Make a Go/No Go Decision
Decide whether or not to complete your business plan.
There will come a time to assess whether you have reached your main market research destination, to have enough information to be able to make a go or no-go decision. This is also referred to as proving your business case (see Step 10).
Use the worksheet, Proving Your Business Case, to list and assess how comfortable you are with the proof you have gathered so far. Make note of any areas that need further market research or strengthening, and complete those tasks. Work with this step until you have enough information to decide whether to complete your business plan.
Choosing the Right Business Opportunity
Aside from financial considerations, numerous other factors could affect your decision:
- Will the business meet your financial goals?
- Will the business bring you the lifestyle you desire?
- Do you enjoy the work you will be doing?
- Has it been a lifelong dream that will preoccupy you until you pursue it?
- Will it enable you to locate and live in a desirable area?
- Are there more attractive opportunities for your investment?
- Can you afford to lose your investment if the business doesn’t succeed?
Action
- Use the Proving Your Business Case Worksheet example to create your own version, and list the ways you have proven your business case.
- Using the following Feasibility and ROI Worksheet, determine if your business idea is viable or feasible, and calculate the return on your investment.
- Compare the return on your investment with other investment opportunities.
- Decide whether to complete a business plan for this venture.
*Click on this worksheet to download a copy to your computer
Feasibility and Return on Investment (ROI)
The following table provides you a process to determine whether your business is viable. It also guides you to consider the return you will earn on your investment. By the time you reach this step, you should have gathered the necessary information to complete this task. Any missing information points to a need for more market research.
*Click on this worksheet to download a copy to your computer
Calculating Return on Investment
To calculate your return on investment (ROI), divide your profit after taxes by your total investment (times 100), as follows:
Profit After Taxes ÷ Total Investment x 100 = ROI
The following Worksheet will help you compare your return with potential returns on other investments.
*Click on this worksheet to download a copy to your computer
Encouragement for the Business Planner
If you have arrived at this point and determined that your business is not feasible, you might have just saved yourself a lot of heartache. If you have determined that your business is feasible and feel confident it can succeed, you have probably completed the most difficult part of the business planning process, your market research. The next steps should go quite quickly. You’re a lot closer to completion than you might think!