It is important to test the feasibility of a business idea before implementing it so that you can identify the strong and/weak points of the concept. Testing whether a business is feasible before working on the idea will save you extreme economic tension and frustration later. This paper is an analysis of the feasibility of Look No Further Company by looking into the key aspects that determine business feasibility.
The first step in determining the feasibility of any Company is to check if there is a market for its products/services. The benefit that Look No Further has is that the market for Eyewear is an increasingly growing and demanding market in the US. The number of eyewear sold in the country has been increasing annually. The target market for this prospective Company is the Los Angeles area and then expand to other regions with time. According to the business plan, proper statistics have been carried out to show that there is an approximate population of 2,029,780 men and women who are in search of functional eyewear with a stylish design.
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The next factor to keep in mind when testing for feasibility is the possibility for future growth. The Company is set to start at Los Angeles and then expand to other areas with time. According to the business plan, it is projected that the business will achieve a 10% increase in sales and a 2% rise in the rent price within the next three years. It is, therefore, evident that this business takes into account any potential fluctuations in the product availability and market share.
So, what makes this business stand out? Look No Further provides high-quality reading glasses at an affordable price on a subscription or individual purchase basis. The business provides multiple distribution services compared to its competitors, and this is appealing to a larger consumer base. The business also offers convenience and boosts its brand recognition by opening joints in popular locations to help suit people on the run. Besides, the business sources its raw materials and labor at a low cost, which enables it to offer competitive pricing and excellent quality.
Financial analysis is another important factor when it comes to determining the feasibility of a business. The Company already has a starting capital of $100,000 by four partners whose equity is defined. The business plan outlines the projected sales and operating expenses per year, and it leaves a total projected profit of $386,990 if the subscriptions and sales meet the projected funds. This profit is impressive considering that this is a startup. It is impressive to note that Look No Further is keen on how it will be using its funds, with all efforts directed towards having the least expenses possible. Projections hold that the business is likely to reach its breakeven point by the end of the second quarter of their first year in operation, which is reasonable. For the business to be viable, the price of the eyewear will range from $35 to $45 per pair, which is affordable to the target population (people aged 55 years and above). Statistics show that this target population has disposable income that could be spent on the eyewear.
After reviewing these factors, it is evident that Look No Further seems a very feasible business. The business is set to fill a gap in the market because it designs eyewear according to the customers’ taste and preferences, which makes it a trustworthy brand for the target market. The projected amounts are also reasonable, and the business is likely to be profitable if it adheres to the set finances. A look at the business plan shows that there is extensive research in place for the implementation of Look No Further , which positions it to achieve success and growth in the future.
References
5 Conditions That Make a Business Opportunity Feasible | ProfitableVenture . (2018). Profitableventure.com . Retrieved 7 March 2018, from https://www.profitableventure.com/conditions-business-opportunity-feasible/
Is your business idea feasible? . (2018). Smarta.com . Retrieved 7 March 2018, from http://www.smarta.com/advice/starting-up/business-ideas/is-your-business-idea-feasible/
Katz, J. A. (2009). Entrepreneurial small business.
Somerset, D. (2018). How to Calculate Business Feasibility . Bizfluent . Retrieved 7 March 2018, from https://bizfluent.com/how-7622939-calculate-business-feasibility.html
