Feasibility

Feasibility
October 26, 2015 Gary Shotton

Many people start with a business idea that has little to no chance of becoming profitable. Start by looking at the big picture and determine if your idea has a reasonable chance of becoming a successful business. In a simple way, determine how much income will be necessary to pay the bills including your salary and still make a profit. By Gary Shotton #000084

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Feasibility

By Gary Shotton

This text is in Extreme Rough draft and will be edited in the near future.

today we’re going to talk about a big subject feasibility study doesn’t that sound like budget and diet and and those kind of words that just don’t taste very good well I’m going to encourage you to make some whatever you want to call it but a feasibility study because I’ve been fortunate to help over a ten-year period at least a hundred and fifty different classes where I was teaching with another friend of mine how to write a business plan and these people were coming in with an idea and that’s good but I could tell you on three for some but there is no feasible way this is ever going to make any money and I had to try to guide them into thinking okay you might want to think a little differently here now twenty-five percent has some pretty good ideas but the people that brought these ideas hadn’t even used their brain to think is this even logical is there any way that this is going to make a profit so I hope to help you with this I hope to not criticize anybody I’m not in any way trying to do that I’m just saying think it through even before you write your business plan you can’t highly write a business plan if you haven’t done a few things one thing I’ve told hundreds of times become a question asking machine you’ve got to start asking questions and ask questions asked questions asked questions asked questions of people that are already in similar businesses like you’re interested in ask questions as those vendors that are supplying either products or materials to make your final good ask questions of those people that are buying from you already I mean all kinds of things just be a sponge for ideas be sponging this in you have to get enough knowledge base to kind of see where you’re going to fit an itch I was talking to somebody just recently and I suggested don’t go ahead to head with somebody that’s always successful in an area in the same market find a a little niche that’s close by something that may you cannot focus in on so it all comes with being feasible is this going to make a profit keep in mind that the scoreboard in business is profit that’s it now there’s other sub scores but the big one is did I make up profit or not or at the end of the time period is my ballot my income statement positive or negative now in saying is this logical let me give a couple examples there’s more than once I had people inquire about owning a laundromat that makes sense I mean you’re going to be helping people they need to clean their clothes they’re going to be continually need to repeat it business so let’s talk about it well this person was looking at possibly buying an existing launder bentall nothing wrong with that but I said is this feasible with the money that you’re there asking me you to pay them for the laundromat how would you get your money back at enough money so without even a big old plan just my suggestion was go set eight hours in your car vehicle under under an umbrella or something across the street and just watch who comes in eight straight hours get you a coke get your sandwich set their count how many loads of my arm loads you can estimate how many customers came in the door how many it by your estimation how many loads of laundry would that be but you can go in and see what a load of laundry cost right now well how much revenue would have happened in that eight hours and do it again if you need to and how many days would you be open so now you’re creating a logical okay here’s how much money is coming in the door okay there’s how much money is actually coming in the door because I know about how many loads of laundry or being that because it’s logical I can see this is a natural process then I can start talking about because I’ve asked questions how much is it going to cost for the water how much is it going to cost for for electricity I mean you can ask those questions and get some ideas and now you can start saying hey if I owned this business is it feasible for me to pay somebody to manage it or am I willing to have my hamburger every day and never at set there and watch the laundrymat with no one ever no extra labor if I’m going to do labor i’m going to figure my labor in run the numbers run the numbers run the numbers on a little napkin on a piece of paper get beeps piece of paper get organized thinking how am I going to make enough money to pay my own salary how much am I going to take out in salary that’s a big deal a lot of people start a business and they misunderstand that they can’t take a lot of money out of the business money is cash dollars is cash is blood cash is what keeps you alive if you can’t pay your bills it’s a horrible experience and in this whole process keep running the numbers keep asking yourself is this feasible is this logical I started a moving and storage business and from day one I could see it was feasible I can see that people didn’t really prefer to move themselves and i can see that i could charge a certain amount for my manpower i was basically an employment service for workers and i could start seeing that as long as I stayed in my house where I kept my overhead down I started in my house my garage is where I kept my my my packing supplies my living room was where i dispatched i wasn’t something you want to do for a long time but as I got into it I got seeing the number things okay if i buy a building or I rent a building is it feasible that I can pay the rent at some point in this whole process I had a customer that was going to rent part of the warehouse space okay now that’s feasible because I have a customer i don’t have just an office i have moving and storage don’t disengage your brain from this whole process think logically i believe that you can find and god will help you find a business that will fit you but in the end of the day even before you write your business plan I think you’ve got to ask enough questions I think you’ve got to have got at it out enough numbers down in the system to say do I have a chance of making this into a business if not maybe there’s something in there close by don’t disregard just because you’re there maybe you’ll find something thats related to that so let me help it help you hope this has been a help to you thank you for this you
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Gary Shotton
Founder | IBBTalks.com
The founder of IBBTalks.com which was formed to "Inspire Better Business."
As an astute businessman, he is passionate about helping others in the business world achieve maximum profits. He has a keen interest in international business. www.InspiringBetterBusiness.com
The founder of IBBTalks.com which was formed to "Inspire Better Business." As an astute businessman, he is passionate about helping others in the business world achieve maximum profits. He has a keen interest in international business. www.InspiringBetterBusiness.com

3 Comments

  1. Alla Pavetic 2 years ago

    Another great video! You present a lot of questions to your audience and this way you make them think, make them take actions. So they are getting engaged in your teaching because right away they can apply it to themselves.

  2. Alla Pavetic 2 years ago

    Another great video! You present a lot of questions to your audience and this way you make them think, make them take actions. So they are getting engaged in your teaching because right away they can apply it to themselves.

  3. Author
    Gary Shotton 2 years ago

    Thanks for your encouragement and positive feedback. Gary

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