Is your business/venture Feasible?

1
Is your business/venture Feasible?

• Capable of being done or carried out?

2
How about a Feasibility Study?

• Provides an overview of the primary issues
  related to a business/venture idea. It
  determines if the business venture is feasible
  doable.

3
What is the Purpose of a Feasiblity Study?

• Determines whether the business/venture idea
  makes sense.
• Are there any make or break issues that would
  prevent your business from being successful in
  the marketplace?
• Identifies roadblocks facing your
  business/venture before you make an investment.

4
Benefits of a Feasibility Study

• Provide a lot of information necessary the
  business/venture plan.
• Good market anyalsis is a necessary in order to
  determine the business/venture feasibility.
• Identifies reasons not to proceed
• Provides documentation that the business was
  thoroughly investigated (will help with getting
  financing, as well as help to attract equity
  investment)
• Identifies new opportunities through the
  investigative process.

5
Reasons NOT to conduct a Feasibility Study...

• Already know it is Feasible (another business is
  already doing it and is successful).
• Why do one when one was done a few years ago?
• Just a way for consultants to make money.
• Market analysis has already been done by the
  business that sold us the equipment.
• A feasibility study is a waste of time.

These may sound like good answers but remember...
you may need to live with these decisions for a
long time.
6
Conducting the Feasibility Study...

• Market Cosiderations...
• Technical Considerations...
• Financial Considerations...
• Organizational/Managerial Considerations...
• Competitive Considerations...

7
Market Considerations

• Current or projected demand for your proposed
  product or service(s)?
• What are the target markets for your product or
  service?
• What competition exists in this market?
• Is the location of your proposed business
  location likely to affect the success of your
  business?
• What is the projected supply in your area of the
  products or services needed for your porject.

8
Technical Considerations

• Technology may or may not be of critical
  importance or it may not. Compare a daycare
  center to a manufacturing enterprise.
• If Technology is a consideration
• What are the needs for the business/venture?
• What other equipment does your business need?
  Where will you get it? When will you get it?
  What does it cost?

9
Financial Considerations

• Start-up Costs
• Operating Costs
• Revenue Projections
• Sources of Financing
• Profitability Analysis

10
Organizational / Managerial

• What organizational Structure is the right one
  for your business/venture?
• Who will serve on the Board of Directors and what
  are their qualifications?
• What qualifications are needed to manage this
  business?
• Who will manage the business?
• What are the stafffing needs?

11
Competitive Considerations

• What competition exists n this market?
• Can you establish a market niche which will
  enable you tom compete effectively with others
  providign this product or service?
• How much is your competition charging for similar
  product?

12
Characteristics of a well conducted Feasiblity
Study
13
Possible Courses of Action after a Feasibility
Study
14
Procedures for determining the feasiblity of a
venture/product.