Feasibility Study

The First step in any business plan

Business development planning. Why?

Plans are nothing.Planning is everything.

Feasibility Study Proposal

   

Worth 25% of subject 1,500 words Must outline the Project Concept and the proposed research plan Project management & time management are key skills to develop for this challenge

Feasibility Study Proposal Breakdown of marks allocation

   

35% - Project Concept Definition 35% - Research Structure 15% - Time Planning 15% - Realism of Resource Allocation

Feasibility analysis:
Feasibility analysis is the process of:
Determining

whether an entrepreneurs idea is a viable foundation for creating a successful business. Is to determine whether a business idea is worth pursuing. If the idea passes the feasibility analysis, the entrepreneurs next step is to build a solid business plan for capitalizing on the idea. It is not the same as a business plan, both play important but separate roles in the start up process.

Feasibility analysis:
Feasibility study:
Answers the questions Should we proceed with this business Idea Its role is to serve as a filter, screening out ideas that lack the potential for building a successful business, before an entrepreneur commits the necessary resources to building a business plan.

Overview:
The Feasibility Study is designed to enable companies and entrepreneurs establish if a project concept has commercial potential, what resources are necessary to achieve commercial reality and to prepare a business plan detailing the steps necessary to implement the project. Your feasibility study should include:

Details of Promoter
  

Name & Address Work Experience Qualifications & Educational Background

Project Concept:

  

Where the concept/project idea came from. What opportunity currently exists etc Target market & Customers

Research Proposal
 

What will be done under this work program What will be the objective/outcome

Elements of Feasibility Analysis



Three interrelated components

Industry and Market Feasibility Analysis Product or service Feasibility Analysis Financial Feasibility

Elements of Feasibility study

Industry and Market Feasibility: The main aims of the feasibility project are to:
     

Establish the size, structure and dynamics of the market for the product/service Profile potential customers in terms of sector, spend, requirements etc. Profile competing products and competitors Assess distribution and sale methods How crowded the industry is? What trends are shaping the industry future? Is the industry as a whole profitable?

Elements of the Feasibility Study



Product or service feasibility



Determine the degree to which a product or service idea appeals to potential customers and identifies the resources necessary to produce the product or provide the service It addresses two questions:
 

Are customers willing to purchase our goods and services? Can we provide the product or service to customers at a profit? Primary Research Secondary Research Focus Group Demographic data Market Research

Your will need to do:

    

Elements of the Feasibility Study



Financial Feasibility Analysis:



The financial feasibility analysis involves assessing the financial feasibility of the proposed business venture. Capital Requirement Estimated Earning ROI

  

Aims of the Feasibility Project

  

Assess resource requirements to establish project Prepare comprehensive business plan Evaluate organisation structure and sources of investment finances

Market Research Checklist

    

Mkt size Mkt structure Mkt trends Mkt potential Mkt share

Competitor Research
   

Competitor activity Competitor prices Competitor products / services Competitor product portfolio analysis (Boston Box)

External Factors Research (PESTEL)

   

Government Factors Economic Factors Demographic Factors etc

Personal Skills Assessment

  1. 2. 3.

Training needs analysis Three types of skill sets required; Training in start up analysis and planning (research etc) Traning in start-up management and operations On-going business mgt skills (post systemisation).

Gap analysis
    

List your skills List your experience What skills are required for the planned business? Where are the gaps? How do I bridge them?

Thank you

`Q&A