“It must be a Profitable Business!”

This is a statement that we hear many a times from “to be” entrepreneurs. They see businessmen doing a specific line of business like textiles, jewellery, bakery etc. and feel that if there many such businesses, then it must be a profitable one. And do the mistake of starting one!

Just because there are many businesses in a same field, or just because a business seems to be very popular or famous, or just because you see lot of people crowding into a shop---does not mean its profitable!

What you see may not be the reality! They might still be in loss, or their return on investment can be too low for you. So how do you know if a business is the right one? Do a financial feasibility study.

In a financial feasibility study you get to study the actual investment needed for up to 10 years, the operational costs in detail, how much of spending on advertising is good and how much is bad, and the potential profit or loss under various sales scenarios. You can know, at what point of sales will the business start making profits- is it after 6 months or 6 years! You can also know what the cash-in-hand status- is it surplus or deficit.

If you cannot do it yourself, hire experts, who can do it for you.

Ameen Ahsan

Ameen Ahsan Strategy Consulting (AASC)

www.ameenahsan.com

Email: [email protected]