Viability is defined as the ability to survive.
For a business, this is linked to financial performance and position.
A business is viable when either:
- • It is returning a profit that is sufficient to provide a return to the business owner while also meeting its commitments to business creditors.
- • It has sufficient cash resources to sustain itself through a period when it is not returning a profit.
If you are thinking of starting a business, it is important to do your market research, prepare a budget and forecast projections, as accurately as you can. If you are already in business, you have some figures to analyse to determine your business viability.
Please contact me if you need assistance.