Feasibility Overview i
Feasibility Overview
Feasibility Study Project Outlined Rules:
1. Due November 29 end of day
2. 3 to 5 pages, include a cover page – name class date business idea name and a separate table of contents and you can use either endnotes or footnotes for any research you used or reference material.
3. On your business idea
4. Write a concise and simply narrative for your business as an introduction
5. Complete each section of the feasibility study (see outline below) based on the outline in the book and with my guidance where needed
6. In a conclusion, summarize a point total for each section and then rank your idea 1 to 5. It might be a 5 in 3 years but a 3 today. You have to be honest with your assessment. Provide a conclusion as to whether you would move the idea forward today or wait until you have a greater understanding of the market or access to more resources or whatever the biggest challenge you see to your success.
Here is a high level view on feasibility.
FEASIBILITY ANALYSIS
The four stages of feasibility analysis are product/service feasibility, industry/target market feasibility, organizational feasibility, and financial feasibility.
Product/Service Feasibility Analysis
Product/Service Desirability —The first component of product/service feasibility analysis is to affirm that the proposed product or service is desirable and serves a need in the marketplace.
Product/Service Demand—The second component of product/service feasibility analysis is to determine if there is demand for the product or service. The commonly used methods for doing this are shown below.
Industry/Target Market Feasibility Analysis
Industry/target market feasibility is an assessment of the overall appeal of the industry and the target market for the product or service being proposed.
Industry Attractiveness—Industries vary in terms of their overall attractiveness. In general, the most attractive industries have the following characteristics
Organizational Feasibility Analysis
Organizational feasibility analysis is conducted to determine whether a proposed venture has sufficient management expertise, organizational competence, and resources to successfully launch. There are two primary issues to consider in this area: management prowess and resource sufficiency.
A. Management Prowess
B. Resource Sufficiency
Financial Feasibility Analysis
Financial feasibility analysis is the final component of a comprehensive feasibility analysis. For feasibility analysis, a preliminary financial assessment is usually sufficient.
The most important issues to consider at this state are total start-up cash needed financial performance of similar businesses, and the overall financial attractiveness of the proposed venture.
Feasibility Template, if all areas are not higher than 3 and you do not score and aggregate of 16, then you should consider not moving forward. Naturally, in a class, some of the sections are hypothetical, for example, strength of team…. As most of you have limited practical experience in the specific industry you are addressing – this would probably be a low score, but extrapolate
Item Score/Comments
Strength of New-Venture Team
1 2 3 4 5
Strength of the Opportunity
1 2 3 4 5
Strength of the Industry
1 2 3 4 5
Strength of Business Model/Financial
1 2 3 4 5
Average Score
x.xx/5.00
Decision: Need at least an average of 4 but would probably want a 4.5 or higher to move an idea forward.