Feasibility Analysis Submission Live plan LU 1 Entrepreneurship

PRODUCT/SERVICE FEASIBILITY

I. CONCEPT STATEMENT TEST

A. Write a concept statement for your proposed business idea. Show the concept statement to 5-10 people.

B. Ask them for feedback as follows: (1) 3 things they liked about your idea, (2) suggestions to make it better, (3) Do they think your idea is feasible, and (4) any additional comments

C. Summarize their feedback in terms of (1) Strengths, (2) Suggestions for strengthening, (3) Percent who think it is feasible versus percent who do not, and (4) Other comments

II. BUYING INTENTIONS SURVEY

A. Do a simple survey of potential customers (15-30) as to whether they would definitely buy, probably buy, might or might not buy, probably would not buy, definitely would not buy.

B. What is the percentage of definitely or probably would buy versus the total sample surveyed.

INDUSTRY/MARKET FEASIBILITY

III. INDUSTRY/TARGET MARKET/TIMELINESS ATTRACTIVENESS

A. Assess the industry utilizing the five digit NAICS code ( www.census.gov/epcd/www/naicstab.htm )

B. Assess the industry in terms of potential as follows:

Low Potential Moderate Potential High Potential

# of competitors Many Few None

Age of Industry Old Middle aged Young

Industry Growth Little Moderate Strong

Profitability Low Medium High

Concentration Concentrated Somewhat Spread Fragmented

Life Cycle Mature Growth Emerging

Importance Ambivalent Would Like Must Have

Economic Impact Low Medium High

New Developments Low Medium High

LT Prospects Weak Neutral Strong

C. Assess the specific target market you plan to enter:

Low Potential Moderate Potential High Potential

# of competitors Many Few None

Target Growth Little Slow Rapid

Profitability Low Medium High

Revenue Generation Unclear Somewhat Clear Clear

Barriers to Entry Unable to create Maybe can create Can create

Current Satisfaction Satisfied Ambivalent Unsatisfied

Guerrilla Marketing Low Moderate High

Target Excitement Low Medium High

D. Assess the specific window of opportunity:

Low Potential Moderate Potential High Potential

Buying Mood None Moderate Aggressive

Momentum Stable to Down Slowly Gaining Rapidly Gaining

New Entrant Need Low Moderate High

Economic Low Medium High

Recent Entrants Large Firms Entered Large Firms Rumored No entry/rumors

ORGANIZATIONAL FEASIBILITY

IV. MANAGEMENT/RESOURCE SUFFICIENCY

Low Potential Moderate Potential High Potential

Passion Low Moderate High

Industry Experience Low Moderate High

Entrep. Experience Low Moderate High

Networks Weak Moderate Strong

Team Creativity Low Moderate High

CF Mgt. Exp, Low Moderate High

College None Some Graduate

Rate the following from 1-5 with 5 being the highest.

· Office Space

· Lab/Manufacturing/Service Space

· Outsource Providers

· Key Management Employees (now and in the future)

· Key Support Personnel (now and in the future)

· Key equipment needed

· Intellectual Property Protection

· Governmental Support for launch

· Favorable partnership/joint venture ability

· Rate the following strong, neutral, or weak.

· Proximity to similar firms

· Proximity to suppliers

· Proximity to customers

· Proximity to major research facilities/universities if applicable

FINANCIAL FEASIBILITY

V. TOTAL START-UP CASH NEEDED TO MAKE THE FIRST SALE

CAPITAL INVESTMENTS

Property $

Furniture/Fixtures $

Computer Equipment $

Other Equipment $

Vehicles $

OPERATING EXPENSES

Legal/Accounting/Professional $

Advertising/Promotions $

Utility Deposits $

Licenses/Permits $

Prepaid Insurance $

Lease Payments $

Salary/Wages $

Payroll Taxes $

Travel/Trade Shows $

Signage $

Tools/Supplies $

Starting Inventory $

Working Capital $

Other $

TOTAL START-UP NEEDS $

VI. FINANCIAL COMPARISON ANALYSIS

· Your projected sales compared to similar firms

· Your projected net income compared to similar firms

· Your break-even compared to similar firms

· Your ratio analysis compared to similar firms

VII. FINANCIAL ATTRACTIVENESS

Low Potential Moderate Potential High Potential

3 year rapid sales growth Unlikely Somewhat Likely Highly Likely

Recurring income % Low Moderate Strong

Forecast certainty Weak Moderate Strong

Finance growth internally Unlikely Somewhat Likely Highly Likely

Exit opportunity Unavailable May be available Available

VIII. OVERALL FEASIBILITY

A. Product/Market Feasibility Overall Rating Suggestions

Not feasible __________

Unsure __________

Feasible __________

B. Industry/Market Feasibility Overall Rating Suggestions

Not feasible __________

Unsure __________

Feasible __________

C. Organizational Feasibility Overall Rating Suggestions

Not feasible __________

Unsure __________

Feasible __________

D. Financial Feasibility Overall Rating Suggestions

Not feasible __________

Unsure __________

Feasible __________

E. Overall Assessment Overall Rating Suggestions

Not feasible __________

Unsure __________

Feasible __________