Is my business idea viable?


People get very complacent when it comes to starting a Business. It usually starts with a great idea, or desire to build on a skill and earn monies for themselves. Agreed? But before you start wouldn’t it be good to know if it would make money, and if so how many items would you need to sell, or hours would you need to work to make it work? The simplest way to look at it, is from the most logical one. What do I need to earn, just to survive? Once you have decided that, divide that sum by 48 weeks, and then by number of days you want to work. e.g. You need to earn £15,000. divide by 48(before you ask, we all need holidays and have sickness!). That gives me a requirement to earn a PROFIT of £312.50 per week, or operating a 5 day week, £62.50 PROFIT a day. (You might also like to take a look at your monthly personal outgoings and visualise those in the context of your need to earn!) It is now easy to visualise what your earnings look like. If you are a builder/tradesman, or anyone that works on a daily rate basis you now have to decide in the real world what is the likelihood in year 1 of working 5 days a week every week? Every day you do not work Your daily profit has to increase to compensate for loss or earning potential. Still with me? We have fixed costs! Vehicle? Vehicle insurance? Road Tax? Liability Insurance? Mobile Phone? Broadband/Internet? Business cards and leaflets? as a minimum! If you add premises then you obviously need to add those costs. You do need to do a spreadsheet to do this, at this stage you are simply Feeling your way before you decide! I hope this helps you? Obviously there is so much more to learn. If you are a Blackpool resident, ring me, Geoff Reeves on 01253 477147 at The FYCreative Centre, 154 Church Street, Blackpool. or you can contact Orvia on 01772422242 and they will assist you across Lancashire as well as Blackpool.

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