Developing a Small &Medium Enterpri

Developing a Small &Medium Enterprise Feasibility StudyA SME feasibility study is a formalised, written approach to evaluating your business idea. It should:• Show you what facts and figures are needed to aid decision-making.• Show whether or not your idea is viable.• Allow you to discover and look at alternative approaches and solutions to putting your idea into practice.It should include the following content.How would you describe your business idea? What is it? Will it work? How is it different from existing businesses? Who will buy from you? Canyou put your idea on paper? It is not enough simply to say "A Service business" or "A coffee shop". Paint a picture of your business idea in words so that anyone reading this description knows exactly what you are talking about. To start your Feasibility Study - start with your business idea, on paper. Discuss it with others and adjust it as you obtain more information and ideas.Why do you want to go into business? Answer - To create wealth!Remember: business is principally a means of allowing people to achievethe things they want in their private life, like a home, cars, holidays and agood lifestyle. You need to set personal objectives. Do you know what you want in your private life? Consider Short Term Objective- say up to one year; Medium Term Objective- one to three years; Long term - greater than three years. You need to sort out life objectives and ensure that the business will not only assist you in generating wealth but also facilitate your life style.You cannot sell to everyone. So, who are your potential customers? Make a List. Why will they buy from you? Identify your Market Segments or groups: What knowledge do you have of your market segments or groups? How many are there? What will they buy? How often will they buy? What will be their average purchase? Create a list showing the products / services you will be offering to each segment.All the content in a feasibility study will act as supporting documents for a formal business plan.