Feasibility andBusiness PlanningFeasibility andBusiness Planning

Back to Table of Contents

UNIT 2Researching &

Planning Your Venture

Feasibility and Business PlanningFeasibility and Business Planning

2

Read & Define

Warm –up

Read pages 94 & 95 of Chapter 5.1

Define:• business concept• feature• benefit• feasibility analysis

Feasibility and Business PlanningFeasibility and Business Planning

3

Discuss the importance of defining a prospective business by writing a clear and concise business concept.

Describe how a feasibility study can be used to test a concept in the marketplace.

Section 5.1 Feasibility Analysis: Testing an Opportunity

5.1

Feasibility and Business PlanningFeasibility and Business Planning

4

Developing a Business Concept

Once you have a idea for a new business, define it by writing a clear and concise business concept.

business concept a clear and concise description of a business opportunity; it contains four elements: the product or service, the customer, the benefit, and the distribution

Section 5.1 Feasibility Analysis: Testing an Opportunity

Feasibility and Business PlanningFeasibility and Business Planning

5

Developing a Business Concept

In developing a business concept, consider the features and benefits your product or service offers.

features distinctive aspects, qualities, or characteristics of a product or service

Section 5.1 Feasibility Analysis: Testing an Opportunity

benefits things that promote or enhance the value of a product or a service to the customer

Feasibility and Business PlanningFeasibility and Business Planning

6

Developing a Business Concept

When developing a business concept an entrepreneur must ask the following questions:

What is the product or service being offered Who is the customer? What is the benefit that is being provided? How will the benefit be delivered to the

customer?

Section 5.1 Feasibility Analysis: Testing an Opportunity

Feasibility and Business PlanningFeasibility and Business Planning

7

Testing the Concept in the Market

An entrepreneur can use a feasibility analysis in order to decide if there is enough demand for a product or service.

feasibility analysis the process that tests a business concept; it allows the entrepreneur to decide whether a new business concept has potential

Section 5.1 Feasibility Analysis: Testing an Opportunity

Should I proceed with

this business?

Feasibility and Business PlanningFeasibility and Business Planning

8

Let’s Practice

In your table groups, discuss what you have learned today. Together, write a compelling, clear & concise business concept

statement for DECA Custom Designs. Be sure to refer back to your notes on questions to address.

Here is a sample of one:“Eastside Sports offers sporting equipment and apparel to

local teams and people who play sports. It provides the convenience of one-stop shopping at a retail outlet in the customer’s own neighborhood.”