Understanding

Business
Viability
The viability of a business is
measured by its long-term survival
and its ability to sustain profits
over a period of time. A business
is able to survive when it's
viable because it continues to
make a profit year after year. The
longer a company can stay
profitable, the better it's
viability. For many enterprises,
viability is ultimately linked to
profit
Even if the business is not
currently profitable – perhaps
it is in the early stages of
development, undergoing a growth
spurt, or just going through a
bad patch – there is an
expectation that it will be
profitable at some future profit
justifies continued investments.
This economic notion of
viability can also be extended
to not-for-profit enterprises
such as public sector
organizations and charities.
Such organizations are viable if
they are seen to deliver social
or other value, sufficient to
justify adequate funding and
support on an ongoing basis.
In addition to economic notions
of viability, we can also
consider the social viability
of an organization. An
organization is socially viable
if it provides enough value to
justify any social costs
(internal or external).
Viability as Future Profit
The simplest notion of
viability is that a company is
viable if it makes a profit;
(Profit = Income minus
Expenditure).
And also, either it must reach
breakevenbefore funding runs
out or the inventors must be
willing to provide further.
Viability as Shareholder Value
Distribution will be some of profit
goes on interest (bank debt, etc.)
and tax. Some profit may be
distributed to investors. Some
profit may be retained to fund
further growth (organic or
acquisition).
Note: “Vale Stock” – share price
based on dividend yield while
“Growth stocks” – share price based
on expected growth.
Growth
versus
Income
In the income phase, money are
returned to the investors.
It is important to determine
whether the business grows to
ensure its viability. Growth
maybe organic or by acquisition.
Companies often have to raise
extra capital or borrow money to
fund a large acquisition.
Example is the Microsoft Company
which produce mountains of cash
and are now starting to pay
decent dividends.
During of this time of
crisis, the internet
platforms are the most
profitable business because
of the consumer demands like
for education; google,
youtube and etc. are the most
visited internet platforms.
Business
Viability
The viability of a business is
measured by its long-term survival
and its ability to sustain profits
over a period of time. A business
is able to survive when it's
viable because it continues to
make a profit yearafter year. The
longer a company can stay
profitable, the better it's
viability. For many enterprises,
viability is ultimately linked to
profit.
Factors that affects
business viability are:
profit,
social,
funds/capital,
work force (management
team, and etc.
Evaluating the
Viability and
Impact of
Business in
the Community
Many of us are faced with
business opportunities on regular
basis especially in the midst of
crisis. We need to earn money to
supply our daily needs. Deciding
what’s worth embracing though can
be difficult. Whether your
starting a new business or
whether you’re trying to expand
your current business with a new
opportunity, it’s vita to know
how to evaluate it.
There are several factors
that will help you evaluate
the viability and impact of
the business. We need to
remember that business should
be feasible and practical as
well will have impact to the
consumers and industries.
1. Market Size
One of the important factors when
evaluating a business opportunity
is market size. Research about
market in your area and figure out
if there is market opportunity and
know how big the market is. In
putting up business, you should
consider the demands of the
people. Is it fitted and will be
needed by your prospect markets?
2. Relationships
Build a good rapport to
prospect investors, markets and
the people around you. Does the
business opportunity have some
relationships? For example, do
you have your connections that
can help you on your business?
If you have someone who is
technically minded that can be
helpful to your business
which can help you run the
business. What is your
relationship with potential
investors or customers? When
you have more relationships,
the opportunity is likely to
run smoothly.
3. Ability to Manage Cash Flow
Next you need to have the
ability of budgeting or know
how to manage cash flow. Is
there a start-up capital for
your business? Is it sufficient
to fund your proposed business?
Capital must be ready and on
hand so you can just ready to
launch out your business in
your planned time. What about
ways to keep funding the
business each month. Figure out
and study how the cash flow
should be managed, and take a
look at your proposed business
plan. You must put on mind how
to sustain your business after
a period time.
4. Management Skillsets
What are the skillsets of those
involved? If you are evaluation
your business opportunity, you
need to be honest about what
you bring to the table, and
what you need to make up for.
This is one of the most
important factors also to
ensure your business support,
the management skills.
How you manage everything in
the business even your work
force and product flows. Think
of this, what skills you have
or they have? Are they
appropriate to the business
you’re in. do your rust the
competency of your work force
to make the opportunity
success?
5. Passion and Persistence
Even if there is a bit lacking of
skills or talent to run your business
as long as you have the passion on it
and persistence to make your business
a successful one then everything is
possible. Remember when evaluating the
viability of the business, you should
also remember the impact of this to
the community and to the consumers. So
then, they will trust your company as
well to gain more possible consumers.
Your attitude matters!
Will you push yourself even
though things get little
dark? If you’ve done your
research, prepared a good
business plan and you are
confidence in your team, then
being able to push through is
vital.
In starting up a business, you
should primary consider how ill it
helps and supply the ends of your
markets. Will this be helpful for
them? A successful business will
have deeper impact on your
consumers’ life and everyday
whereabouts. It is important to gain
their trust for your business to
smoothly operate and the more it has
an impact to individuals the more
you’ll attract customers.
Rubriks sa Pagmamarka
THANK YOU FOR
LISTENING.....