22564VIC Cert IV Musical Instrument Making and Repair (Guitar)

BSBSMB404 Undertake small business planning

BSBSMB402 Plan small business finances

Feasibility & Analysis

The word feasible means something that is capable of being done. Therefore a feasible business idea is an
idea that is workable and realistic.
Statistics from Government data, show that that the most successful new business starters are those
people who have a not just an understanding of the business that they propose to start, but some
experience in the area of the business they are going into.
If you are new to business and will be a new starter with no experience, then it is advisable to try to get
some; this can involve doing voluntary work.

To gain a greater understanding of yourself and your business idea, consider asking questions about the
smaller parts of the business idea that make up the whole concept. This is analysis, the process of breaking
a complex topic or substance into smaller parts to gain a better understanding of it.

Lets look at some questions to establish feasibility and then analyse the results. Take some time to answer
the following statements which focus on personal qualities and feasibility of your intended business idea.

For each statement, you will rate yourself on a scale of 1 to 3

 1. No, that does not apply to me

 2. I’m not too sure
 3. Yes, I’m confident about that

1. I am a highly motivated person and I don’t give up when the going gets too difficult.

 1
 2
 3

2. I know about the industry I’m getting into, I’ve got a lot of experience and I’m good at what I do.

 1.
 2.
 3.

3. At least one of the following describes what my business will be doing:

- filling a gap in the market
- entering an existing market where demand is greater than supply
- providing a significant difference to customers. Ie. better location or price

 1.
 2.
 3.

NORTHERN COLLEGE OF THE ARTS & TECHNOLOGY 6 MARCH 2014 1

22564VIC Cert IV Musical Instrument Making and Repair (Guitar)
BSBSMB404 Undertake small business planning
BSBSMB402 Plan small business finances

4. When things get difficult, I know I will have the understanding and support of my family and friends to
fall back on.

 1
 2.
 3.

5. I can access the funds need to cover start up costs and survive until the business begins to pay for itself.

 1.
 2.
 3.

6. I have a network of experienced people to turn to when I need information, advice and support.

 1.
 2.
 3.

7. At least one of the following statements applies to me:

- I have a good understanding of taxation and record keeping
- I can pay for the services of a professional tax advisor or accountant

8. I have good communication skills and can be persuasive with others when it comes to getting bills paid
and solving similar business related issues.

 1.
 2.
 3.

9. If the business slows down for reasons that I cannot control, I have the resources to keep going until
things pick up again.

 1.
 2.
 3.

10.I have a fully developed business plan for the first twelve months of operation, complete with
marketing, cash flow and projected costs.

 1.
 2.
 3.

Add up your score and continue on with the following questions.

NORTHERN COLLEGE OF THE ARTS & TECHNOLOGY 6 MARCH 2014 2

22564VIC Cert IV Musical Instrument Making and Repair (Guitar)
BSBSMB404 Undertake small business planning
BSBSMB402 Plan small business finances

Prepare Yourself with the 5-P’s

Before launching into writing a business plan, it is a good exercise to honestly evaluate yourself to help
make a decision if your business idea has a good chance of success. Analysis can assist in anticipating any
challenges that lie ahead and help you to overcome them.

Analyse your business idea.

Is your idea feasible? Find out if there is a demand for your products or services before you get started. It
is also very useful to discover who your potential competitors will be and whether the market place can
sustain your business entering.

Researching all aspects of your business idea will involve bringing together, analysing and evaluating
information to help you write your business goals.

Some questions to answer:

 What product/service will you provide?

 Is your idea viable?
 How will you protect your ideas?
 Is there a market for your product/service?
 What skills do you need?
 Who are your competitors?
 What difference will you bring to the market place?
 Do you have the financial capacity to start a business?

Analyse yourself.

How do you know you are ready to venture into the business world as a business owner/operator?
Operating a small business isn’t just about working for yourself. To grow and succeed in business you need
a fairly broad skill-set: management skills, industry expertise, technical skills, finance, persistence and long-
term vision.

Do you really know what is involved in this potential venture and whether you are suited to life in business
and self-employment.

Some questions to answer:

 Why are you starting in business?

 What are your goals for you personally and for your business?
 What are your skills?
 What level of income do you need to generate?
 What do you see as the advantages and disadvantages of starting your own business?

NORTHERN COLLEGE OF THE ARTS & TECHNOLOGY 6 MARCH 2014 3

22564VIC Cert IV Musical Instrument Making and Repair (Guitar)
BSBSMB404 Undertake small business planning
BSBSMB402 Plan small business finances

Congratulations. You have just taken the first steps into the world of business. Keep planning and if at the
end of the process your ‘gut’ feeling is not to go ahead, you will have the ability to make a well-informed
decision, one that can always be revisited at a later stage.

How did you score?

If you scored between 25 and 30, congratulations! You’re obviously well on your way. Now it’s time to
take the first steps.

If you scored lower than 25, don’t give up. You have some work to do. Careful research and reading of
business support documentation and developing a complete business, financial and marketing plan will put
you in a better position to decide if the world of business opportunity if for you.

NORTHERN COLLEGE OF THE ARTS & TECHNOLOGY 6 MARCH 2014 4