As part of business immigration for UK, the business plan for immigration application should be viable, innovative and scalable. Viability of a business is its ability to start, grow and survive. Most of the start-ups find it difficult to start, consolidate and scale and remain small throughout their existence.
Consumer willingness and ability to buy goods or services
The viable business plan starts with a product or services that prospective clients or customers are willing and able to buy from the business. Most of the markets are competitive markets with high level of competition. Competitive markets are characterized by products which are close substitute and customer have greater tendency to buy goods and services from businesses who offer innovative products and services against the price they receive. And therefore, it is very important that a startup company should consider different aspect of the product or services and make it unique by focusing on customer preferences and economic efficiency to bring unique product that provide a competitive advantage and ultimately viability of the business.
Before starting a business, the entrepreneur should go through the industry analysis reports of various professional bodies, trade bodies, trade associations and regulating agencies. These reports discuss on going issues and trends in the industry. Get an idea about the industry participants, number of employments supported by the industry both direct fulltime equivalents and shadow employment, average size of the firms, their economic contributions, economic value added by marginal entrants, industry trends, willingness and ability to respond to innovations in the industry etc. An initial study of the industry will reveal about the prospective services or products required by the industry which is more likely to be demanded then offering services without industry know how.
Surviving competition is an important element of a viability of a business idea. Before starting the business, a market research will reveal the competition and saturation level in the market, market structure, market trends, issues in the markets, customer satiation and price they are willing to pay, competitors pricing and marketing activities and their willingness and ability to scale, product or service variations, lacuna in relevant markets etc. A location analysis should be done before commencement of the business. An exploratory visit would reveal nearby competitors, customers revealed preferences about the products and services offered by the competition, market gap, up ward and down ward economic linkage in given product or services line.
Viability of a business should also be considered in monetary terms. Whether the business could generate enough revenue to support the running expenses including wages, rents and business rates, marketing and advertising costs, utilities, maintenance, returns to investors and contributors, taxes, and profits for entrepreneur. An analysis of resource requirement for running the business would reveal the expected startup capital. A startup capital should consider legal and professional fees, initial marketing cost, current assets including equipment, inventory, etc., vehicles required to perform business activities, reserves for wages and rents. At least financial model should consider monetary aspect of the business in near future such as three to five years period.