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Why an entrepreneur needs to investigate the feasibility of a new business?
Wiki User
∙ 12y ago
While entrepreneurs may always be appearing to take business risks, the best ones are actually quite risk averse and will only invest money or time in a new business venture if they think it has a high likelihood of commercial success.
It is rare to find an entrepreneur who parts with cash or their valuable time without fully understanding the business. They will have carried out their own due diligence on the business and its management and satisfied themselves that the risks can be mitigated and the rewards are sufficiently high. That's not to say that they have absolute certainty, but they will have high confidence that the business plan is likely to succeed.
There are five basic questions that any entrepreneur will ask before going ahead. These are the same questions that any investor or bank will also ask:
1. What does the business do?
2. What pain in the marketplace is being addressed?
3. How is the market pain going to be addressed?
4. How is the business going to differentiate itself from the competition?
5. How much money is needed and what is the return?
More on this in <a href="http://richardblundell.net/2011/08/5-questions-an-investor-askbusiness-plan/">richardblundell.net</a>
Wiki User
∙ 12y ago
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What is the importance of a market feasibility study?
A feasibility study's main goal is to assess the economic viability of the proposed business. The feasibility study needs to answer the question: "Does the idea make economic sense?" The study should provide a thorough analysis of the business opportunity, including a look at all the possible roadblocks that may stand in the way of the cooperative's success. The outcome of the feasibility study will indicate whether or not to proceed with the proposed venture. If the results of the feasibility study are positive, then the cooperative can proceed to develop a business plan
What are the responsibilities of an entrepreneur?
An entrepreneur is responsible for coming up with new ideas on how to meet the needs of people. He or she is also responsible for passionately pushing the business agenda into success.
Describe the characteristics of a good feasibility study?
A feasibility study's main goal is to assess the economic viability of the proposed business. The feasibility study needs to answer the question: "Does the idea make economic sense?" The study should provide a thorough analysis of the business opportunity, including a look at all the possible roadblocks that may stand in the way of the cooperative's success. The outcome of the feasibility study will indicate whether or not to proceed with the proposed venture. If the results of the feasibility study are positive, then the cooperative can proceed to develop a business plan.
What are some skills an entrepreneur should have?
An entrepreneur needs to be self-motivated and intelligent. This person should have a strong business sense and be capable of demonstrating excellent people skills.
Definition of entrepreneurship skills?
Simply the necessary set of skill required to be an entrepreneur. If an Entrepreneur is someone who starts,organizes and manages an enterprise, the Entrepreneurship skill is the necessary skills an entrepreneur needs to successfully run a business.
How will an entrepreneur can do a facility location analysis?
An entrepreneur can do a facility location analysis by comparing the features of the location to their needs. If the location is suitable, then the business person should consider purchasing the facility.
How can one subscribe to the Entrepreneur Magazine?
Entrepreneur Magazine is an American magazine aimed at small-business owners, and those looking to start a business. One needs to visit their website in order to subscribe. Annual subscriptions start from $11.97.
How would a business plan aid an entrepreneur?
A business plan lays everything out for an entrepreneur. It is like a game plan in football but for business. This plan lets the entrepreneur know where the money may come from, how much profit the business needs to generate and more things like that. It is also a good way to get a loan from a bank, by presenting the business plan because they are not going to give someone money out of the blue.
How does one become a social entrepreneur?
In order to become a social entrepreneur, an individual must have the creativity and communication skills to earn money. One needs a business mind to achieve the goal.
How can someone become an entrepreneur?
One does not need any qualification to become and entrepreneur as they are their own boss. A background in business studies will help but it is not essential. One needs to have a good amount of capital to start a business and good ideas to see gaps in the market.
A business plan is usually necessary for an entrepreneur to .?
A business plan is crucial for an entrepreneur to do anything. Without a plan, the owner may not know clearly how the business is going to grow, how much money needs to be spent to keep it going, how much revenue it's bringing in, and any other major issues. If the entrepreneur needs a loan or other financing to start or run the company, many places (even friends or family) may not lend money to someone without seeing a written plan of how the company is going to succeed.
When an entrepreneur visits a bank to apply for a loan he or she should be ready to?
An entrepreneur who needs to apply for a loan to start a business should be ready to face intense scrutiny from the bank, possible rejection of even an excellent business plan, incredible interest rates, requests for collateral that many would find outrageous.
