1. © 2004 Ewing Marion Kauffman Foundation

2. Feasibility Plan Product/Service • Purpose of product/service
• Stage of development
• Product limitations
• Proprietary rights
• Governmental approval
• Product liability
• Related services and spin-offs
• Production
FP.1
© 2004 Ewing Marion Kauffman Foundation

3. Feasibility Plan The Market • Current market size • Growth potential
• Industry trends
• Competition profile
• Customer profile
• Customer benefits
• Target markets
• Market penetration
FP.2
© 2004 Ewing Marion Kauffman Foundation

4. Price and Profitability
Feasibility Plan
Price and Profitability
• Price list
• Sales estimate
• Cost of product/service
• Gross margin
• Three-year operating expenses and assumptions
• Three-year operating statement
• Start-up costs
• Capital expenditures
FP.3
© 2004 Ewing Marion Kauffman Foundation

5. Feasibility Plan Sample Income Statement Sales $100,000
Cost of goods 50,000
Gross margin 50,000
Expenses
Utilities 2,400
Salaries 18,000
Payroll taxes and benefits 3,600
Office supplies 300
Insurance 300
Legal and accounting 1,000
Telephone 600
Travel 2,000
Auto expense 1,500
Advertising 5,000
Entertainment 1,000
Miscellaneous 3,600
Total expenses $39,300
Pretax profit $10,700
FP.4
© 2004 Ewing Marion Kauffman Foundation

6. Plan for Further Action
Feasibility Plan
Plan for Further Action
• Needed capital
• Entrepreneur’s role
• Business plan
Pitfalls
Positives
• Licensed potential
• Corporate partners
• Proprietary rights
• Infrastructure members
FP.5
© 2004 Ewing Marion Kauffman Foundation