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7/25/2019 Final Feasability Study
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WHAT IS A FEASIBILITYSTUDY?
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What Is Feasibility Analysis?
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Feasibility analysis is the process ofdetermining whether a business ideais viable.
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A feasibility analysis helps you
To assess the merit of your business
idea,etermine whether there is a mar!et foryour idea,"hether the idea is #nancially viable,
and ultimately, whether or not it isworth investing your time and moneyinto the venture,$verall demand for new products,
services, or ideas
Benefits of Feasibility Analysis?
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Reasons to Do a FeasibilityStudy
%onducting a feasibility study is a goodbusiness practice. (f you e)amine successfulbusinesses, you will #nd that they did not go
into a new business venture without #rstthoroughly e)amining all of the issues andassessing the probability of business success.
*elow are other reasons to conduct a
feasibility study+ ives focus to the proect and outline alternatives.
arrows business alternatives
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Reasons to Do..
(denti#es new opportunities through theinvestigative process.
(denti#es reasons not to proceed./nhances the probability of success by
addressing and mitigating factors earlyon that could a0ect the proect.
rovides uality information for decisionma!ing.
rovides documentation that the businessventure was thoroughly investigated.
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When To Conduct a Feasibility Analysis
Timing of Feasibility Analysis
The proper time to conduct a feasibility analysis is
early in thinking through the prospects for a new
business. The thought is to screen ideas before a lot of
resources are spent on them
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(t is estimated that only one in #ftybusiness ideas are actually commerciallyviable. Therefore a business feasibilitystudy is an e0ective way to safeguard
against wastage of further investment
The research and information uncovered inthe feasibility study will support the
business planning stage and reduce theresearch time. 6ence the cost of thebusiness plan will also be reduced
Conti.
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Components of a Feasibility Analysis
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roduct89ervice Feasibility
$rgani:ational Feasibility
(ndustry8Target ;ar!etFeasibility
Financial Feasibility
Technical Feasibility
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A feasibility study is only one step in the business idea assessment ,and
business development process
http://www.extension.iastate.edu/agdm/wholefarm/html/c5-02.htmlhttp://www.extension.iastate.edu/agdm/wholefarm/html/c5-02.htmlhttp://www.extension.iastate.edu/agdm/wholefarm/html/c5-02.htmlhttp://www.extension.iastate.edu/agdm/wholefarm/html/c5-02.htmlhttp://www.extension.iastate.edu/agdm/wholefarm/html/c5-02.htmlhttp://www.extension.iastate.edu/agdm/wholefarm/html/c5-02.htmlhttp://www.extension.iastate.edu/agdm/wholefarm/html/c5-02.html7/25/2019 Final Feasability Study
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Feasibility Analysis
3-ole of feasibility analysis in developingbusiness ideas.
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Outline for a Comprehensive Feasibility Analysis
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roduct!"ervice Feasibility Analysis
3-
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#.#$ roduct!"ervice %esirability
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#.'$ roduct!"ervice %emand
roduct!Service "emand
Through primary and secondary research
Step #$ Administer a %uying &ntentions Survey,
focus group etc Step '$ (onduct library, &nternet research, used
local data etc
3-
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3-2esearch/)planationA gumshoe is a detective or aninvestigator that scrounges around for
information or clues wherever they canbe found.*e a gumshoe. As! people what theythin! about your product or service idea.(f your idea is to sell educational toys,
spend a wee! volunteering at a day carecenter and watch how children interact
with toys.
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'.( Industry!Tar)et *ar+et Feasibility Analysis
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(ndustry8Target
;ar!et FeasibilityAnalysis
urpose
(s an assessment of theoverall appeal of the industry andthe
target mar!et for the
proposed business.An industry is a group of#rms
producing a similarroduct or
Maret Feasibility+(ncludes a description of
the industry, currentmar!et, anticipated futuremar!et potential,competition, salesproections, potential
buyers, etc.
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Industry!Tar)et *ar+et Feasibility Analysis
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%omponents of industry8targetmar!et
feasibility analysis
(ndustry Attractiveness Target ;ar!etAttractiveness
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!.". Assessin# IndustryAttra$ti%eness
&orter '%e (or$es)odel
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'.'. Tar)et *ar+et Attractiveness
Target )arket Attractiveness
The challenge in identifying an attractive target market
is to find a market that*s large enough for the proposedbusiness but is yet small enough to avoid attracting
larger competitors.
Assessing the attractiveness of a target market is tougher
than an entire industry.
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Maretin# studyin$ludes
25
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,.(. Or)ani-ational Feasibility Analysis
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$rgani:ational
Feasibility Analysis
urpose
(s conducted to determine whether a proposed business
has suEcient managemente)pertise, organi:ational competence,and
resources to successfullylaunch a business.Focuses on non-#nancial
resources.
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*r#ani+ational studyin$ludesawas 2
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Te$,ni$al Feasibility
3=
Te$,ni$al Feasibility- etails howyou will deliver a product or service&i.e., materials, labor, transportation,
where your business will be located,technology needed, etc.'. roductionprocess includes input, processing and
output.
Decturer.Ahmed /l >awas
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Te$,ni$al study in$ludes
3