Upload
mary-kelly
View
219
Download
0
Tags:
Embed Size (px)
Citation preview
Assessing Business Ideas
Overview
Before starting a business, it is important to have a business plan
Business Plan A document that describes the
objectives of a business and summarizes the strategies and resources needed to achieve the objectives
Also known as a venture plan
Criteria
A business plan must consider the following:FeasibilityMarketabilityProfitability
Feasibility
Will the idea work? Must consider:
Financing Location of business Licences and permits Suppliers Staff
Financing
Must consider the financial needs of the business
Usually accomplished by completing a budget
Outline: The amount needed The source(s) of the financing
Term, interest rate, amount, etc.
Location
Helpful to explain why you chose the location you did
Include details such as: Address Rent Taxes Utilities
Licences and Permits
Different types of businesses require different permits e.g. if you’re selling something, you
require a Vendor’s Permit Should include a description of
where, when and how you plan to obtain your permits
Suppliers
Must know your needs in advance Should list:
Each item The name of the supplier The price of each item and The terms of the purchase
Staff
It is helpful to describe your staffing needs
Must list: Title of positions to be filled Job descriptions How you plan to recruit for the roles
Marketability
Must ensure there is a market for your product or service
Must assess: The target market Competition Price of the product or service Identify the characteristics that make
your product or service unique
Profitability
Must be able to identify all costs associated with the venture
Ensure that revenue is greater than costs
Helpful to produce an Income Statement to show that the business is planning to generate a profit