Objective 2.13

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

• 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.

• To answer the question: Should I proceed with this project?

• Provides a lot of information necessary for the business/venture plan.• Good market analysis 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.

• 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.

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

Considerations...• Competitive 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 project?

• 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?

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

• 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 staffing needs?

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

• In order for a feasibility to be useful it must be COMPLETE and include (at a minimum) the following elements:1. Project Scope• Defines the business problem and/or opportunity

to be addressed. 2. Current Analysis• Define and understand the current method of

implementation, such as a system, a product, etc.

3. Requirements• Financial, Human Resources, Material,

Equipment• Depends on the projectSource: http://it.toolbox.com/blogs/irm-blog/the-elements-of-a-good-feasibility-study-23199

• In order for a feasibility to be useful it must be COMPLETE and include (at a minimum) the following elements:4. Approach• Recommended solution or course of action to

satisfy the requirements.5. Evaluation• Examines the cost effectiveness of the

Approach selected.6. Review• All of the preceding elements are then

assembled into a Feasibility Study and a formal review is conducted with all parties involved.

Source: http://it.toolbox.com/blogs/irm-blog/the-elements-of-a-good-feasibility-study-23199