By Aden Harris
Many people have great ideas for new business ventures but get stuck on how to turn that business idea into reality.
ETC Business Solutions recommends reviewing the feasibility of your business idea as the first step, which means determining whether the goods and services you are offering can generate satisfactory profit through both good and bad economic times.
Other factors to consider before you undertake a more detailed business plan and commit time and money to the venture include:
- Determining whether you can meet all your fixed and operating costs until the business can generate sufficient cash flow from sales;
- Prepare a cash flow projection for the first year to ensure you can meet your expenses;
- Determine your business break-even point;
- If you are buying a business, request details such as 3 years trading figures, break-up of purchase price, history of business and reasons for sale;
- Determine your own financial position, i.e. your assets less liabilities – and whether you will be able to raise sufficient finance to covers costs;
ETC through the NSW Government funded Small Biz Connect (SBC) Program has access to numerous resources that can help you undertake important research in assessing the viability of your business idea.
For example, Benchmarking.com.au is a financial benchmarking tool that enables small business to compare their performance against industry data across a range of areas including profitability, productivity and key financial ratios.
Pinpoint (Bugseye) is a web based business information solution that helps businesses to make informed decisions about a location when they are buying, starting or expanding a business in NSW. This tool enables small business owners to get critical insights about an area including the dollar value market size for a range of goods and services as well as key demographic information on customers, markets and trends. Small businesses, through their SBC advisor, can access a snapshot report valued at $45 or choose to purchase an in depth customised report.
Need more information?
ETC’s Business Consultants based in Port Macquarie, Taree, Kempsey, Coffs Harbour and now Wollongong offer business advice, at no cost to you, if you would like some advice on whether your business idea is financially viable and if so how to take it to the next step. For further information visit etcltd.com.au or phone 1800 007 400.