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Aspects of Business feasibility study

Aspects of Business feasibility study

To achieve a strong conclusion about whether or not a business idea is conducted, deep business feasibility study needs to be done in some aspects of business feasibility:

A. Legal aspects

The legal aspect analyzes the ability of businesses in fulfilling the legal and licensing requirements required to conduct business in certain territories.

B. Environmental aspects

Environmental aspects analyse the suitability of the environment (both operational environment, close environment, and Remote Environment) with the idea of business that Alan executed. In this aspect the business impacts for the environment are also analyzed.

C. Market and marketing aspects

The market aspect analyzes market potential, competition intensity, market share achievable, and analyzes marketing strategies that can be used to achieve the expected market share.

D. Technical and technological aspects
The technical aspect analyzes the technical readiness and availability of technology needed to run the business.

E. Aspects of management and human resources

Aspects of management and human resources analyze the stages of business implementation and readiness of manpower, both the abusive workforce and the skilled manpower required to run the business.

F. Financial aspects

Financial aspects analyze the cost of investment and working capital as well as the level of return on investment from the business to be executed.
The analysis of the aspects of the business feasibility study has a relation between the aspects of one and the other aspects. Therefore, mistakes or inaccuracy in one aspect will affect the analysis of the study

Aspects of Business feasibility study 


Based on the image market and marketing aspects have an association with the value of sales projections, while the legal aspects, environmental, technical and technological, and aspects of management and human resources have linkages with the projected costs on Income statement. Projected sales are reduced by cost projections will result in profit/loss projections. The cost of the company can be sourced from its own debt and capital so that the cost will affect the side of the liability in the projection of the company balance.

The sales Projectionwill be related to the projected cash in, while the projected cost will be related to the cash out projection. Msuk Cash flow projection minus the projection of outgoing cash flows will result in net cash flow projections. This net cash flow is used to conduct feasibility analysis on financial aspects.

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