The viability of a business is measured by its long-term survival and its ability to sustain profits over a period of time. A business is able to survive when it’s viable because it continues to make a profit year after year. The longer a company can stay profitable, the better it’s viability.
A business demonstrates its viability by making a profit every year of its existence. Some say a viable business is one “with legs,” and the Cambridge Dictionary says something with legs can continue to exist and be successful for a long time.
Viability is like trust. When your trust in someone is shaken, it’s almost impossible to get it back. And when a business loses its profitability, that’s difficult to recover. So viability is linked to profit, but also to both solvency and liquidity.
The business plan covers the following sections:
1.) Executive summary, Mission and Vision, Key success factors, Business model summary.
2.) Company Description Business model canvas, Operational model, USP (UNIQUE SELLING PROPOSITION), Organizational structure, organogram, Business risks.
3.) Situational Market Analysis, Trends, Challenges, Target Market Segmentation, Porter’s five forces of profitability, SWOT.
4.) Growth plan
5.) Marketing plan
6.) FINANCIAL PROJECTIONS
7.) Key Assumptions, Financial summary, Projected Income Statement, Projected Cash flow, Projected Balance sheet, Loan Schedule, Financials Analysis.
8.) Business Ratios and Infographics).
Tip: Setting Goals
Good management is the key to success and good management starts with setting goals. Set goals for yourself for the accomplishment of the many tasks necessary in starting and managing your business successfully. Be specific. Write down the goals in measurable terms of performance. Break major goals down into sub-goals, showing what you expect to achieve in the next two to three months, the next six months, the next year, and the next five years. Beside each goal and sub-goal place a specific date showing when it is to be achieved.
Plan the action you must take to attain the goals. While the effort required to reach each sub-goal should be great enough to challenge you, it should not be so great or unreasonable as to discourage you. Do not plan to reach too many goals all at one time.
Establish priorities. Plan in advance how to measure results so you can know exactly how well you are doing. This is what is meant by “measurable” goals. If you can’t keep score as you go along you are likely to lose motivation. Re-work your plan of action to allow for obstacles that may stand in your way. Try to foresee obstacles and plan ways to avert or minimize them.
Devise a realistic proposal/business plan according to the funder’s requirements and other financial regulations. Your bizplanhero will help you compile.