Download - The Viability of a Business
Assessing Viability
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Viability is…
… the practical potential of astart-up business idea to surviveand grow in the marketplace
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- Profit- Cost- Price…
…and market share
Parameters of viability
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Gross margin per unit is:
Price-Direct manufacturing cost per unit
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Required sales volume is:
Gross margin Gross margin per unit
= Volume
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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
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