Scribd Logo
Upload

Welcome to Scribd!

  • 37 views

    Lecture 3 - Feasibility Analysis

    Uploaded by

    Wasay Hanif
    A feasibility analysis determines the viability of a business idea by evaluating factors such as product/service desirability and demand, industry and target market attractiveness, organizational capabilities, and financial requirements. It involves preliminary evaluation of the business concept through customer feedback, assessing trends benefiting the industry, identifying an appropriately sized target market, evaluating management experience, and determining startup costs and overall financial attractiveness compared to similar businesses. Conducting a feasibility analysis helps prepare for risks and provides insights before fully committing resources to a new business venture.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Lecture 3 - Feasibility Analysis

    Uploaded by

    Wasay Hanif
    37 views20 pages
    A feasibility analysis determines the viability of a business idea by evaluating factors such as product/service desirability and demand, industry and target market attractiveness, organizational capabilities, and financial requirements. It involves preliminary evaluation of the business concept through customer feedback, assessing trends benefiting the industry, identifying an appropriately sized target market, evaluating management experience, and determining startup costs and overall financial attractiveness compared to similar businesses. Conducting a feasibility analysis helps prepare for risks and provides insights before fully committing resources to a new business venture.

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    A feasibility analysis determines the viability of a business idea by evaluating factors such as product/service desirability and demand, industry and target market attractiveness, organizational capabilities, and financial requirements. It involves preliminary evaluation of the business concept through customer feedback, assessing trends benefiting the industry, identifying an appropriately sized target market, evaluating management experience, and determining startup costs and overall financial attractiveness compared to similar businesses. Conducting a feasibility analysis helps prepare for risks and provides insights before fully committing resources to a new business venture.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    37 views20 pages

    Lecture 3 - Feasibility Analysis

    Uploaded by

    Wasay Hanif
    A feasibility analysis determines the viability of a business idea by evaluating factors such as product/service desirability and demand, industry and target market attractiveness, organizational capabilities, and financial requirements. It involves preliminary evaluation of the business concept through customer feedback, assessing trends benefiting the industry, identifying an appropriately sized target market, evaluating management experience, and determining startup costs and overall financial attractiveness compared to similar businesses. Conducting a feasibility analysis helps prepare for risks and provides insights before fully committing resources to a new business venture.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 20

    Feasibility Analysis

    Lecture 3
    What is feasibility analysis

    When to conduct feasibility analysis?

    What is the role of feasibility analysis?

    What are the elements of feasibility?


    What is a feasibility analysis?

    Process of de- Provides in-


    Preliminary
    termining viabil- sights before Prepare for risk
    evaluation of a
    ity of business starting the mitigation
    business idea
    idea business
    When to conduct a feasibility analysis?
    While com-
    While screen- mitting re-
    ing the ideas sources

    While com- While evalu-


    paring the ating the
    execution of risks
    ideas
    Elements of Feasibility Analysis
    Outline of Feasibility analysis
    Product / Service Feasibility
    • Product / service desirability
    • Product / service demand
    Industry / Target Market Feasibility
    • Industry attractiveness
    • Target market attractiveness
    Organizational Feasibility
    • Management prowess
    • Resource sufficiency
    Financial Feasibility
    • Total startup cash needed
    • Overall financial attractiveness
    Product/Service feasibility
    • Is an assessment of the overall
    appeal of the product or service
    being proposed.
    • Before a prospective firm rushes
    a new product or service into
    development, it should be sure
    that the product or service is what
    prospective customers want.
    First, ask the following questions to determine the basic appeal of the product or
    service.

    • Does it make sense? Is it reasonable? Is it something consumers

    will get excited about?


    • Does it take advantage of an environmental trend, solve a

    problem, or take advantage of a gap in the marketplace?


    • Is this a good time to introduce the product or service to the

    market?
    • Are there any fatal flaws in the product or service’s basic design

    or concept?
    Second, Administer a Concept Test
    A concept statement should be developed.
    A concept statement is a one-page description of a business that
    is distributed to people who are asked to provide feedback on the
    potential of the business idea.
    The feedback will hopefully provide the entrepreneur:
    A sense of the viability of the product or service idea.
    Suggestions for how the idea can be strengthened or “tweaked” before pro-
    ceeding further.
    Product/Service Demand
    There are two steps to assessing product/service demand.

    Step 1: Talking Face-to-Face with Potential Customers.

    Step 2: Using Online Tools, Such as Landing Pages,


    to Assess Demand.
    Talking Face-to-Face with Potential Customers
    The only way to know if your product or service is what people want is by
    talking to them.
    The idea is to gauge customer reaction to the general concept of what you
    want to sell, and tweak, revise, and improve on the idea based on the
    feedback.
    In some cases, talking with potential customers will cause an entrepreneur
    to abandon an idea.
    Entrepreneurs are often surprised to find that a product idea they think solves a
    problem gets lukewarm reception when they talk to actual customers.
    Industry & Target Market
    Feasibility Analysis
    Industry Attractiveness
    Industries vary in terms of their overall attractiveness.
    Particularly important—the degree to which environmental and
    business trends are moving in favor rather than against the
    industry.
    Target Market Attractiveness
    The challenge in identifying an attractive target market is to find a
    market that’s large enough for the proposed business but is yet
    small enough to avoid attracting larger competitors.
    Assessing the attractiveness of a target market is tougher than as-
    sessing the attractiveness an entire industry.
    Often, considerable ingenuity must be employed to find information
    to assess the attractiveness of a specific target market.
    Organizational feasibility

    Financial feasibility
    Management Prowess
    Passion

    Expertise

    Skill-set

    Market understanding
    Physical re-
    sources

    Human Financial
    resources resources
    Financial feasibility
    Total Start-Up Cash
    Needed
    Overall Financial
    Attractiveness of the
    Proposed Venture
    Financial Performance of
    Similar Businesses
    Thank you

    You might also like