Feasibility Analysis Outline

1
Feasibility Analysis Outline

• Writing and Presenting a Business Plan
• Chapter 2

2
Feasibility Analysis Outline

• EXECUTIVE SUMMARY
• Do this last
• PRODUCT/SERVICE DESCRIPTION
• Purpose of the business
• Description and uses
• Design and unique features
• The primary customer
• Spin-offs
• Environmental impact

3
Feasibility Analysis Outline

• MANAGEMENT TEAM
• Qualifications
• Gap analysis

4
Feasibility Analysis Outline

• MARKET ANALYSIS
• Industry Description
• Industry Size
• Industry status (growing, mature, in decline)
• Growth potential
• Geographic locations
• Trends and entry barriers
• Profit potential
• Sales patterns and gross margins

5
Feasibility Analysis Outline

• MARKET ANALYSIS
• Target Market
• Primary target markets
• Secondary markets
• Demographics
• Customer needs analysis
• Product/Service Differentiation
• Unique features
• Potential for innovation

6
Feasibility Analysis Outline

• MARKET ANALYSIS
• Competitors
• Direct and indirect
• Market share
• Description
• Strengths and weaknesses
• Emerging
• Substitute products

7
Feasibility Analysis Outline

• MARKET ANALYSIS
• Competitive Advantage
• Proprietary protection
• Other competitive advantages

8
Feasibility Analysis Outline

• Operational Analysis
• Technical Description of Product/Service
• Uses, design, prototype
• Issues of obsolescence
• Distribution Channels
• Status of Development and Related Costs
• Current status of development
• Tasks to be completed, time and cost to complete
• Potential difficulties, resolution
• Government approvals

9
Feasibility Analysis Outline

• Operational Analysis
• Manufacturing or Operating Requirements and
  Associated Costs
• Manufacturing cycle
• Materials requirements
• Inventory requirements (also retail/wholesale
  business)
• Production requirements (also retail/wholesale or
  service)
• Labor requirements (all businesses)
• Maintenance and quality control requirements (all
  businesses)
• Financial requirements (all businesses)

10
Feasibility Analysis Outline

• MARKETING PLAN
• Pricing
• Venture versus competitors
• Value chain
• Purpose of Marketing Plan
• Target market
• Unique market niche
• Business identity
• Marketing Tools
• Advertising promotion
• Media Plan
• Uses and costs of specific marketing tools
• Marketing Budget
• Individual costs and total costs as a percentage
  of sales

11
Feasibility Analysis Outline

• FINANCIAL PLAN
• Simple Profit and Loss Statement
• Drive all financial assumptions from expected
  costs, not sales projections.
• Try and avoid as many fixed costs as possible.
  Outsource

12
Feasibility Analysis Outline

• CONTINGENCY PLAN
• Deviations from the Original Plan and Solutions
• DEAL STRUCTURE
• Debt and/or Equity Funding Amounts
• Projected Return on Investment