Innovation & Entrepreneurship Institute

8th Annual Feasibility Study Competition




The purpose of the new venture feasibility study is to identify the most promising business opportunities. Operations Plan 7. regarding all submissions as the intellectual property of the submittors. Winning feasibility studies will prove that the business idea is both innovative and workable. submissions are shredded and destroyed. Winning entries will be publicized in Temple and external Teams may include members without ties to Temple. who are committed to keeping the utmost confidentiality and privacy. please bear in mind that it needs to address the criteria identified under “Guidelines” below: 1. Exit Strategy 10. Development Plan 8. We suggest the following 5-6-page submission format. No copies of submitted material are faculty. and senior executives. provided that the person with the Temple affiliation is the business founder/lead executive/chief The Feasibility Study Competition is the second stage of the Temple University Business Innovation Competition. Company Overview 2. All ideas and business plans are viewed only by IEI professional staff and competition judges. Distribution and Sales Strategy 6. Product/Service Description 3. January 17. if not picked up by authors within one month after the competition.temple. 2006 Registration: Submit online at www. Financial Estimates Judging and Confidentiality Submissions will be judged by a panel of experienced entrepreneurs. It is open to students. Industry and Marketplace Analysis 4. . All concepts remain the property of the submittor and are neither released nor discussed with anyone other than IEI professional staff and judges without the express permission of the author. Management Team 9.temple. investors. staff and alumni of Temple University. Marketing Strategy 5. Participants may be individuals or teams. consultants. www. Please see additional eligibility information on our Competitions home page.Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition Feasibility Study Competition Guidelines Deadline: Tuesday.

) • Keep the length to 5. but certainly no more than six pages.Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition Awards Feasibility Plan Competition winners are eligible for cash and in-kind prizes and use of the Innovation Lab to prepare for the Business Plan stage of the annual Business Innovation Competition. emphasis or style. with appropriate contingency plans. Guidelines Winning studies will convince the judges that your idea could work. 12pt Times/Arial font . suppliers. etc? Is the founding team qualified and sufficiently experienced to launch the business? • Revenue Model • • • Is the revenue generation plan reasonable and well-thought-out? Are the major financial assumptions reasonable given current market conditions? Are the financial projections realistic? Tips Use the Feasibility Study Outline as checklist. single-spaced. no two studies are ever alike in content. suppliers? What is the competitive advantage over existing solutions? Implementation Plan • • Is the business operationally feasible? Have the major operational risks been identified. intellectual property protection. possible partners. typed. in regards to market entry barriers. (But remember. Judges will consider the following: Market Opportunity • • • • • Is the value proposition sound? What is your “unique selling proposition”? Is there a market for your product or service? How innovative and well-thought-out is your product or service? Is your target market clearly identified and sufficiently large? Who are the key market players – competitors. funding.

models or pictures to help condense your argument . iei@temple. but needs some help. estimates.without sacrificing detail (must be included in the page limit). Support claims with evidence.and document all quotes. please contact: Innovation & Entrepreneurship Institute Fox School of Business. etc. 201 Speakman Hall 215-204-3082. Support all numbers with documented sources. diagrams. Have an idea but need other expertise on your team? Check out the Team Builder Bulletin Board.Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition • • Make the study compelling. Feasibility studies must convince readers that the idea could work. Also check here to see if you can team up with someone who already has a great idea. Consider using numbers. Make your case clear and to the point. • • For questions or further information. Use credible sources and methods .edu .

but for the feasibility study the focus is on getting the design right and testing its coherence. and clearly written. In subsequent steps.judge whether an idea is viable. Operations Plan 7. Function of a Feasibility Study Feasibility studies help entrepreneurs . Product/Service Description 3. concept and entrepreneurial team that fits your business.and the more likely it is that your business will succeed. the study should be very carefully thought through. use your best judgment to answer all of the questions and complete all of the worksheets. rather than on convincing investors and other partners to extend their support. you will be investigating and developing these issues in depth. In this initial stage. A feasibility study should at least touch on most issues included in the final business plan. It is your first reality check. begin to define the scope of your business.and their supporters . Exit Strategy 10.before jumping into more detailed study. Nonetheless.Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition New Venture Feasibility Analysis Although every feasibility study should reflect the particular combination of opportunity. clarity and evidence are more important for the feasibility study than convincing presentation. Company Overview 2. extraordinarily well documented. Financial Estimates The attached worksheets will help to guide you through this initial look at your business. (The marketplace will be the real check. Feasibility Plan Narrative The feasibility study is not a formal document but it is a very important one. Development Plan 8. it is important to consider the full range of issues you might face . and to visit each of the principal parts of your prospective plan: 1.) As such. Marketing Strategy 5. The first step in creating a business plan is to outline your concept. Management Team 9. understand that you will have very little of the information needed to build a solid business plan. Industry and Marketplace Analysis 4.a thought experiment in what could go wrong and what needs to go right for an enterprise to take root and grow. . The process of preparing a feasibility study is a testing process . Thus. Preparing a feasibility study requires a tremendous amount of research and thinking which often lead to significant changes in the original idea. The good news is that the stronger the feasibility study the easier the business study is to write . of course. Distribution and Sales Strategy 6.

sole proprietorship. Company Overview The Company Overview is a brief description of the company you have founded or want to found. the reader should have a good idea of where you are and where you are going with your company. partnership. franchise it…) What is the exit strategy for ourselves and for our investors (sell to a larger company.Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition Company Name: _____________________________________________ Team Members: ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ 1. How will it be organized? Will it be a sole proprietorship. or will it be forming? How is our company organized (e. corporation…)? What is our overall strategy and what objectives do we have? What are our goals for the company (keep it small. merge.g. go public. buy out investors…) . or corporation? What are your ambitions for the company? Will it always be a small company. or do you want to grow it into a national or an international giant? Upon reading this section. partnership. grow it big. What is the name of our company? Does it company currently exist. limited liability company..

What is the unique selling proposition (USP) of our product/service? What are its features and benefits? Do we have any proprietary rights to the product/service (for example. What exactly is our product or service? What isn't it? Carefully describe. patents. and how is it different? . so be sure to explain and describe it carefully. You should not assume that the reader is familiar with your product/service.Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition 2.)? Why is our product/service superior to the competition. etc. Product/Service Description The Product and Services section is a detailed description of the products and/or services you will be selling. copyrights. technology.

you and your readers should understand the dynamics. and opportunities driving your industry and marketplace. Industry and Marketplace Analysis The Industry and Marketplace Analysis section dispassionately describes and outlines the industry and the marketplace in which you will compete. problems.Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition 3. What is the industry that addresses this market? What trends are important in this industry? How does this industry segment the market? What is the market we intend to serve? How large is it? What is its growth potential? What motivates customer purchase decisions? Who are the major players/competitors in the market? . When finished with this section.

Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition 4. Marketing Strategy The Marketing Strategy section of your plan will make or break the prospects for your venture. or capabilities will you bring to the marketplace? Who are your customers? Who are our target customers? What problems are we solving for them? What are their profiles? What motivates their buying decisions? What are the strengths of our product/service? Weaknesses? Who are our competitors? How will we differentiate our product or service? How will our product be priced? What is our cost and profit margin per unit sold? What are anticipated annual sales (units sold times price per unit)? . In the Marketing Strategy section. benefits. show how you are going to fit into your marketplace. What are unmet needs in the marketplace and how are you going to fill them? How will you differentiate your product or service from your competitors? What unique features.

. Distribution & Sales Strategy How will you reach your customers? How will you close the sale with your customers? Remember. etc.g. promotions. What distribution channels will we use (e. "nothing happens until the sale is made" – and the cash is received. etc.Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition 5.)? How will our product or service be sold? Who will do the selling (our own sales people. internet.. manufacturing representatives.g. advertising. wholesalers. direct sales. etc.)? What are the costs associated with our sales strategy? Which costs are fixed? Which are variable? .)? How will we communicate with our customers (e.

) . consulting. logistics. 80% of your employees will be working in operations. printing. about 80% of your expenses will be for operations. and so on. and what will we purchase (make vs. materials. after-sales service. Which operations are critical to the success of our business? Which are secondary? How will we produce and deliver our product/service? What will we do in-house. travel.) and variable costs (labor. transportation. buy)? What will it cost to produce and deliver our product or service? Estimate fixed costs (plant.Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition 6. In all likelihood. Operations Plan The Operations section outlines how you will run your business and deliver value to your customers. Operations is defined as the processes used to deliver your products and services to the marketplace and can include manufacturing. etc. etc. equipment. and 80% of your time will be spent worrying about operating problems and opportunities.

Development Plan The Development section is a road map of how you are going to get from where you are now to where you want to be in the future. furniture. …)? What additional information do we need understand and cost the development of our product or service? . fixtures. deposits. or as critical as applying for and getting a patent on key technology.Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition 7. These steps can be as routine as securing retail space. What must be done before we can introduce our product or service to the marketplace? What are the risks? How long will it take to bring our product or service to market? What is our timeline? What are the one-time start-up and development costs of our business (equipment.

Which exit strategy do we intend to use? Why? What is our time horizon? .Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition 8. How are the investors going to get their money out. or merger of equals. What experience do they have in this industry and product line? 9. ie. Exit Strategy This refers to your future liquidity event. initial public offering. and the return on their investment? Usual forms of exit are through the sale of the company to a larger competitor. Management Team List the names and titles/roles of the individuals involved in our business.

Ratio of break-even to expected quantities (K/A): Estimate the money you will initially need to start your business: M. Contribution margin ratio (I/G): $ . production. Fixed costs (admin. Working capital rqd (receivables . Annual unit sales: B. etc. Total up-front funds required (E+F): N. legal. You have outlined a great business concept. and now will show how much money everyone is going to make. shown how you will execute your ideas.): Calculate estimated annual gross revenues and income: G. Annual break-even quantity (D/J): L. Estimated annual variable costs (A*C): I. Variable cost per unit (production and sales): D. and sales): E. Financial Plan Your Financial Plan should be frosting on a cake.Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition 10. Price per unit: C.): F. Annual return on start-up investment (I/M): R. mktg. Break-even quantity with up-front funds (K+N): Calculate financial performance figures: P. One-time start-up costs (eqpmt. etc. Additional units to cover up-front funds (M/J): O. inventory. demonstrated a real need in the marketplace. Estimated annual contribution margin (G-H-D): Calculate break-even figures: J. Variable cost to price ratio (C/B): S. Contribution margin per unit (B-C): K. Estimated annual revenues (A*B): H. Summarize estimates made in previous sections: A. Payback period for startup funds (M/I): Q.

expenses. an angel…)? Provide 3-year profit & loss projections of sales. and operating profit. Please describe your assumptions in arriving at these numbers. Year 1 Sales Expenses Operating Profit Year 2 Year 3 . venture capital. friends & family loan.Innovation & Entrepreneurship Institute 8th Annual Feasibility Study Competition Do these numbers look attractive enough to proceed? How can they be improved? How much cash will we need to start our business? Where will we get it (personal savings.