The day-to-day operations of a business is often times a complex process, which needs to be thought through extensively in order to make it work.  Manpower, Human Resources and Operational Departments are often oversubscribed and start-up entrepreneurs often not equipped to carry out a proper feasibility and business case study of a new project to attract various investments.

We have worked with various private individuals, start-ups, small business owners and even large corporations over many years to develop what we believe to be the correct strategy when conducting a proper feasibility study and develop a business case for investment.

We follow 4 simple phase to collect information, compile a report and provide constructive feedback.  (If we believe a business idea will not work then we will say so.)

Phase 1

  1. Collect information related to Client Specifications
  2. Test Market Appetite for the proposed Product or Service
  3. Conduct Competitor Analysis
  4. Conduct Technical Analysis

Phase 2

  1. Visit Location / Site Analysis (Municipality Approval)
  2. Investigate Licences & Permits, Trademarks & Patents (Legislation Issues)
  3. Conduct Supplier Analysis & Qualification (Per Region)
  4. Socio Economic Impact Assessment/s
  5. Conditions to be met prior to investing in any project

Phase 3

  1. Economic / Financial Analysis
  2. Capital Requirements
  3. Start-up Cost Analysis
  4. Revenue Projections
  5. Gross Profit Margins
  6. Net Income before Taxes (NIBT)
  7. Assess risk accurately through careful analysis of all gathered information

Reporting

  1. Case Study Conclusion

Example

Due to the nature of the services we offer are the details of our clients’ businesses kept confidential.

Situation

A client came to Bizco with an idea that had attracted a few early investors. Teamed up with the potential investor they tasked us with determining the feasibility of a proposed venture. The market was broadly defined as HR departments and the industry fell under “Background Check Services”. The potential monetary and time investment was significant and the viability of the business was uncertain.

Challenge

While substitute products existed, the proposed business idea would be a first in the industry. While this was exciting to see there were no customers or working business models to validate the idea and no legal precedence to confirm the legality of the service. Would customers actually buy at an acceptable price and could the company proceed without the fear of being sued or shut down?

Approach

A consultant with systems integration and also experience selling to the market headed up the team. The team formed an initial hypothesis of the idea from the information given by the client and set out to test it using the 7 domain framework. Consultants then interviewed potential customers, suppliers, partners, media, and sought legal counsel. Surveys were conducted with each client team member being interviewed separately. Research was conducted, financial models developed, and competitive intelligence was collected.

Results

The company did in fact have a large market growing at 40% YOY! The industry proposed challenges of sustaining a competitive advantage as well-funded new entrants with established distribution channels loomed in the background. The team faced the brutal truth that it was missing a key player that could execute on its most important Critical Success Factor: Understanding what the technology can and can’t do now and in the future. Because of the process the client found a more attractive segment to target, they prioritized a list of product features from potential clients that it may not have found until many years and substantial monetary investment later into the business, and a recommended pre-launch social media strategy. The firm is currently executing the strategy in stealth mode as it acquires the necessary talent.

 

Some Case Studies