It's tempting to think that it in a $400,000 build or fit out you might be able to save a little bit here and there. The cost of a feasibility study, depending on who you use, ranges from a couple of thousand to a fair chunk of change, and it's tempting to think you can skip it.
Just like you wouldn’t attempt a complex recipe without a set of instructions, you can spend a lot of money in the wrong place, without the right information. As two professional advisers working exclusively in the medical, health care and ageing Industries, with expertise in business development and building creation, we encourage you not to do it without doing your homework first. Think about how much you could lose if you get it wrong.
Here's what a proper feasibility study should tell you:
- Is there sufficient demand for your services in the location you're considering?
- Who are your existing competitors, and what is the current and projected future demand on their services?
- Where, within your desired area, is the best location for your business?
- Is your nominated site feasible and affordable? Are there any council restrictions?
- What are the rental rates you can expect? What should you charge your sub tenants?
A good feasibility study informs you as the owner or tenant, of the need in the area, and can inform you how to best structure your services. This can help to ensure you can optimise your cash flow.
Even better, if you engage our services, we can also provide cash flow projections, a great way to plan for, and understand how your business will travel at the start.
Critical things for the medical business owner to know.