Do you have a blue print of your venture? by Bhavna Gupta
When you plan to come up with an idea which you want to establish as a business or set up an entity for that activity. It is critical to making a blueprint of the venture you want to engage in. It is termed in Business language a Feasibility plan followed by a Business plan. Entrepreneurs do not procrastinate and treat your business as experiments. It may be far too costly financially, mentally and socially then what you might think it to be. Moreover in very simple way to understand the importance of this blueprint is like a tourist in a new city road without a road map.
In the first step it is essential to know is the venture the Entrepreneur is planning to set up is viable enough, there is enough commercial scope, there is enough market demand a feasibility report also confirms if the project cost is viable enough and finally it determines the actual steps and areas required to build, market and sustain the product or the service.
A feasibility study is like an investigation to ensure if the proposed venture is viable or not, it helps to make the decision to go on with the project or not to go on , either abandon the proposal or the idea or to modify and have some alternative proposal.
Lets take an example that one of my clients wanted to set up a car showroom in Iraq in 2007, he had a sufficient amount of investment for the project but while we did the feasibility study it was discovered that twice the amount of investment needs to be used for maintaining safety and security of the project which included armed guards, surveillance equipment, other safety equipment and arms and a huge amount as an in modest terms what I must mention as maintenance fee to ensure no such acts of crime may take place .
Another client of mine wanted to set up a second citizenship program office in India, as per him it is a lucrative market, he was ready to spend a good amount in infrastructure in a prime commercial area, but on an initial feasibility study it was discovered that the Government of India does not permit dual citizenship so, under such a scenario the project had to be abandoned and moved to a country which does allow.
The second step which is the business plan takes the proposal into a reality. When you make the business plan to formalize the thinking about the business that you need to start. the plans must be written well in a clear language so that there is no purpose of misunderstanding .
It should be supported with surveys, research materials and testimonials and tools.
To be continued: