Shared Kitchen Feasibility Studies and

Business Plans

Margaret Horne, MBA, AVAGannon University Small Business Development Center

What is a Feasibility Study An analysis of the viability of an idea through a disciplined and documented process.

Helps answer “Should we proceed with the proposed project idea? Is it a viable business venture?”

Why do a feasibility studyAnalyzes all issues and assesses probability of

success

Gives focus to the project

Identifies reasons NOT to proceed

Identifies factors that could affect the project

Provides quality information for decision making

To secure funding

What Defines Feasibility

A feasible venture

will identify market demand/need/existence

will remain viable in the long-term

will meet the goals of the stakeholders

Levels of Feasibility AssessmentThree levels

Market Feasibility “Who will use it? What is the market size?”

Operational Feasibility “Who will manage? What structure is needed

for long-term viability?”

Economic Feasibility “Can it be self-sustaining in a reasonable

amount of time? Will it generate adequate cash flow?”

Elements of a Feasibility StudyExecutive Summary

Project Description

Premise

Target Market Demographics

MethodologySurveys, focus groups, research

Conclusion - Findings and Recommendations

PremiseDesire/Goal of Study

Establish a shared use kitchen

Establish a multi-use kitchen incubator

Establish a dairy product processing kitchen

TARGET MARKET DEMOGRAPHICS

Suppliers/Distributors/End UsersFood producers

Food distributors

Restaurants

Grocery stores

Specialty food stores

Caterers

Methodology

Interviews

PRIMARY DATA

SurveysFocus

Groups

SECONDARY DATA

Government Agency Reports

Industry Association Statistics

Industry & Trade

Publications

Findings & Recommendations

Does the data and research support the project?

What issues need to be addressed before launch?

Developing a Management/

Operational Plan(Business Plan)

What is a Business Plan?Summarizes the plan of action

Provides operational guidelines

Outlines the actions needed to take the project from idea to reality

Provides a road map for strategic planning

Why Write a Plan?Create a Blueprint for Action

Focus Management Team

Obtain Financing

Attract Investment

Attract Key Stakeholders

Management/Operational PlanSuggested Requirements

GovernanceNon-profit

Separate entity?Board of Directors/Advisory Board

General OperationsDirector/ManagerBoard responsibilities

Organizational Structure

RFV BOARD OF DIRECTORS

Marketing

Committee

MUNNELL RUN FARM

Client Advisory Committee

Penn Soil RC&D Rep

Business Consultant

Policy/Personnel Committee

RFV Director

RFV Kitchen Manager

RFV Clients

Building/Land/EquipmentRent/Build/Purchase

Multi-use/Dairy

Services ProvidedIncubator

Shared Use Kitchen

PricingPer hour, equipment used, seasonal

Market based if incubatorScheduling

Director/manager responsibilityStaffing

Facility DesignEquipment Needs AssessmentLayout of Kitchen

MarketingTarget markets

TenantsNon-tenant usersSuppliers/Distributors/End UsersEconomic Development AgenciesLegislatorsCommunity at large

Intake Process/Tenant Management/Graduation/Non-tenant Management

Startup CostsCapital expendituresWages/salaries Infrastructure development or improvementsAdvertising and PromotionLegal FeesMunicipal & State Development taxes

Financial ProjectionsFixed costsVariable based on best/worst case scenarioSelf-sustaining in reasonable period of time

Funding

Shared Kitchen Feasibility Studies and

Business Plans

Margaret Horne, MBA, AVAGannon University Small Business Development Center