1. Testing the Concept in the Market

2. Feasibility Analysis Used to test a business concept
Determines if an idea for a new business is practical.
Questions addressed-
Are there customers who want what you have to offer?
What conditions might be present for you to decide to go forward with the business?

3. To determine feasibility
Research the industry
Trends
Barriers
Profit margins
Talk to customers (target market)
Measure interest in product
Understand needs and wants

4. To determine feasibility
Study the competition
Talk to
Visit
Research
Talk to their customers
Talk to suppliers
Create a competitive grid
Look at start up resource needs
Purchasing equipment
Leasing or buying facility?
Carry companies expenses until you can turn a profit

5. The Competitive Grid Competitors Customers Benefits Direct Indirect
Competitor’s target market
Benefits
Benefits customers receive from the business (not the products)

6. The Competitive Grid Distribution Strengths and Weaknesses Direct
Indirect (use of middleman)
How does the product get there?
Strengths and Weaknesses
Analyze with your opinion