Business Viability Check: Prototyping and Project Down-scaling to avert unforeseen Risks
In the last few weeks, I have made concerted efforts to share tips on how to access funding for creative ideas as an entrepreneur. We have been able to cover bootstrapping, bartering, the TTP Code, borrowing, crowdfunding, the R-currency and Venture capital. I furthered to peek into a practical way of reaching out to the several sources of investors through project pitching.
The very onus of a project pitch is that the entrepreneur be able to communicate his idea in a way that a supposed investor sees it viable in order to win his trust for sponsorship.
Having a good idea is as good as being able to communicate the idea. This is all that pitching is about. An entrepreneur who is expecting any investor to fund must be able to present is idea that wins the investor's trust and makes him feel safe to give out his funds.
However, it is important to note that it is a difficult to convince a man "theoretically" to sink his funds into a project with the "believe" that it would be profitable. Every investor no matte r how close and good is profit. Economists say that profit is the reward of Capital. as such, every financial obligation must promise an increased return (either in cash or kind), else, such projects/idea is not worth the stress. The above therefore forms the basis for our today's discussion on "Business Viability Check."
According to Jean Murray, an experienced business writer and teacher. the viability of a business is measured by its long-term survival and its ability to sustain profits over a period of time. A viable business is that which will be able to survive because it is proven that it will continue to make a profit year after year. Moreover, it tells of the longevity tendency of the business.
Many business experts have tackled the theme of business viability from the perspectove of the entrepreneurs ability to engage his analytical (financial) skills in the project document, however, there has been a deliberate omission of the need for prototyping.
Scalability is one aspect of business development that must not be ignored. The entrepreneur must seek to know whether his business can actually be sun with a far lesser funds from his grand budget at a test-scale. At this stage, the entrepreneur would see the realities of his ideas.
It is crucial that any business outlay that requires a huge fund to startup towards profiting should start at a prototype level. Funding a prototype could be done through bootstrapping as was earlier shared.
The entrepreneur must understand the principle of prototype and growth. At the prototyping level, every unforeseen risk would have been discovered and this would build the confidence of a prospective investor to give his best support with little or no fear of losing his investment.
Entrepreneurs must learn to count up the scale from the base.
I would be glad to share thoughts with you on this subject as well as your experience which could help another. Let's maximize the comments section of this blog post.
