5 minutes

Entrepreneurs or dreamers

Muhammad Salem Al Ali

02 June 2022

In a friendly session accompanied by quiet music in a café, a man turned to his owner next to him, saying, “Now I had an idea for a profitable project that would generate a lot of money for us.” Moqbel will change their lives and the lives of everyone around them for several decades.

Thus, during the same session, enthusiasm arose and the decision was taken, and on the next day the eye was rented and the required papers and licenses were issued. On the third day, the grand opening was attended by dozens, and the horizons and echoes were filled with it.

Of course, the continuation of the story is almost expected by everyone, especially what happened on the fourth day, which was the closure of the project and the exchange of blame and suspicions. The money went and the project lost. As for the two friends, today they are opponents that are united only by the courts.

There is no doubt that the entrepreneur is an enterprising man, a dreamer and an innovator, and this is something I agree with everyone. However, the main point that some people are ignorant of is the issue of the economic feasibility study, as it is the best way to verify the potential results of the project.

That is, the success of the entrepreneur is achieved only when he discovers how to turn his idea into a profitable reality.

Certainly, the major companies have followed this approach for ages, and they have realized the value of this tool in determining the safety of business and measuring its profitability even before it saw the light.

The same applies to many small and medium-sized enterprises established by successful entrepreneurs;

But there are still those who still hesitate to enter this battle, and they are many in fact. Some of them tell you that feasibility studies are an expensive issue that burdens the project, and another tells you that the proposed business model actually exists and is guaranteed profitability. As for the strangest thing, it is the one who assures you that Feasibility studies are nothing but a waste of time and a means invented by the consultants to earn money, and that he is able by himself, and through a simple calculation, to touch the market and identify its prospects.

Let us move away from that and that to confirm the glaring fact that the analysis of the business structure itself along with the financial study and market analysis are the main pillars when making an investment decision;

Market assessment would understand competitors and study the nature of their business, and thus determine the competitiveness and feasibility of the proposed product or service;

It will also inevitably help in determining the appropriate location, estimating demand, and setting pricing mechanisms;

As for the financial study, it will deal with the balance of revenues and expenditures, calculating the initial and operational costs, and linking them with revenues and funding sources;

Finally comes the work structure and its organizational structures, including the identification of staffing requirements and team building, and then the design and governance of management, leading to the development of timelines associated with the development of the project.

It is also important to address all the internal and external factors that may affect the project in the short and long term, take into account the environmental impacts, if any, and delve into the narration of the various scenarios and the assumptions and introductions that lead to them;

Studies have always shown, during their progress, major and unexpected obstacles that necessitated the cancellation of the project or a change in its compass.

What I hoped to conclude is that the feasibility studies are expensive and take a long time for huge investments, but the matter is completely different for entrepreneurs. The numbers are reasonable and acceptable and commensurate with their budgets and the size of their projects;

There is no harm in a neutral professional analysis that preserves their money and achieves their dreams.

Founder of Suhail Smart Solutions

To read the previous articles of the writer please click on its name.