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Business Feasability Study

Introduction

The Purpose of this assignment is to examine which business enterprise is suitable for me and my partner and to set it against given criteria. The business will need to cover my personal cost and give myself and partner a stable income.   I have set criteria to help me analyse these businesses and have made decisions accordingly.

Criteria
I have decided that I am able to afford a budget of up to £116,000 the resources for this would be made up from:

Value of House £ 195,000
Mortgage balance £   50.000

Total Equity       £145, 000
        -20%         £29.000
                    =     £116.000
By only being able to afford a modest budget that is predominantly raised from equity in my home, I am aware that I am unable to undertake a large project which has greater risks but where the rewards are greater. Therefore a business venture that can be regarded as relatively “safe” would have to be an option, as the fact that the home I live in is connected to the success of the business.   A main goal is that I would like to own the business outright within a relatively short period of time (10 years). Also the experience I have and the time I would need to deploy to the running of the business is also a deciding factor. The suitability for the business and catchment area the proposed business would be situated

The chosen business opportunities are:-

Nursery – I have located a suitable property in Ammanford.   The property is in an ideal location with several schools within a 7mile radius.   The crèche would offer parents a secure and safe location that would accommodate children aged 3 months upwards.
The nursery would offer several options from whole day care, mornings, and afternoons and after school clubs.   The nursery would offer parents the option of collecting children from the family home or the child’s school, a service that no other nurseries offer at present.   In considering this option I realise that I would have to consider...