How to determine the feasibility of the project

entrepreneurship can not be able to succeed, but not a sudden idea can start a business, there are many factors for successful entrepreneurial investigation. Now in the rise of entrepreneurship, entrepreneurship is a common way to join, because most of these companies have mature mechanism, to a certain extent reduces the business risk, so how to judge the financial feasibility of the project?

how to determine the feasibility of financial projects:

first to define what is the business model. There are a number of definitions of the term, which I most agree with Harvard Business School professor Clayton · the definition of Christensen: business model is how to create and deliver customer value and corporate value system. On this basis, I also made a little supplement, business model is a creation, transmission, support and access to the value of the system. The value of the products and services related to marketing and channel transfer value, the support value related to the core resources and organizational ability, to obtain the value related to the cost structure and profit model, these four dimensions basically involves all aspects of business operations.

subdivision, a business model includes four elements: customer value proposition, profit model, key resources and critical processes. If you want to use a few questions to determine whether an entrepreneurial project is reliable, you can ask the following four questions: first, what specific customers can you bring what value? Second, do you have the resources and ability to create value for customers? Third, your profit model (income structure and cost structure)? Fourth, how do you continue to create value for customers and companies?

The purpose of

enterprise is to create customers. So the first group of companies to face is: who are your target customers? What do you satisfy their needs? For start-up companies, although these two questions, the more clearly the better, and the need to use facts as soon as possible to verify the reasonableness of these two assumptions. Many entrepreneurial projects of the customer needs are entrepreneurs themselves out of the imagination, often not real existence, such a project is basically no doubt, even lucky to get the investment, that is, burn that stop.

even if there is a clear customer value proposition, if there is not enough resources and capabilities, the idea can not become a reality. Here are the main indicators of hard resources, including financial strength, market channels and core technology, the ability is relatively soft, including the core team, corporate culture and governance structure and other organizational capabilities. The company’s resources and capabilities are generally inadequate, so we must focus on the early stages of the entrepreneurial strategy, seeking a single point of breakthrough, and then continue to copy the advantages, to seek a breakthrough.

this is often easy to ignore a lot of entrepreneurs. They tend to be a key source of connections, but also overestimated the power of the network, the lack of products and services to create, nor set up its group >

Leave a Reply

Your email address will not be published. Required fields are marked *