Feasibility calculations are essential for any and all ventures
Posted: Wed Jan 22, 2025 9:21 am
Feasibility calculations are essential for any and all ventures, regardless of their size. However, they are extremely rare; and this is also why so many new businesses are closed: they were born to fail: that was the result of the calculation that was not done. That's right! In moments of euphoria, carried away by an idea that seems brilliant, we do not hear our conscience calling us to reason: So what?
Did you do the calculations? Is it feasible in a realistic scenario? Or, despite all the dreaming and good will, the numbers just don't add up, and this adventure is nothing more than a predictable nightmare? It is cyprus bulk sms packages amazing how the rawness of numbers can dispel the fog of dreams and allow us to understand challenges, risks, and scenarios. An example will help a lot.
Let's work with a small, very simple company. It will be easier to understand the basics of capital engineering, which, we insist, is part of the Legal Structuring of Companies , a topic to which we have dedicated ourselves (Editora Atlas, 2024). For large businesses and enterprises, the technology involved is more sophisticated and complex, namely legal technology. But the general idea is the same: to understand the company economically and attest that such an economic mechanism has a probable, sustainable operation. And don't be scared by a spoiler : it is not uncommon for bankruptcy to be declared in these phases of design, analysis, and calculations. What kind of company do you want to create? What kind of company do you want to see structured?
– A small bakery for artisanal cakes.
– Production and store?
– I produce at home; it would be a place to sell.
– Do you have a store location? If not, how much is the rent? How much do you think you should invest in setting up the store? Who will work at the store while you are making cakes? What is the salary? What are the costs of labor and social security obligations? What is your estimated cost of water and electricity? How much does a cake cost? What is the price?
Did you do the calculations? Is it feasible in a realistic scenario? Or, despite all the dreaming and good will, the numbers just don't add up, and this adventure is nothing more than a predictable nightmare? It is cyprus bulk sms packages amazing how the rawness of numbers can dispel the fog of dreams and allow us to understand challenges, risks, and scenarios. An example will help a lot.
Let's work with a small, very simple company. It will be easier to understand the basics of capital engineering, which, we insist, is part of the Legal Structuring of Companies , a topic to which we have dedicated ourselves (Editora Atlas, 2024). For large businesses and enterprises, the technology involved is more sophisticated and complex, namely legal technology. But the general idea is the same: to understand the company economically and attest that such an economic mechanism has a probable, sustainable operation. And don't be scared by a spoiler : it is not uncommon for bankruptcy to be declared in these phases of design, analysis, and calculations. What kind of company do you want to create? What kind of company do you want to see structured?
– A small bakery for artisanal cakes.
– Production and store?
– I produce at home; it would be a place to sell.
– Do you have a store location? If not, how much is the rent? How much do you think you should invest in setting up the store? Who will work at the store while you are making cakes? What is the salary? What are the costs of labor and social security obligations? What is your estimated cost of water and electricity? How much does a cake cost? What is the price?