Feasibility Study for your Proposed Business

1. Describe
a. the service
b. how customers will use and buy the service/product
c. the key components of the service/product (including technology), how
they will be sourced, and how available they are
d. how you plan to test the effectiveness of the service/product
e. plans to upgrade/expand the service/product
a. Delivery
b. Expand to other gyms.
c. Widen target market. Explore more menu options and low-end
gyms
2. Define and describe the target market. Use a survey or focus group discussion
(FGD) to get feedback from potential consumers
a. How and why would they pay for the service/product
b. What are the projected needs the service/product fulfills
c. How big the demand is, and what is your evidence for claiming this
3. Define and describe the competition.
a. Their market share
b. Their service/product and market focus
c. Their strategies, strengths, weaknesses
4. How different is your service from the competition
a. How easily your service/product can be copied
b. Describe any technology involved, its availability, and the ease of
replication
5. Financial feasibility
a. Fixed costs (FC): Capital outlay (include how you will fund this, e.g.,
investors, loan)
b. Variable costs (VC): Recurring expenditures that are absorbed with each
unit (product or service) sold (e.g., raw materials, salaries, rental, etc.)
c. Price of your product or service:
cost-based pricing (e.g., Unit cost=FC+VC+Profit)
price-based costing
d. Annual income projections (Price
e. Break-even analysis
Zero loss zero profit
How long before costs equals profit all your expenditures?)
Breakeven Point = Fixed Costs/(Unit Selling Price - Variable Costs)
f. Cost-benefit analysis (viable return on investment)