Feasibility Report Example for Small Business
A feasibility report for small businesses simply analyzes the different departments of a business, aimed at repositioning a business to achieve maximum productivity. The focus of this article is to provide a feasibility report sample for small businesses for the sole purpose of providing the much-needed guidance for increased chances of growth and profitability.
Feasibility reports examine how feasible a business is, and its chances of growth/joining the big league. The absence of this basic requirement for small businesses is one major reason why the failure rate for new businesses is high. Using the information made available here, major difficulties related to effectively running a business is tackled.
How to make feasibility report for small business
Every small business needs to comprehensively summarize its entire operations under the introduction section. A good introduction will tell a lot about the quality of the feasibility report. Small businesses should include the advantages of their services and products as well as their importance. All the business procedures are clearly stated here, as well as the explaining how the provision of such services and products will benefit/help the business. This section briefly describes the business by reporting the basic details of the entire business operations.
Describing the Business (Business Description)
A feasibility report for small businesses contains the business description. Under the business description, just as the name suggests, there is a breakdown of the operations of the business, describing the framework and the component parts of the small business, and how they all sum up to contribute to effectively running the business. It should, however, be noted that every information provided under the business description will contribute to the final outcome of the feasibility report after having undergone the required scrutiny.
Under this section of the feasibility report, a brief history of the business and how it came to be is included. This is in addition to the mission and the vision of the business. The goals and objectives of the businesses should form a part of this section.
Describing the Market
This calls for a thorough understanding of the market the business operates in. A feasibility report for small businesses should be able to clearly state the sector the business has competence in. The type of services demanded by the market and also the level of demand, and how the demand is met by the supply should be provided here. Small businesses are found in almost every sector or industry.
The challenges and opportunities adequately captured here go a long way in proffering solutions as well as contribute to the development of innovative services to satisfy the market forces.
The Management Team
This consists of all the staff under the employ of the small business. A feasibility report for small business without this section is incomplete. Apart from providing the different departments run by each employee, their roles to the stability and growth of the business are provided in detail. The information supplied here is analyzed to encourage maximum productivity. The contributions of the workforce are weighed against the benchmark of productivity. At the end of the feasibility report, during the evaluation process, the contributions of the workforce are analyzed and responsibilities redistributed if need be.
The Legal Structure of the Business
Under this section, every feasibility report for small businesses should include the ownership structure of the business. That is, it should state clearly if the business is a limited liability company, a sole proprietorship or a partnership. Also, it should include all the regulatory requirements such as licenses for starting the business and other similar requirements which may be demanded.
The Marketing Plan
Under the marketing plan, feasibility reports identify the marketing strategies adopted (or to be adopted) by the business. Feasibility report for small businesses focuses on this section due to its importance in revealing what is done right or not done right. Consumer preferences are also captured. Properly satisfying the demands of the market through the formulation or adoption of innovation can greatly enhance the operations of small businesses.
Finances are the backbone of all business activities, especially for small businesses. Feasibility reports should contain the financial plans of the business. This includes the cash flow of the business. The cash flow contains the source of funding as well as how the money will be spent on the business. Also, the feasibility report under the financial section ensures that all unnecessary expenditure is plugged.
There is also a financial projection on how the financial future for the small business will be. However, in the event that the financial projection is favorable, the necessary action is put in place to ensure enhanced projections.
Evaluation and Conclusion
The feasibility report for small businesses rounds off by evaluating all the above sections, clearly identifying areas that need attention or improvements and proffering the right steps to the solution of these problems. It concludes by offering solutions to the raised issues.
Without a good feasibility report, the business will operate blindly. This feasibility report sample for small businesses offers a clear strategy for easy adoption in writing good feasibility reports that will impact on the business positively.