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Feasibility Study

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

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Feasibility Study

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  1. Feasibility Study The First step in any business plan

  2. Business development planning. Why? “Plans are nothing….Planning is everything”.

  3. 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

  4. Feasibility Study ProposalBreakdown of marks allocation • 35% - Project Concept Definition • 35% - Research Structure • 15% - Time Planning • 15% - Realism of Resource Allocation

  5. Feasibility analysis: Feasibility analysis is the process of: • Determining whether an entrepreneur’s 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 entrepreneur’s 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.

  6. 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.

  7. 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:

  8. Details of Promoter • Name & Address • Work Experience • Qualifications & Educational Background

  9. Project Concept: • Where the concept/project idea came from. • What opportunity currently exists etc • Target market & Customers

  10. Research Proposal • What will be done under this work program • What will be the objective/outcome

  11. Elements of Feasibility Analysis • Three interrelated components • Industry and Market Feasibility Analysis • Product or service Feasibility Analysis • Financial Feasibility

  12. 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 competitorsAssess distribution and sale methods • How crowded the industry is? • What trends are shaping the industry future? • Is the industry as a whole profitable?

  13. 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? • Your will need to do: • Primary Research • Secondary Research • Focus Group • Demographic data • Market Research

  14. 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

  15. Aims of the Feasibility Project • Assess resource requirements to establish project • Prepare comprehensive business plan • Evaluate organisation structure and sources of investment finances

  16. Market Research Checklist • Mkt size • Mkt structure • Mkt trends • Mkt potential • Mkt share

  17. Competitor Research • Competitor activity • Competitor prices • Competitor products / services • Competitor product portfolio analysis (Boston Box)

  18. External Factors Research (PESTEL) • Government Factors • Economic Factors • Demographic Factors • etc

  19. Personal Skills Assessment • 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).

  20. 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?

  21. Thank you • `Q&A

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