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Financial Feasibility Analysis "Make a SMALL investment before you make the BIG investment".
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Please consider the following, before doing so. Business Viability Most small business entrepreneurs have great ideas, but do they have the expertise to assess, if the ideas are profitable and sustainable. Do you understand R.O.I.? If you invested your money elsewhere, what returns are you able to receive, without the effort and the risk of running a business. Running a business can be rewarding, but exhaustive. How would you feel if you lost your investment, and what implications would this have on your future? Financial modelling is an important COG in the business management process. Understanding it can be a little complicated. Do you understand Break Even Points?  How many sales are required so that you do not make a profit, or a loss! How many coffees do you have to sell, to pay the rent!! Business Performance Business performance is a measurement of the business results. This can be achieved by setting goals, generally termed as budgets. Is the business meeting desired profitability and R.O.I.? Is the business growing and not stagnating, or even worse going backwards? Return on Investment (R.O.I.) Would you like a return on your business investment, and if so, at which %? If you invested your money in a fixed term deposit, what return would you expect? Would your business give you the same, or more, and remember starting a business contains "RISK". Do you understand the importance of budgets, and more importantly, how to set budgets for the coming periods. Do you know how to monitor your budgets and prepare monthly budget reports? Financial Feasibility Analysis Financial feasibility focuses specifically on the financial aspects of the business. It assesses the economical viability of a proposed venture, by evaluating the start-up costs, operating expenses, cash flow and making a forecast of future performance. The results from a financial feasibility study, determines whether the proposed investment is financially worthwhile, and makes a projection on the rate of return, on invested capital. David Farrington (MIPA-AFA) davidf@businessdefender.com.au
 Click here to request your "Existing Businesses Assessment". . Click here to request your "Start-ups Assessment".
Thinking about selling your business and
need help in presenting the financials, so as to attract more
prospective buyers?
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if you do your ground work!!!
