Reference no: EM131369652

Feasibility Analysis

The following simple feasibility analysis template is meant to "firm up" the business idea you want to pursue. The details and numbers you insert will be estimates or "made up" about your business. In a real situation, the analysis is meant to give you a good indication, before you launch a venture,about whether you should move forward with your business opportunity, adjust your opportunity, or scrap it and start over. When it's time to launch your real venture, you can return to this form and complete it in more depth.

Part I is completed for you as an example of an entrepreneurtrying to launch a "Guido's Pizza" opportunity

Sample Customer Questionnaire

1. What are the features you look for in a pizza restaurant?

2. Is price a major determiner of your choice in a pizza place?

3. What is your idea of the perfect location for a pizza restaurant?

Product/Service Feasibility

Your business idea:

Concept Test
• Prepare a customer questionnaire

Prepare a concept statement

• Describe the product/service

• Problem it solves or need it fills
• Describe the typical customer

Industry/Market Feasibility:

Prepare industry attractiveness analysis

• Is the industry large and growing?

• Is the industry young or mature?

• Is the industry crowded with competitors?

Market analysis

• Market is large or small

• Market growing , stagnant, declining

• Identify a niche market

Organizational Feasibility:

Evaluate the management prowess

• What is your expertise?

• What are your weaknesses?

Financial Feasibility:

Total start-up cash needed:

• Assets needed to purchase

• Marketing costs

• Staff to hire

Break-even analysis:

• Fixed costs/Selling Price-Variable costs

o Fixed costs-rent, salaries, loan payments

o Variable costs-Your cost of what you sell