5 questions a feasibility study answers before you open

Before you spend anything on rent or décor, answer these five questions. You can do it yourself, or hire a specialist and add the fee to your capital.

1. Is the location right?

Rent, space, traffic, access and the people who live nearby.

2. Is there demand?

Do people in this particular area want your concept?

3. Who are the competitors?

What are their strengths and weaknesses, and what need are they not meeting?

4. What do the numbers say?

Expected revenue and costs for the first years, the capital needed, the payback period, and your break-even point.

5. What are the risks?

• Strong competition.
• A key ingredient's supply being cut.
• A shortage of the skills you need.

And a plan for each.

If the answers don't convince you, stepping back before you start costs far less than losing money after.