In addition to a feasibility study, one must create a thorough business plan that explores both long and short-range goals. Once goals are identified and established in the business plan, entrepreneurs are then positioned to seek public and private funding options to start a business. The planning portion of starting a new business must be at the forefront of an entrepreneurs process, as it may likely ensure the long-term sustainability of the business concept.
The goal of a feasibility study is to determine if a business idea will work; whereas, the goal of a business plan is to determine how a business idea can be a success. One of the major advantages of a feasibility study is its ability to gage whether business concept is worth pursuing. A successful feasibility study will also examine whether there is truly a demand for a product or services (Taylor, 2013). Investigating supply and demand is a pivotal aspect of determining whether a business idea can translate into a profitable company.
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Additionally, feasibility studies also analyze resources available to launch the business; thus, providing an entrepreneur with invaluable knowledge about whether a business concept will be well supported by the available resources to launch the company (Taylor, 2013). Prior to investing time, energy, and resources to a business concept, it is critical to determine the worth of a potential business idea as well as if there is a viable market to establish the business. Once a feasibility study is successfully executed, one can then progress to creating a business plan.
The advantages of creating a business plan are vast, and ultimately a good business plan will lay the foundation for the Smith 3 successful execution of a business concept. Benefits associated with creating a business plan include identifying potential problems, soliciting expert device, obtaining funding, goal setting as well as providing an exit strategy (Ashes-Edmunds, 2015). A solid business plan will enable an entrepreneur to move from the concept of a business to the actual implementation of the business.
A major aspect of establishing a business plan is identifying both short and long-range goals. Short range goals are the steps needed to inevitably reach long-term goals. Strategically matching short-range goals to support the achievement of long-term goals is required for the success of a business (Marker, 2015). Additionally, basing short and long-range goals around the objective or mission of a business creates an interconnectedness that allows for fluid achievement of the business objective (Marker, 2015).
In order for goals to be a successful business planning tool they must also be measurable, achievable, and carried out within a specified time frame. If an entrepreneur is able to create goals based on business objective, ensure that goals are achievable, as well as build upon short-term goals, they will greatly improve their chances of launching a successful business. Once an entrepreneur has conducted adequate planning and research of their proposed business idea, then they are positioned to seek funding.
There are a variety of funding options including micro-loans, community development institutions, crown funding, personal investments as well as venture capital (Thorpe, 2013). An entrepreneur can tailor fund-seeking activities based on the target customer base and location of the business. For example, if one is planning on establishing a business within an economically distressed area community development institutions could be Smith 4 good option.
Entrepreneurs whose business may contribute to the growth and prosperity of an undeserved area, may have a good chance of obtaining funding from a federally supported community development institution. Additionally, in order to provide adequate opportunity for business development, entrepreneurs may seek to diversify funding options from varied investment options to have multiple streams of funding. A great example of a successful business that started with humble beginnings and succeeded due to diligent and effective planning is Whole Foods Market.
The creators of Whole Foods believed so much in their business idea that they actually lived in their very first store, until they were able to purchase their own home dwelling. Whole Foods Market engaged in rigorous planning and was able to identify that large stores that sold organic and natural products were in low supply, while the demand for natural foods that promoted healthy lifestyles were high in demand. Additionally, Whole F-odds invested in their employees and with well-developed pay rates, salaries, and incentives.
Whole Foods also recognizes that their employees share a sense of pride and identification with the Company’s mission of improving quality of life for customers based on the products they offer. In conclusion, launching a new company is a huge undertaking that ARQ rises extensive research, planning, as well as fund raising. In order to lay a solid foundation for a successful business, an entrepreneur must be willing to invest many hours of identifying supply and demand, setting realistic goals, creating a business plan, as well as conducting a feasibility study.