Business Viability

You know your idea can generate a financial return - we now need to calculate how to maximise that potential.

What range of products will you sell

When starting up you may want to initially concentrate on one service / product, and once that is a proven success then widen your sales portfolio.

What price should I choose?

There are three broad options here, cost based, customer based or competitor based pricing. By modelling these options we can decide on a price that best fits your needs and evolves with time.

How many can I sell?

There may be restricting factors, for instance :-

Time - if it takes four hours to sell one item and there is only one person in the business then the maximum sales is six per day (even if you work twenty four hours a day which is unlikely)

Space - if you can only fit in three hairdressers into your hairdressing salon, than that will restrict the maximum number of clients per hour.

Finance - if your working capital is limited this may restrict the size of your stock holding and hence the number of items available for sale.

Customer demand - you may understand that there is a ceiling on the demand for a certain item.

How much money can I make?

This is dependant on the interaction of the other factors, but if they cannot come up with a satisfactory level of remuneration for yourself the business cannot success. Some funders actually ask to see your personal finance requirements to understand if the business satisfies your needs - this is discussed in the next section - Funding Sources

Business Planner UK can help you grow your ideas into a viable business - visit us at www.businessplanneruk.com to find out