Empowering ourselves and making the decision to make our dream of establishing a company come true, represents great challenges and responsibilities, for which we must be prepared. The biggest challenge is knowing if our business project can be executed and if it will be successful in the market. Fortunately, there is a tool for this, the Viability Study.
As published on marketbusinessnews.com in the article What is a viability study? Definition and examples, the feasibility study is defined as follows:
A viability study is an in-depth study that tries to determine how profitable a business idea is.
In general terms, the Viability Study is a document that includes different types of information obtained by analyzing and conducting studies on all the elements related to the business that we wish to establish, in order to determine if it is possible to develop and establish the same. Document that will be of great importance, not only to make the final determination, but also to develop our Business Plan.
A Viability Study initially presents the results obtained from the evaluation carried out on the quality and availability of the product or service that we wish to provide. In addition to the need for it in the market and the benefit that its sale will represent for the company. On the other hand, the study shows the operational and administrative capacity that is required to meet the demand for the product or services in the market. Section that includes data on human resources, technological capacity, schedules, distribution strategies and the legal status of the business. Important elements that directly affect the economic analysis that must also be presented in the Viability Study.
The economic study that requires a Viability Study, presents the financial resources that we have and those that are required to start and maintain business operations. Therefore, it will be necessary to project income, expenses and cash flow, not only to maintain administrative and operational work, but also to be able to implement promotional strategies with the intention of being able to compete in the market. Reason why, the Viability Study includes a marketing study, in which the group that we must impact to convert them into our potential clients will be identified. It will also present other related data such as sales projections, objectives and strategies that must be implemented in order to compete and achieve our goals. Valuable information for the development of the Business and Marketing Plan, if the study determines that establishing the business is viable.
In conclusion, the Viability Study is the most effective tool that exists to help us determine if it is possible to establish the business we want. It provides us with basic information about the product or service, its need in the market, possible income and expenses, but more importantly, it presents us with the economic resources we have and those that are required to give life to the project. What allows us to look for financing options or investors if is necessary. In addition to minimizing risk, with a high probability of success.
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References:
Vega, J.I. La Verdad Sobre Los Estudios De Viabilidad Para Negocios. [The Truth About Business Viability Studies.] www.empresa social.upright.edu http://www.empresasocial.uprm.edu/public_main/files_desarrollo_economico/06004.pdf
What is a viability study? Definition and examples. https://market business news.com https://marketbusinessnews.com/financial-glossary/viability-study/
(2020) ¿Cómo realizar un estudio de viabilidad de proyectos de manera correcta? [How to correctly carry out a viability study of a project?] www.esan.edu.pe. https://www.esan.edu.pe/apuntes-empresariales/2020/07/como-realizar-un-estudio-de-viabilidad-de-proyectos-de-manera-correcta-1/
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