A viability plan is a written document which specifies all the aspects related to starting up. Though there is not a standard format most entrepreneurs choose to include most of the following chapters.
A presentation of the project, as well as the exposition of the business activity.
Analysis of the existing market
Objective niche, problem that our product solves or need that it satisfies.
Marketing and Sale Plan.
Start up an Commissioning.
Organisation and HHRR.
How will the initial costs be covered.
Pictures and other additional documentation.
Who might need one?
Every entrepreneurs should give some thoughts to the costs and resources needed to start up.
It is specially necessary if you are going to need finance or recruit partners or investors.
You will need to prepare one if you are going to be applying for a official grant.
In many cases the difference between success and failure is dependant on the preparation of a convincing viability plan; well thought-out and realistic.
Before rushing into writing the document consider the following tips.
- Keep ti short.
The document should not be too long. It should contains the basic guidelines to lead the project from the idea to a business. In some case that can be achieved with a few well documented pages.
- Keep your audience in mind.
If the plan is to be read by a bank manager or private investor it should not contain too complicate language. Keep the description of your product simple so that it is easy to read. Focus on how the product solves potential clients’ problems or makes their life easier. If you need to include complex stuff use the appendixes.
- Be realistic.
It is common at the early stages to be infused with optimism. However it is equally advisable to be conservative with our expectations of sales at first as well as allowing a loose margin for unexpected expenses which are common at first.
Overall, remember that your Viability Plan should be a tool useful to find investors, partners and finance.
It is the first document in which you will sell your project to other people, a essential skill if you are going to sell it later to your clients.
At LimitConsulting we will help you to write viability plan that will satisfy your investors and be an useful tool to accomplish your goals. Subscribe and we will keep you posted on more articles and tools that will assist you in preparing one.