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Lecture 1 Definition of Business Feasibility Study. Fanny Widadie, S.P, M.Agr. Education & Training . " A person who graduated, yesterday and stops studying today is uneducated tomorrow.". Fear & Wisdom. "To conquer fear is the beginning of wisdom." (Bertrand Russell).

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education training
Education & Training
  • "A person who graduated, yesterday and stops studying today is uneducated tomorrow."
fear wisdom
Fear & Wisdom
  • "To conquer fear is the beginning of wisdom."
  • (Bertrand Russell)

Feasibility Analysis: Testing an Opportunity

  • Discuss the importance of defining a prospective business by writing a clear and concise business concept.
  • Describe how a feasibility study can be used to test a concept in the marketplace.



Feasibility Analysis: Testing an Opportunity

Business concepts need to be tested in the market.

Once a concept is judged feasible, a business plan will help the entrepreneur develop a strategy for executing the concept.





Studying mechanism

Rule and studying discipline

Definition and activity process

Understanding “Business Feasibility Study”

The importance of investing

The reason studying Business Feasibility

understanding business feasibility study


 Understanding Business Feasibility Study

 Investment understanding

Based on William F. Sharfe,investmentis about sacrificing money now for the money in the future.

 Kinds of investment :

1. real investment2. financial investment

project understanding


Project understanding

GenerallyProjectis a kind of activity which involves many resources that are available within a particular bucket (organization) in a particular period of time to do an activity that has been assigned before or to achieve a particular goal.



 Project’s activities include :

  • Building of new facilities
  • Repairment of current facilities
  • Research and development

 How do projects appear :

  • A market demand
  • To increase a product’s quality
  • Government’s activity
business understanding


Business Understanding

Is an activity or effort that had been done to get benefit based on a purpose and the target business that was done in order to achieve profit according to the goal and the target aimed in many aspects, whether it be quantity or time.

 Profit is the main reason within a business, whether it be short term or long term.

developing a business concept
Developing a Business Concept

Once you have a idea for a new business, define it by writing a clear and concise business concept.

business concepta clear and concise description of a business opportunity; it contains four elements: the product or service, the customer, the benefit, and the distribution

Section 5.1 Feasibility Analysis: Testing an Opportunity

understanding business feasibility study1


Understanding Business Feasibility Study

 An thorough study of an activity or a business that would be undertaken, it is done so in order to decide whether the business is feasible or not to be undertaken.

factors that causes failure in business


Factors That Causes Failure in Business

Data and information that are not sufficient

Not thorough


Wrong direction of work

Environment condition

Element of deliberateness

preventing business failure


Preventing Business Failure

Fulfilling and also the accuracy of data and information taken

Specialist workers that are used are reliable and good

Selecting the right methods and measuring tool.

Loyalty from the Business Feasibility Study team

business benefits


Business Benefits

Achieving profits

 Providing employment

Providing facilities

 Opening geographic isolation

Increasing unity and helping the solidity of development

economy benefits


Economy Benefits

Increasing amount of goods and services

 Increasing the product’s quality

Increase in devisa

 Saving in devisa

the reason studying business feasibility


The Reason Studying Business Feasibility
  • Avoiding non-profitable risks
  • Makes planning easier
  • Makes initiating work easier
  • Makes watching over staff easier
  • Makes controlling easier
organizations that needs business feasibility study


Organizations that needs Business Feasibility Study
  • Business owners
  • Creditor
  • Government
  • The citizen
  • Management
aspects in evaluation


Aspects in Evaluation
  • Law aspect
  • Market and marketing aspect
  • Financial aspect
  • Technic/Operation aspect
  • Management/Organization aspect
  • Sosial economics aspect
  • Environmental issue aspect
evaluation aspect schemes


Evaluation aspect schemes

Law Aspects

Market & Marketing aspects

Financial Aspects





Operation/Technical aspect

Management aspect

Social/Economic aspects

Enviro aspects

steps in business feasibility study


Steps in Business Feasibility Study
  • Acquiring Data and Information
  • Data Processing
  • Data analysing
  • Decision making
  • Reccomendation
steps of business feasibility study scheme


Steps of Business Feasibility Study Scheme

Acquiring Data


Data Analysing

not feasible

Decission Making




Under Taken

data information resources


Data & Information Resources
  • Economic and business publication taken from newspaper and magazine
  • Indonesia bank publication, Unity of private national banks (PERBANAS) and other financial organizations
  • Badan Koordinasi Penanaman Modal (BKPM), Badan Pengelola Pasar Modal (Bapepam)
  • Biro Pusat Statistik (BPS)
  • Asosiasi Industri dan dagang yang membawahi jenis usaha yang sejenis
  • Lembaga-lembaga penelitian seperti LIPI ataupun swasta
  • Departemen Teknis. (mis: jika usaha pertanian maka dari Departemen Pertanian)
  • Universities dan TAFEs
  • Other official resources
  • Make Idea of Business in Agribusiness field and explain how the steps of feasibility analysis
  • Please write succincly the goal of each aspect in feasibility study outline