Assessing Viability Viability is… … the practical potential of a start-up business idea to survive and grow in the marketplace.

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Presentation transcript:

Assessing Viability

Viability is… … the practical potential of a start-up business idea to survive and grow in the marketplace

-Profit -Cost -Price… …and market share Parameters of viability

Gross profit margin is… Annual overheads + Required Profit

Gross margin per unit is: Price - Direct manufacturing cost per unit

Required sales volume is: Gross margin Gross margin per unit = Volume

Market share… …Is the slice of the market your business can potentially take from competitors …Is derived from the target market population and the number and size of competitors in the market