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Financial Feasibility Analysis Make a SMALL investment before you make the BIG investment. 
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Are you thinking about buying an
existing business, or perhaps starting your own?
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 duanting. Do you understand Break Even Points?  How many sales are required before you start making a profit! 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.? How do you know if the business profitable? 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 elsewhere, 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 determine whether the proposed investment is financially possible and makes a projection on the rate of return on invested capital. David Farrington (MIPA-AFA) 0402 018 997 davidf@businessdefender.com.au
Thinking about selling your business and
need help in presenting the financials?
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