To Go Or No Go, That Is The Question

feel free to cuss me while you re do it,Take the time to do the plan. If it helps. but rememb to thank me when it s over.

I said Inflatable Boat don t bet the farm on the opinion of friend and family,Last week we talk about a few of the wai to test the feasibl of a busi idea to help determin if the idea realli had merit or just look good on the surface. To recap. consult with knowledg busi experts, and conduct a SWOT Strengths, Weaknesses, Opportunities, and Threat Analysis. Thi week let s take it a step further and talk about the creation of a formal Feasibl Plan which will help you determin the true feasibl of your big busi idea.

becaus the result of a well-construct feasibl plan will tell you whether or not the idea ha a chanc for success that s a Go or if thi idea would be best left on the draw board that s a No Go A feasibl plan is just that: a written plan that is creat for the sole purpos of valid the feasibl of a busi idea. Some call it a Go/No Go plan..

Mani entrepreneur would rather have their front teeth pull without anesthet than go to the time and troubl of creat a feasibl plan; often becaus thei ar afraid of what it will reveal.

so thei put on blinder and resist test the idea us real world information. The last thing an entrepreneur particularli on without prior busi experi want to hear is that their busi idea won t fly.

everi hit is a home run,In an entrepreneur s head everi idea is a good one. and everi stori end with the hero sit on a beach drink Mai Tai s and light cigar with hundr dollar bills. No on want to imagin the stori end ani other wai and mani would rather buri their head in the sand and hope for the best than to test out their idea befor execution. Trust me. I ve been there, done that, got the T-shirt and paid the bill. Not a smart thing to do.

identifi your customers,Writ a detail feasibl plan will forc you to take off the rose color glass and look at the idea honestli and entirely. It will help you defin your market. potenti partner and competitors, recogn opportun and warn of potenti threats.

but not your own just not a good ideaStart a busi without test it feasibl is like teach your kid to swim by chuck them in the lake. It might be fun to try with your sister s kids..

a product or servic plan,Writ a feasibl plan is much like write a mini-busi plan. The end result should be a formal document that includ an execut summary. a market plan, a price and profit plan, and a plan for further action. Let s take a look at each section.

Execut Summary

but thorough descript of the idea,Th Execut Summari is the first section of the plan and sum up the high point detail throughout the remaind of the plan. The Execut Summari should includ a brief. an overview of the product or servic to be offered, the target market and target customer, startup costs, and price and profitability. Keep the Execut Summari to on page. I have seen Execut Summari that rambl on for page and pages. Keep each topic to on or two tight paragraph and go into further detail in the individu section of the plan.

Product and Servic Plan

but to get you realli think about the idea from all angles. What is the purpos of the product or service? What stage of develop is the idea in? What ar the limit of the product or service? Is there intellectu properti involved? Are there govern regul or product liabil issu to be considered? Are there opportun for futur expans or spin offsThi section detail the product or servic the busi will offer. The point of the feasibl plan is not onli to determin the Go/No Go result.?

Market Plan

your customer,Th market plan is on of the most import section of the feasibl plan becaus it is here that you identifi your market. and your competition. You will need to do market research to gather the inform requir to develop a realist market plan. Just open up the Yellow Page to see what similar busi ar list is not enough. You must have a clear handl on the size of your market, growth potential, and trends. You should identifi all manner of competit direct and indirect , and detail the advantag and disadvantag that your idea ha when compar to competitors. You should also profil your target custom and tell why the custom would bui from you and not someon else.

Pr and Profitability

wherebi the price is pull out of their ear see the movie,Th price and profit section should includ inform on how the price of your product or servic wa determin and the expect profitability. Mani entrepreneur have no clue how to determin the price for their product. Some us what I call the Shrek Method. get the joke . There ar a number of wai to determin pricing, but that s anoth column. Once you have price data in hand, includ it in thi section along with detail on sale estimates, cost of good sold, gross margins, oper expens estimates, start up costs, capit expenditures, etc. The price section is where mani idea ar abandon becaus the entrepreneur discov that the cost to deliv the good is just too high and the profit margin just too low to merit execution.

Plan for Further Action

how much and where will it come from? Is there a locat to consid and equip to be purchased? What role will you plai in the oper of the business? Is there a busi plan in work? Are there licens that must be obtain or legal task like form a corpor to be taken care of? Are there partnership to be form or kei team member to be recruited? Thi final section of the feasibl plan simpli detail the next step in execut the plan if a Go decis ha been reached. Do you need capit for start up expenses? If so.

don t fear the outcom of the feasibl plan. If the feasibl plan reveal that your idea wa a dud,Finally. i.e. a No Go, it is better to know that befor spend thousand of hour and ten of thousand of dollar execut an idea that would have been better off left bounc around insid your head.

but so is lose your hous to a fail busi venture. Writ a feasibl plan is a pain in the neck.