your business to be technically feasible, it must be financially viable as well.
2. Is your business technically feasible?
Say you want to start coaching classes – are you equipped with the correct knowledge you would provide to your students? Are the right technical equipment and machinery available to you easily? If you are, then your business is considered to be technically feasible. For any business to be technically feasible, it needs to have some funds as stated previously. Thus, the financial and technical viability of business goes hand-in-hand.
Technically feasible businesses have an advantage over others in the market.
3. Is your business economically feasible?
A business can be financially backed and technically feasible, but it may not be economically viable in the long run. If your directed customers belong to a particular area, you’d want to run a background check on the economic deficits and surplus’ in it.
Let’s say, for example, you want to start a coaching class in an urban area where the literacy rate is extremely low, and the people, in general, do not seek after education as a means of upholding their livelihood. In such cases, even if you have the money and the raw materials to start your coaching center, it’s economically infeasible due to people’s unwillingness to take part in it.
On the other hand, if you set up a coaching center in a bustling city that’s surrounded by students living in great dorms, you’ll have a greater chance of snagging them and making a quick reputation in the market.
Once you’ve done your part of answering these questions and if they all lead back to an affirmative sign for you to set up the business, you not only need to have a better idea of what you’re doing and aiming at, but also the viability of your business plan!
We are creating a new interconnected world for teenage entrepreneurs to network with fellow members, cultivate innovations, apply for funding, access entrepreneurship education, join local chapters, share expertise, and solve challenges, and more. We are super excited about young entrepreneurs who are applying solutions to real-world problems, producing thriving businesses, and pivoting the world to the future.