Feasibility Study

The First step in any business plan

Business development planning. Why?

³Plans are nothing«.Planning is everything´.

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     Worth 25% of subject 1.

Realism of Resource Allocation .Time Planning 15% .Feasibility Study Proposal Breakdown of marks allocation     35% .Research Structure 15% .Project Concept Definition 35% .

±Is to determine whether a business idea is worth pursuing. .Feasibility analysis: Feasibility analysis is the process of: ±Determining whether an entrepreneur¶s idea is a viable foundation for creating a successful business. 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. ±If the idea passes the feasibility analysis.

screening out ideas that lack the potential for building a successful business.Feasibility analysis: Feasibility study: Answers the questions ³ Should we proceed with this business Idea´ ±Its role is to serve as a filter. before an entrepreneur commits the necessary resources to building a business plan. ± .

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

spend.Elements of Feasibility study Industry and Market Feasibility: The main aims of the feasibility project are to:       Establish the size. 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? . structure and dynamics of the market for the product/service Profile potential customers in terms of sector.

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 .

2. 3. Training in start up analysis and planning (research etc) Traning in start-up management and operations On-going business mgt skills (post systemisation).Personal Skills Assessment   1. . Training needs analysis Three types of skill sets required.

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 .

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