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Evaluate your business idea part 2

By admin
28 September 2013

Anyone wanting to go into business should approach Khula Enterprise, which has offices in all provinces. Call their help line on 0800 11 88 15 and they will tell you where the office is nearest to you.  

Step 3

After looking at your potential clients and at what your competition is doing, work out how many items you can sell. Be realistic. Take the number of items you think you can sell per month and multiply it by the price you will ask.

Step 4

Will you need extra equipment or additional staff to be able to produce the number of items you have worked out in step 3? How much will this cost per month? What is the total amount of money your business needs to operate per month?

Step 5

Subtract the amount of money you got in step 3 from the amount you got in step 4. If the answer a positive, this will be the profit you will make.

Step 6

Ask yourself critically: is your business idea making sense? Will you make money? It is no use borrowing big amounts of funds if you do not have a market. Research will show that your current idea might not be worthwhile expanding, possibly due to lack of customers.