Transcript
Page 1: The Viability of a Business

Assessing Viability

Page 2: The Viability of a Business

www.business.govt.nz

Viability is…

… the practical potential of astart-up business idea to surviveand grow in the marketplace

Page 3: The Viability of a Business

www.business.govt.nz

- Profit- Cost- Price…

…and market share

Parameters of viability

Page 4: The Viability of a Business

www.business.govt.nz

Gross profit margin is…

Page 5: The Viability of a Business

www.business.govt.nz

Gross margin per unit is:

Price-Direct manufacturing cost per unit

Page 6: The Viability of a Business

www.business.govt.nz

Required sales volume is:

Gross margin Gross margin per unit

= Volume

Page 7: The Viability of a Business

www.business.govt.nz

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

Page 8: The Viability of a Business

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