In all the things that a business is, the number one thing should be viability. It’s great you have an idea to pursue, it’s great you have a mission and vision, it’s fantastic you have the skills to do it as well!

But…

How viable is it?

Let’s be perfectly honest, business is about profit, and your role in the scheme of things (having all the other traits), is to ensure it is a profitable operation. Okay there is probably a moot point about how much profit you make at the end of the day, but it is important to have one nonetheless.

Consider…

Will the business be seasonal? -It’s great to grow something and sell it but the in between time might make things tough.

Will there be a demand for it? - Your friends say so, but how will you really test it? We call it market research, go google that and find a checklist or system to do it.

Will you be able to hang on? - There is often a lag between start up and profit… Will you have enough cash at hand to handle that?

Can you do it? - It’s one thing to be trained to do something and entirely another to have the right attitude and emotional stability to do it as well.

How much work is involved? - Planning, permits, licenses the list can seem endless, please do your research thoroughly to save a lot of hassle, that way you will have some strength left when it really gets started.

If you put up cash, how long before you get it back? - Putting cash in is one thing, getting is back is another. Do some cash flow forecasts and figure out how long it might take, make sure you err on the side of low income! Better to be safe than sorry. Imagine projecting a return in five years only to have a lease run out in four… OOPS!

Sell it to experts… - Find some people to pitch your ideas to and see if the numbers you create for it REALLY stand up… this might be your accountant (Don’t have one yet? Hmm perhaps now is a good time…) This panel of experts should be people who have a real knowledge of business and can ask more the the right questions you need to focus on for viability.

These are teaser points to get you thinking about the viability of your idea, so if you are setting out on the glorious trail of business, consider using them to keep the trail sunny and warm, you will pareciate the views more that way.

For more info on getting started in business and understanding the profiles of business try this.

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