Feasibility Study The First step in any business plan

Business development planning. Why? “Plans are nothing….Planning is everything”.

Feasibility Study Proposal Worth 25% of subject 1,500 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 Breakdown of marks allocation 35% - Project Concept Definition 35% - Research Structure 15% - Time Planning 15% - Realism of Resource Allocation

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

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

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

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

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?  Your will need to do:  Primary Research  Secondary Research  Focus Group  Demographic data  Market Research

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

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

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