Monday, May 18, 2009

Ensure viability first

I met with the members of a newly formed CC last week - their plan is to start a business that manufactures toilet paper, detergents & soaps. They had completed a business plan but unfortunately it had very little research information on the market environment (particularly competition) and the production process.

My suggestion to them was to undertake a thorough viability exercise on their proposed business & if it still made sense, proceed with putting together a comprehensive business plan - they had estimated they would need to raise +/- R 1.2m to get the business going. With this sort of commitment, rather spend some money upfront to satisfy yourself it is a viable undertaking.

One can always approach a SEDA (Small Enterprise Development Agency) in your area who may assist with subsidising the cost of a viability study and business plan should your application be approved.

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