The executive summary provides an overview of the content contained in the feasibility study document. Many people write this section after the rest of the document is completed. This section is important in that it provides a higher level summary of the detail contained within the rest of the document.

2. Industry & Market Feasibility Analysis

When evaluating the feasibility of a business idea, an analysis of the industry and targeted market segments serves as the starting point for the major components of a feasibility analysis. The focus of this phase is twofold: (1) to determine how attractive an industry is overall as a “home” for a new business, and (2) to identify possible niches a small business can occupy profitably.

3. Product or Service Feasibility Analysis: Is There a Market?

This section determines the degree to which a product or service idea appeals to potential customers and identifies the resources necessary to produce the product or provide the service. This section provides a high level description of the products and/or services which are being considered as part of the feasibility study. The purpose of this section is to provide detailed descriptions of exactly what the organization is considering so this information can be applied to the following sections of the document. It is important that this description captures the most important aspects of the products and/or services that the organization is considering as well as how it may benefit customers and the organization.

4. Technology Considerations

This section should explain any considerations the organization must make with regards to technology. Many new initiatives rely on technology to manage or monitor various business functions. New technology may be developed internally or contracted through a service provider and always result in costs which must be weighed in determining the path forward.

5. Product/Service Marketplace

This section describes the existing marketplace for the products and/or services the organization is considering. It may describe who the target market consists of for these products or services, who the competitors are, how products will be distributed, and why customers might choose to buy our products/services. Most marketplaces are dynamic environments in which things change constantly. To enter a new marketplace blindly will usually result in an organization not fully understanding its role and not maximizing its resulting benefits.

6. Marketing Strategy

This section provides a high level description of how the organization will market its product or service. Some topics which should be included are: how does an organization differentiate itself from its competitors; types of marketing the organization will utilize; and who the organization will target. Marketing efforts must be focused on the right target groups in order to yield the greatest return on investment.

7. Organization and Staffing

With many new products or services there may be a need for additional staffing or for an organization to restructure in order to accommodate the change. These are important considerations as they may result in increased costs or require an organization to change its practices and processes.

8. Schedule

This section is intended to provide a high level framework for implementation of the product or service being considered. This section is not intended to include a detailed schedule as this would be developed during project planning should this initiative be approved. This section may include some targeted milestones and timeframes for completion as a guideline only.

9. Financial Feasibility Analysis: Is There Enough Margin?

This section involves assessing the financial feasibility of the business venture. At this stage of the process, a broad financial analysis that examines the basic economic feasibility of the venture is sufficient. This process answers the question, “Can this business generate adequate profit and sustain itself for the long-term? This section aims to provide a description of the financial projections the new initiative is expected to yield versus additional costs. Financial projections are one key aspect of new project selection criteria. There are many ways to present these projections. Net present value (NPV), cost-benefit calculations, and balance sheets are just some examples of how financial projections may be illustrated. This section should also provide the assumptions on which the illustrated financial projections are based such as initial capital investment requirements, estimated earnings, time out of cash, break-even and the resulting Return on Investment (ROI).

SAMPLE CHART:

The assumptions for these projections are as follows:

· In store sales projections remain unchanged

· All milestones are performed in accordance with the schedule

· All transactions are closed yearly with no carry-over to subsequent years

10. Findings and Recommendations

This section should summarize the findings of the feasibility study and explain why this course of action is or is not recommended. This section may include a description of pros and cons for the initiative being considered. This section should be brief since most of the detail is included elsewhere in the document. Additionally, it should capture the likelihood of success for the business idea being studied.

SAMPLE SECTION:

Based on the information presented in this feasibility study, it is recommended that ABC Company…………

The findings of this feasibility study show that………………….

Key findings are as follows:

Technology:

Marketing:

Organizational:

Financial:

11. Entrepreneur Feasibility: Is this Idea Right For Me?

Measure Year 1Year 2Year 3Year 4Year 55 year total

Online Sales Projections $350,000$425,000$500,000$650,000$800,000$2,725,000

Additional Staffing Costs $160,000$170,000$200,000$235,000$255,000$1,020,000

Projected Material, Shipping, Insurance Costs $42,000$58,000$70,000$78,000$84,000$332,000

Additional Web Server and IT Hosting/Maintenance $22,000$25,000$30,000$35,000$40,000$152,000

Training for Sales and Marketing Staff $75,000$0$0$0$0$75,000

Contract for Design, Build, and Implementation of Online

Store

$100,000$0$0$0$0$100,000

Total Additional Costs for Online Sales $399,000$253,000$300,000$348,000$379,000$1,679,000

Cash Inflow -$49,000.00$172,000.00$200,000.00$302,000.00$421,000.00$1,046,000.00