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.