Aban, Hannah Wynzelle T.

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TBES10 – 0793 01/19/2021

A significant aspect of good business growth is to follow the process of evaluating the
business idea or plan (project), deciding whether to go forward with the project and create a
business if it is agreed to move forward.
Step 1 – Initial Idea Exploration, Identification and Assessment
The root of a new business idea may come from a variety of sources. It may come from
the boardroom of an existing corporation or a group of producers sitting around the kitchen table.
Irrespective of the environment, you may want to use the following approach to formulate a
business idea. Anytime during steps 1 and 2 you may decide that your idea is not viable, in which
case you may want to abandon the idea
→ Form a project committee
Creating a successful project committee requires putting together people who have
the business planning experience required to investigate the idea/concept and carry out
business development if the concept is viable.
→ Formulate general business idea(s) or concept(s)
Define your business idea/concept and explain why it has merit. Your concept may
include filling an unmet need on the market with a new product, delivering an existing
product in a new form, creating a product better or cheaper than rivals, or other ways
in which value can be added. Know, the concept is only feasible if people are willing
to give you what it offers.
→ Identify alternative business models or scenarios for the idea(s)
The business model explains how the business will work in the production and
distribution of the product or service to the consumer. The business scenario is a
rational combination of the basic business elements, beginning with the acquisition of
raw materials and ending with the selling of the finished product, and all the stages in
between.
→ Investigate idea/concept and alternative business scenarios
Conduct an initial informal inquiry into the feasibility of your proposal. Study
scenarios or templates. Early in the process, this could be nothing more than a series
of phone calls to competent individuals. Does your proposal make any sense? Identify
market scenarios/models for further analysis and discard those that are not feasible.
Step 2 - Idea/Concept and Scenario/Model Deliberation and Assessment
→ Further refine the business scenarios/models
If you have carried out any of the structured evaluations mentioned above, you
have knowledge that can be used to further develop your business scenario/models.
→ Conduct feasibility study
A feasibility study will include a thorough and accurate evaluation of the
demand, organizational, technological, management and financial aspects of your
 business project. These considerations will lead to the economic evaluation of your
project.
→ Analyze the feasibility study
When you obtain a feasibility study, the first move is not to start the discussions
about whether to continue with the project. Instead, you need to assess the
completeness and consistency of the analysis.

Step 3 - Go/No-Go Decision

This is the most important step in the entire process of business growth. In a way, this is
the point of no return. Once you start the process of building a company, it's hard to turn back. If
you have unsolved questions or concerns about the idea, you should not proceed. That is why it
is important to have an open, frank and comprehensive debate when making this decision.
This step involves making one of the three possible decisions listed below:

• Decide that the project is viable and move forward with it.

• Decide to do more study and or analyze additional alternatives.

• Decide that the project is not viable and abandon it.

Step 4 – Business Plan Preparation and Implementation

If you decide to start a company, you will need to develop a business plan. A business
plan is an outline or a model of how your business is going to be built. If you have carried out a
feasibility report, it will include some of the details you need for your business plan. Business
preparation most frequently requires the use of consultants.

Step 5 – Business Operations

Now that you've successfully started your value-added business, your work has just begun.
Producer groups sometimes forget that, once a company is established, constant attention is paid
to ensuring that it stays safe and viable.
Operating a company is somewhat different from starting a business. It needs a different set of
abilities. So, the people who set up the company might not be the best people to run the business.