Completing the Puzzle

Business owners have certain skill sets. It is rare to find one who has all the answers, even though they may or like to think they do. They may be superb at product design and manufacturing and weak at marketing. They may understand the importance of protecting their business legally with contracts, bylaws, and buy-sell agreements but lack some comprehension of debt-to-equity ratios or balance sheet evaluation.

A business owner always has the option to hire employees who have the skill sets they need and may be missing personally. If there is enough demand for contract reviews and pursuit of accounts payable, it makes sense to bring in a lawyer. If there are a plethora of shareholders and complicated financial records to maintain, it may be wise to employ an accountant. If there are hundreds of employees, the business might consider having a financial planner on to assist personnel with their retirement plans. Hiring lenders may be out of the picture, but there are companies that have established credit unions.

However, some business-related skills are best provided to owners by outside professional consultants, such as lawyers, accountants, financial representatives, and lenders. When you take the time to think through what the consulting professions offer to a business owner, and only look at those four professions, you realize something is missing.

What's missing?

The professional business planner and strategic marketing consultant.

Professional business planners comprehend the nuances of a business and the unique needs of a business owner, even if it's a franchise operation. We know when to advise you on getting a legal review of an operating agreement to avoid problems, or which accounting firm is best prepared to conduct the audit for you. We have relationships with a variety of banks, credit unions, and other funding sources (angel investors) to help you obtain the financing you need, and we also understand the importance of financial planning to ensure you achieve the objectives you have for yourself and your business.

Help is available to grow your business. All you have to do is ask for it.

Is It A Good Idea?

How good is your business idea?

One of the best methods to validate your concept is with a feasibility study. Basically, a thorough, professional study answers the question of whether your idea is viable and worth pursuing as a feasible endeavor.

If your idea is for a business start-up, think how valuable it will be to know - up front - that the concept will not work. In conducting a feasibility study for a client who wanted to convert a vacant manufacturing facility into a community center at a cost of $750,000, the $10,000 cost provided valid information that suggested it may not be viable. Feasible, yes. Viable, no. The client had to make the determination, but the feasibility study wound up saving a lot of time and money ... and the potential heartache of investing 3/4 of a million dollars only to fail within a short period of time.

If your business idea is feasible, it generates adequate cash flow and profits, withstands the risks involved, remains viable over the long haul, and achieves your objectives.

A professional feasibility study:

1. Evaluates alternatives.;
2. Assesses market potential;
3. Analyzes risks and rewards; and,
4. Provides justification for a go/no go decision.

A feasibility study is not a business plan. The business plan follows the market research that says it is a viable concept and the "go" decision has been made. The plan then determines how the business is structured, developed, implemented, and managed to profitability.

Among the reasons to do a feasibility study:

• Clarifies the concept;
• Identifies possible alternatives;
• Investigates strengths, weaknesses, threats and opportunities;
• Identifies influential factors for proceeding;
• Enhances the probability of success;
• Provides quality information to aid decision making;
• Provides business viability documentation; and,
• Assists in securing investors or outside funding.

A feasibility study is simply a good business practice. Study successful businesses and you will find they dipped their toes in the pool before diving in.