Feasibility Analysis

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Feasibility Analysis
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First Screen vs. Feasibility Analysis

• First Screen is a quick process to get an idea
  about the business
• The feasibility analysis is a longer process
  where the business idea is fleshed out
• Secondary research
• Primary research

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Feasibility Analysis (p. 55)

• Introduction
• Part 1 Product Service Feasibility
• Name of the Proposed Business
• Name of the founder
• One paragraph summary of the business
• Part 2 Industry/Target Market Feasibility
• Product/service desirability
• Product/service demand
• Part 3 Organizational Feasibility
• Management prowess
• Resource sufficiency
• Part 4 Financial Feasibility
• Total startup cash needed
• Financial performance of similar businesses
• Overall financial attractiveness of the proposed
  venture
• Summary and Conclusion

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Product/Service Feasibility

• Concept Statementpreliminary description of the
  product or idea intended to solicit feedback from
  prospective customers and industry experts
• Product/Service demand

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Getting feedbackissues in survey design

• Schwarz, Norbert (1999) Self Reports How the
  Questions Shape the Answers. American
  Psychologist, 54(2) 93-105.

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Industry/Target Market Feasability

• Industry Attractiveness
• Target Market Attractiveness
• Market Timeliness

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Organizational Feasibility

• Management Prowess
• Resource Sufficiency (non-financial)

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Financial Feasibility

• Total Startup Cash Needed
• Performance of other businesses
• Overall financial attractiveness

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Discussion forum

• Working with the business idea used last week,
  and that will ultimately be the subject of your
  business plan at the end of this term, conduct an
  Industry / Market Feasibility analysis of the
  prospective business. Use Appendix 3.1 on page 70
  of the Barringer text as your guide. Explain why
  you rates the business opportunity as you did for
  each item.