Do you have a developed idea and have possibly started a business but are pre-revenue or are looking to buy a business and are looking to :
If you want to know whether your business idea is one that has a chance of being financially viable before you make the commitment to move forward, then a feasibility study is the right service for you.
The goal of a feasibility study is for a business to determine if their idea can generate revenue and is economically sound. A feasibility study cannot ensure the success of the business as most of that depends on you as the business leader, but it will determine if based on the market if the products and services, the startup and operating costs, your organization, and operation as defined make sense.
A feasibility study will determine the break even point of your business which will help you determine how much revenue needs to be generated to cover your projected operating expenses. It will also look at how much of an investment or financing is required to cover your start-up costs plus any additional time required while you are setting up and are not generating revenue.
A feasibility study will look at your defined target market and market size as well as analyze your 3 top competitors. Your organizational and operational requirements are also taken into consideration in order to develop a 5-year financial model. The financial model generates your proforma financial statements which could be provided to an investor or lender. Proforma statements are projected forward-looking financials which include an income statement, balance sheet, and cash flow statement.
A feasibility study is not a market research project. We assume that you have an understanding of your industry and market before engaging in a feasibility study. We can help you with assumptions and sizing, but it is expected that you understand who you are targeting including industries, demographics, and geographies. We utilize the information provided for analysis. If you do require market research on your industry, your competition, your target market, or geographies, we can provide you a quotation, as this is not covered as part of this engagement.
Our value add with the development of a feasibility study is that we do not just offer financial statements which a bank or investor has to try to figure out how the numbers were obtained.The proforma financial statements are obtained through a creation of a financial model which based on the data from your feasibility study which adds credibility to the proforma financial statements when seen by a lender or investor. A financial model is an Excel workbook that contains all of the assumptions for your particular business which are used to generate the financial statements. This is dependent on the business but contains start-up costs, operating expenses, products and services forecast with all pricing models and sales channels, the investment required, the owner's equity, along with organizational structure and costs. You can use this tool down the road to perform "what if analysis" on your business.
To find out more about the services listed above, please fill in the contact us form and we will set up a phone-call with you to discuss your individual business requirements. We are not able to provide an accurate quotation until we understand your individual business with the exception of business coaching, which is based on our hourly rates. All of our services are offered on a fixed price not to exceed basis. Once we have provided a quotation, it will be honoured, even if the engagement takes longer than quoted. This way you know exactly the costs and there are no hidden fees. The only exception to this rule is if the scope of the engagement changes. If this is the case the contract will include an addendum for the additional services.
We offer a 30-minute free consultation to Canadian businesses to gain some guidance for your business that you plan to start or purchase. If you would like to sign-up, please click the link below and select 2-3 times that work for you. Your time will be confirmed and a business coach/consultant will call you at the designated time. Be sure to be available as we will call you at the time you selected. If we cannot reach you at that time, you will need to reschedule as there will be times booked afterward for other businesses.