It all started in the 3rd quarter of 2008. The eonomy of the world had such a vast hit. Hundreds of thousands of people started being laid off from their corporate jobs, stock markets start to fall down and see their all times lows. Well, I was unfortunately one of the victims of that period. None of us in fact realized what was to come, or even worse, we didn't even realize what started. Now, it is 2011 and nothing has in fact changed.
The credit rating of the U.S. has been downgraded for the first time to AA+ from it is all time position of AAA. Many countries going bankrupt one another and riots, even looting, are spread all across the world. Who most negatively got affected from these series of events are the very backbones of our economy; small business owners. The families of the small business owners, students who have brilliant business ideas, entrepreneurs who are seeking funds to make it happen, simply all of us.
Now, it is a different economical world out there. It is time to analyze financial statements.We should validate our business plan many times before acting on anything and spending dollars on it. We have to make sure that there is demand out there and most importantly our company is on solid financial grounds.
How to make sure that the business idea we created is valid? The answer is simple; feasibility study. We are no longer in the era of launching a business without feasibility study and await clients to come to us. When the economy is healthy, consumption is at high levels and it is relatively easier to find clients. The world is different now. We have got to ensure that the market exists and analyze our financial statements effectively even before starting up the firm, and incorporate it into our business plans.
Without analyzing our business plan, launching a new company at this economy is shooting in the dark, or even worse; gambling.
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