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

Product/Service Feasibility

Rough Ideas/ Sample details, number crunching, etc

Your business idea:

(Guido's Pizza)Your business idea goes here.

Concept Test

·         Prepare a customer questionnaire

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?

Replace with 3 questions for your own questionnaire.

Prepare a concept statement

Sample concept for Guido's Pizza. (Replace with your own)

·         Describe the product/service

Guido’s Pizza will be a full service pizza restaurant offering delivery and catering. (Replace with your own description of product/service)

·         Problem it solves or need it fills

We will be known for our “make your own” individual pizzasfor people who are tired of fast food generic pizza. We will also have  a colossal salad bar for these same people who feel the need to "eat healthy."(Replace with your own)

·         Describe the typical customer

We will be located close to campus and attract college students looking to meet with friends. We will offer a friendly atmosphere and volume discounts to customers.(Replace with your own.)

Industry/Market Feasibility:

Prepare industry attractiveness analysis

(Insert your notes from study of industry)

·         Is the industry large and growing?

·         Is the industry young or mature?

·         Is the industry crowded with competitors?

Market analysis

(Continue to fill out the template with brief comments.)

·         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