Final Feasability Study

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WHAT IS A FEASIBILITYSTUDY?


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What Is Feasibility Analysis?

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Feasibility analysis is the process ofdetermining whether a business ideais viable.


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A feasibility analysis helps you

To assess the merit of your business

idea,etermine whether there is a mar!et foryour idea,"hether the idea is #nancially viable,

and ultimately, whether or not it isworth investing your time and moneyinto the venture,$verall demand for new products,

services, or ideas

Benefits of Feasibility Analysis?


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Reasons to Do a FeasibilityStudy

%onducting a feasibility study is a goodbusiness practice. (f you e)amine successfulbusinesses, you will #nd that they did not go

into a new business venture without #rstthoroughly e)amining all of the issues andassessing the probability of business success.

*elow are other reasons to conduct a

feasibility study+ ives focus to the proect and outline alternatives.

arrows business alternatives


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Reasons to Do..

(denti#es new opportunities through theinvestigative process.

(denti#es reasons not to proceed./nhances the probability of success by

addressing and mitigating factors earlyon that could a0ect the proect.

rovides uality information for decisionma!ing.

rovides documentation that the businessventure was thoroughly investigated.


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When To Conduct a Feasibility Analysis

Timing of Feasibility Analysis

The proper time to conduct a feasibility analysis is

early in thinking through the prospects for a new

business. The thought is to screen ideas before a lot of

resources are spent on them

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(t is estimated that only one in #ftybusiness ideas are actually commerciallyviable. Therefore a business feasibilitystudy is an e0ective way to safeguard

against wastage of further investment

The research and information uncovered inthe feasibility study will support the

business planning stage and reduce theresearch time. 6ence the cost of thebusiness plan will also be reduced

Conti.


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Components of a Feasibility Analysis

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roduct89ervice Feasibility

$rgani:ational Feasibility

(ndustry8Target ;ar!etFeasibility

Financial Feasibility

Technical Feasibility


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A feasibility study is only one step in the business idea assessment ,and

business development process
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Feasibility Analysis

3-ole of feasibility analysis in developingbusiness ideas.


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Outline for a Comprehensive Feasibility Analysis

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roduct!"ervice Feasibility Analysis

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#.#$ roduct!"ervice %esirability


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#.'$ roduct!"ervice %emand

roduct!Service "emand

Through primary and secondary research

Step #$ Administer a %uying &ntentions Survey,

focus group etc Step '$ (onduct library, &nternet research, used

local data etc

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3-2esearch/)planationA gumshoe is a detective or aninvestigator that scrounges around for

information or clues wherever they canbe found.*e a gumshoe. As! people what theythin! about your product or service idea.(f your idea is to sell educational toys,

spend a wee! volunteering at a day carecenter and watch how children interact

with toys.


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'.( Industry!Tar)et *ar+et Feasibility Analysis

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(ndustry8Target

;ar!et FeasibilityAnalysis

urpose

(s an assessment of theoverall appeal of the industry andthe

target mar!et for the

proposed business.An industry is a group of#rms

producing a similarroduct or

Maret Feasibility+(ncludes a description of

the industry, currentmar!et, anticipated futuremar!et potential,competition, salesproections, potential

buyers, etc.


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Industry!Tar)et *ar+et Feasibility Analysis

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%omponents of industry8targetmar!et

feasibility analysis

(ndustry Attractiveness Target ;ar!etAttractiveness


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!.". Assessin# IndustryAttra$ti%eness

&orter '%e (or$es)odel


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'.'. Tar)et *ar+et Attractiveness

Target )arket Attractiveness

The challenge in identifying an attractive target market

is to find a market that*s large enough for the proposedbusiness but is yet small enough to avoid attracting

larger competitors.

Assessing the attractiveness of a target market is tougher

than an entire industry.

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Maretin# studyin$ludes

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,.(. Or)ani-ational Feasibility Analysis

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$rgani:ational

Feasibility Analysis

urpose

(s conducted to determine whether a proposed business

has suEcient managemente)pertise, organi:ational competence,and

resources to successfullylaunch a business.Focuses on non-#nancial

resources.


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*r#ani+ational studyin$ludesawas 2


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Te$,ni$al Feasibility

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Te$,ni$al Feasibility- etails howyou will deliver a product or service&i.e., materials, labor, transportation,

where your business will be located,technology needed, etc.'. roductionprocess includes input, processing and

output.

Decturer.Ahmed /l >awas


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Te$,ni$al study in$ludes

3

Documents

Final Feasability Study