Feasibility Analysis Outline

Writing and Presenting a Business Plan

Chapter 2

Feasibility Analysis Outline EXECUTIVE SUMMARY

Do this last

PRODUCT/SERVICE DESCRIPTION Purpose of the business Description and uses Design and unique features The primary customer Spin-offs Environmental impact

Feasibility Analysis Outline MANAGEMENT TEAM

Qualifications Gap analysis

Feasibility Analysis Outline MARKET ANALYSIS Industry Description

Industry Size Industry status (growing, mature, in decline) Growth potential Geographic locations Trends and entry barriers Profit potential Sales patterns and gross margins

Feasibility Analysis Outline MARKET ANALYSIS Target Market

Primary target markets Secondary markets Demographics Customer needs analysis

Product/Service Differentiation Unique features Potential for innovation

Feasibility Analysis Outline MARKET ANALYSIS Competitors

Direct and indirect Market share Description Strengths and weaknesses

Emerging Substitute products

Feasibility Analysis Outline MARKET ANALYSIS Competitive Advantage

Proprietary protection Other competitive advantages

Feasibility Analysis OutlineOperational AnalysisTechnical Description of Product/Service

Uses, design, prototype Issues of obsolescence

Distribution Channels

Status of Development and Related Costs Current status of development Tasks to be completed, time and cost to complete Potential difficulties, resolution Government approvals

Feasibility Analysis Outline Operational Analysis

Manufacturing or Operating Requirements and Associated Costs Manufacturing cycle Materials requirements Inventory requirements (also retail/wholesale business) Production requirements (also retail/wholesale or service) Labor requirements (all businesses) Maintenance and quality control requirements (all businesses) Financial requirements (all businesses)

Feasibility Analysis Outline MARKETING PLAN Pricing

Venture versus competitors Value chain

Purpose of Marketing Plan Target market Unique market niche Business identity

Marketing Tools Advertising & promotion

Media Plan Uses and costs of specific marketing tools

Marketing Budget Individual costs and total costs as a percentage of sales

Feasibility Analysis Outline

FINANCIAL PLAN Simple Profit and Loss Statement Drive all financial assumptions from expected costs, not sales

projections. Try and avoid as many fixed costs as possible. Outsource

Feasibility Analysis Outline

CONTINGENCY PLAN Deviations from the Original Plan and Solutions

DEAL STRUCTURE Debt and/or Equity Funding Amounts Projected Return on Investment