3 | Business Feasibility

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Chapter 3

Business Feasibility


 

Woman making floral arrangement

Focus Area 1

Introducing Business Feasibility

Hanging lightbulbIntroduction

Just because you have a great business idea doesn’t mean it will work. You need to figure out if your idea is actually doable. To figure out business feasibility, or the chance that a business will succeed, you look at things like:

  • The people who would want to buy your product or service.

  • The details of running your business.

  • How much money you will need to get started.

  • How much money you might make once you start selling your product or service.

As part of this chapter, you will fill in the About Your Business, About You, and Start-up Costs Inventory worksheets. Make sure to save your answers and notes because they will help you develop an in-depth business plan, if needed.

To get started, click on the Business Success button for a brief overview and click on the Napkin Math button to do a quick exercise to figure out if you want to continue exploring business feasibility.

If you are unsure how to navigate this site, click on the Website Navigation heading at the very top of the page.

You can download a print-only version of Chapter 3: Business Feasibility (PDF) for reference. You can download additional materials with this chapter, including the About Your Business WorksheetAbout You Worksheet, and Start-up Costs Inventory Worksheet worksheets.

 

 

Man wearing apron making food at a marketAbout Your Business

This section covers questions about your business, including potential customers, business competition, and business location. Answering these questions requires a lot of work, but is an important step in business planning.

Download and fill in the About Your Business Worksheet to discuss your business idea with your counselor. Use the different buttons to help you answer the worksheet questions.

  • The Basics button covers questions 1-4
  • The Potential Customers button covers questions 5-7
  • The Business Competition button covers questions 8-9
  • The Location button covers questions 10-13
  • The Feasibility button covers question 14

Some things to think about as you get started:

  • Some questions may be hard to answer or might be confusing. You can always skip some questions and come back to them when you have learned more or talked to others for advice. 
  • Links to other chapters in these buttons can be used to find additional information.

See Daisy's Daisies About Your Business Worksheet to see a filled-out example.

 

 

Person making a table leg out of woodAbout You

Running a successful business requires many different skills and attributes. Exploring questions about your business goals and skills will help you determine if self-employment is a good fit at this time.

Download and fill in the About You Worksheet. Click on the About You button that follows along with the worksheet and helps you begin describing your potential as a business owner. Some of this information builds on the self-assessments covered in Chapter 2: Self-Employment Readiness.  

See Daisy Daisies About You Worksheet to see a filled-out example.

 

Calculator buttonsStart-Up Costs

If you and your counselor determine your business idea is feasible, the next step is figuring how much money you need to get the business up and running. This section asks you to estimate your business start-up and operating costs for the first month.

Use the Start-up Costs Inventory Worksheet as you go through this section. Click on the Start-up Cost Estimates button below to get started.

See Daisy’s Daisies Start-up Costs Inventory Worksheet to see a filled-out example.

 

Stack of books with bookmark hanging out of oneChapter Review

This chapter focused on business feasibility. You considered:

  • The proposed business, including potential customers, business competition, and business location
  • Potential barriers, including limitations on some funding sources
  • Your business goals and the skills needed to operate your business
  • Costs required to get your proposed business up and running

Much of this information is covered in more depth in later chapters. This section is meant to help you get started in the process and consider gaps to be addressed as you move forward.

Click on the Prepare button to keep the self-employment exploration process moving forward.

Counselors, click on the Counselor Review button for things to consider as you evaluate the client's business feasibility.

 

Focus Area 2

Check Your Understanding

Question mark drawn on paperChecking Business Feasibility

This section helps you check your understanding of the material covered in this chapter. First click on the Check Your Understanding button and go through the questions on the slides. Write down your answers on a separate piece of paper. Check your answers in the Review Your Answers button.