Up to now you have chosen an idea, measured demand and studied the competition. The last question before writing a venture plan is the most important: is this venture viable? A viable venture is one that can realistically start, operate and earn enough to keep going. Answering honestly now saves you from putting money and months into a business that was never going to work. Saying "not yet" or "no" to an idea is a good business decision, not a failure.
Services a venture needs
No entrepreneur does everything alone. Even a small venture relies on outside services, and each one adds a cost that must be included in planning.
| Service | What it provides | Impact on the venture |
|---|---|---|
| Accounting | Bookkeeping, financial statements, tax filing and advice on HST registration | Keeps records accurate and avoids tax penalties; costs a fee, or time if done yourself |
| Legal | Advice on contracts, business-name registration, liability and choosing a form of ownership | Prevents costly disputes; a lawyer's fee is usually charged by the hour |
| Banking | A business account, payment processing (debit, credit, tap), loans | Keeps business money separate from personal money; monthly and transaction fees reduce profit |
| Insurance | Protection against liability claims, theft, damage | Protects against one accident wiping out the venture; adds a regular premium |
| Consulting | Expert advice from mentors, business advisers or small-business centres | Helps avoid beginner mistakes; may be free through community programs or paid |
| Web services | Domain name, website hosting, online store, social media tools | Reaches more customers and takes online orders; adds monthly fees |
HST registration
In Canada, a business must register to collect GST/HST once its taxable sales go over $30,000 in four consecutive calendar quarters. Most student ventures stay under this small-supplier limit, but an accountant can confirm when registration is required.
The viability checklist
Viability is judged on six areas. Each one can stop a venture on its own, so they are checked one at a time, with evidence from your research.
- Start-up capital: is the money needed to start available, from savings, family or a small loan?
- Size of target market: are there enough customers, based on your demand estimate, to cover costs?
- Technological feasibility: can the product be made or the service delivered with the equipment and technology you can access?
- Personal skills and interests: do you have the skills, and enough interest to keep going when it gets hard?
- Regulations: can the venture meet the laws and rules that apply, such as school rules, municipal licences or food-safety requirements?
- Competition: can the venture win enough customers from direct and indirect competitors?
| Decision | When to use it | What happens next |
|---|---|---|
| Go | Every check passes, or any concern is minor | Write the venture plan and prepare to launch |
| Revise | One or more checks fail, but each can be fixed by changing the idea | Change the idea (smaller scale, different product, different customers) and recheck |
| No-go | A check fails that cannot realistically be fixed | Drop the idea and return to the decision matrix for the next-best option |
Worked checklist: the Tech Help Desk
| Check | Evidence | Result |
|---|---|---|
| Start-up capital | Needs $150 for a sign, cleaning supplies, a cash box and a card reader; team has $200 saved | Pass |
| Target-market size | Cautious estimate of 360 sessions per semester, about $1,800 revenue | Pass |
| Technological feasibility | Team can fix software and settings problems; cannot repair cracked screens | Pass, if hardware repairs are excluded |
| Personal skills and interests | All four members enjoy tech and have helped family for years | Pass |
| Regulations | Needs school approval to sell on site and a written privacy promise not to open personal files | Concern: fixable |
| Competition | Free online videos are a strong substitute; the nearby repair shop focuses on hardware | Pass, competing on convenience |