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Running Head: BUSINESS FEASIBILITY REPORT

Business Feasibility Report of Palmer Solution


Student Name
University Name

BUSINESS FEASIBILITY REPORT

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Business Idea

Palmer Solutions is a family owned company that has been inaugurated by dedicated
efforts of three siblings. They came together to offer a range of services including, designing
websites, search engine optimization, business process consulting, graphic designing, and
developing ideas for various business purposes. The main objective is to ensure quality and
unique services are offered to small and medium enterprises. Considering the target market
small medium enterprises, their budget and needs, the prices are kept reasonably cheap. Now
a day, the awareness regarding the importance of IT related media techniques is increasing
rapidly. All the renowned business has established a new e. marketing department to reap the
benefits of SEO and SEM techniques. The profitability projections of this business idea are
promising.
Problem Solved In Media Start-Up
For a company to be successful it is crucial to offer a solution to audience in form of
your product or service. This is exactly what Palmer Solutions has set out to achieve. At the
start the company has to be available where the clients are. Clients of any business are
available on internet sources. To be available to the client as a potential solution provider, a
firm has to create a website and focus on social media platforms. In this twentieth century,
such services are offered at really high prices. This is the problem we would be solving. We
aim to offer social media management, graphic designing, website development and
maintenance services at low prices. It will serve as a major attraction for small and medium
enterprises.
Inability to either respond to change in the industry in timely manner or identify a
problem in business processes or product, results in low profitability or business failure. Neil
Patel (2015) a renowned writer in Forbes magazine states, About 90% of new start-ups fail.

BUSINESS FEASIBILITY REPORT

By offering services including website redesign and business consultancy solution; we would
help businesses in identifying their problems and the possible resolutions that can be
implemented to achieve profitability.
Despite paying good money for web hosting, business site still goes down
sporadically, which ultimately would hurt the business credibility. The main problem is either
in faulty coding or limited bandwidth by Webhosting Company. As majority business owners
lack awareness on website development and related affairs they have little idea on who is to
blame for this problem. This problem would be resolved by our website development and
maintenance services.
Service Offered
The services offered are divided into three categories, namely website services,
business process consulting, and graphic designing. Website services encompass
website/mobile design and development, website maintenance, website redesign, social
media management, e-commerce, and search engine optimization. The services offered in
graphic designing would revolve around logo creation, book cover design, business cards,
flyers, postcards and posters. The business consulting services would include
accounting/bookkeeping, budget management, financial statements/bank reconciliation and
income taxes. In addition to this, the services offered would not only be of promised quality
but would also provide an assurance of profitability on using these techniques.
Market Research
Both type of market research were conducted; primary and secondary data was
collected from various sources. The market trends and needs were carefully monitored and
analysed by the founder himself; this was integral part of the primary information. The

BUSINESS FEASIBILITY REPORT

secondary information had contributed the most in understanding the competitor strengths
and the customer requirements that are not being met. The researches by the businesses
within the industry were used to gain meaningful information. The primary research indicated
the people are more focused on mobile application and need websites to be easy to open on
Smartphone.
The trend of online shopping is increasing with the increase in facilities by the online
shopping websites. The ratio of laggers is decreasing as far as the information technology
industry is concerned. A research by Acquity Group, a digital marketing agency found that in
2014, 80 percent of consumers have privacy concerns with wearable Internet-connected
technologies. About fifty percent of these customers were willing to share personal data
collected and uploaded by such devices when they were offered the irresistible compensation
such as a coupon or discount.
Henning Hagen and Thomas J. Casey (2015) authored an article that concluded that
the margins are increasing with the increase in the competitiveness of the industry due to
continuous change in technology. it is stated that, The competition, in turn, has made
customers more demanding. Other than that in search of revenue companies are moving
towards cloud-based software which is also known as SaaS. SaaS is forecast to outpace
traditional software license delivery by five to one, according to market research by IDC a
market research firm.
Target Market
The target market is small and medium enterprises that have tight budgets to gain
information technology related services. We would offer website development services that
would focus on cloud technology so that the efficiency of the website can be increased and
that too at an affordable price. For the enterprises that are having difficulty in establishing

BUSINESS FEASIBILITY REPORT

and monitoring accounting records and income taxes will be catered. We can also cater
organizations and individuals abroad by offering our services remotely.
Product Detail
The websites will be designed with different programming languages including java,
PHP, SQL, HTML, MATLAB, Fortrain, CSS, C++, and java script. The websites will be
maintained by latest technology servers and hard drives. The use of clouds will also be used
to optimize efficiency and reduce costs. Graphic designing services would be provided by
using latest and trendy software encompassing Adobe Photoshop, powtoons, graphix, coral
draw and many others. The software use would depend on the requirement and specification
of the task assigned. The services offered would be designed using SaaS latest technology so
as to retain customers and add a unique feature.
The business solutions would be offered by latest accounting software. Some of them
are, quickbooks, revel, peachtree complete accounting software, MYOB business essentials
accounting software and netsuite small business accounting software. All the services are
online or internet based except business consultancy and graphic designing services. All the
services are offered or delivered in digital form. Depending on the customer requirement the
service can be applicable on mobile or on web.
The website developed is compatible on any browser, may it be internet explorer, Google
chrome or any other. The device on which site is opened can be a Smartphone or a personal
computer.
Market Analysis
Palmer Solution strength is in adoption of latest technological advancements.

BUSINESS FEASIBILITY REPORT

Weakness identified is that the customer retention rate is not stable. Effort has to be
made in retaining the customer as a satisfied customer is a source of recommendation to a
prospective customer.
Opportunities identified revolve around the adoption of latest technology. With time
the required resources to operate business are decreasing and the overall profitability and
margins are going up. The latest technology like SaaS is remarkable in reducing costs.
Threats have also been analysed. The software industry is rapidly growing. The entry
barriers are decreasing with each new innovation. With the introduction of cloud technology
the use of servers and data storage devices required has decreased. The cost of starting and
I.T firm has decreased tremendously. The presence of online job portals also serve as a
potential threat to the firm as the offshore service providers would complete the task at less
cost due to difference in currency rates of America and developing economies similar to
India.
According to industry analyst Gartner (2013), the size of the worldwide software
industry in 2013 was calculated to be US$407.3 billion, with an increase of 4.8% over 2012.
Competitors
The giants in Silicon Valley are competitors of the firm. Legacy companies including
Yahoo, oracle, SAP, Microsoft and many other; are the names of competitors. The
geographical boundaries are fading away due to the acceptance of offshore or remote services
by experts.
The competitors of the financial services related division are different. Namely
Cincinnati Financial, Erie Indemnity Company and Westamerica Bancorporation are few of
the competitors of this division.

BUSINESS FEASIBILITY REPORT

Profitability and Objective Attainability


The revenues we have earned just within one year are encouraging. We have induced
half of our profit back into the business. The current business growth is satisfactory. Three
employees have been hired to offer quality services to all our esteemed customers. The
customer base is rising gradually. 200 dollar is the price of development of a site. 11,00
dollars are charged for a service of annual subscription. These charges are for the client based
in United States. For customers outside U.S.A are charged accordingly.
The firm has set an objective to attain a profit of two hundred thousand in next two year.
Considering the current company growth, it seems that the target will be achieved and is
attainable.
Revenue Generation
The revenue will be generated by offering services. The payment would have to be
made on the basis of milestones achieved. Depending on the type of job requirements several
milestones will be decided. On completion of these milestones the client will pay 30% of the
remaining payment. The payment would be sent to company bank account.
Potential Obstacles and Solution
The first problem any new company faces is customer acquisition and customer
retention. The strategy firm would be implementing is to simply build a product worth
recommending. For instance if a single user recommends three new users, an exponential
growth will be witnessed. The best way or method of measuring a users likelihood to
recommend our firm is by using the Net Promote Score, it is a simple review chart which is
used to take the comment of current customer. It is a scale of 1-10. The client would be asked,

BUSINESS FEASIBILITY REPORT

how likely are you to recommend our product to a friend? An aggregate score of 9.0 would
mean achievement of exponential growth.
Business Initiation
The business has been initiated about twelve month earlier. The firm was launched in
2014, media coverage was arranged. Different social media tools were used to get this news
heard by majority of target market. LinkedIn, facebook and WordPress are some of
networking tools utilized to spread the word. All the portals where the business client might
be were reached.
Capital Arrangement
All three siblings had put in investment to start the business and develop a website for
the firm.

BUSINESS FEASIBILITY REPORT

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Work Cited

Neil Patel. (2015). 90% of start-ups fail here what you need to know about the 10. Retrieved
from http://www.forbes.com/sites/neilpatel/2015/01/16/90-of-startups-will-fail-heres-whatyou-need-to-know-about-the-10/
Rydholm, Joseph. (2014, October). Trade talk: internet of things study highlights our
conflicted relationship with privacy. Quirks Market Research Reviews, 10. Retrieved from
http://www.quirks.com/articles/2014/20141002.aspx?searchID=623124225&sort=5&pg=1
Casey, Thomas J., Hagen, Henning. (2015). Technology industry trends. Strategy&. Retrieved
from http://www.strategyand.pwc.com/perspectives/2015-technology-trends
Gartner. (2014). Gartner says worldwide software market grew 4.8 percent in 2013. Retrieved
from http://www.gartner.com/newsroom/id/2696317