BUSINESS FEASIBILITY ANALYSIS OUTLINE 1.

Your Company In this section you will work on summarizing your new business idea and the business opportunity that you have identified. You will want to prepare some basic information for these topics including company information such as name, location, founders, etc. Company summary: This topic functions as a brief summary of your proposed business. Insert the following information: Name of your proposed business. Information regarding where the business will be located. Names of the founding entrepreneur or entrepreneurs. ne paragraph summary of the business. The paragraph shouldn!t contain more than"#$ sentences, but should distinctly state what your business will sell and who your customers will be. %&planation of where the business idea came from. Basis for new business: 'ost successful new business ideas either ()* solve a problem, or (+* take advantage of an environmental trend that creates the opportunity for a new business idea. ,lick the Examples link for e&amples of firms that were started for either of these reasons. -escribe the way in which your proposed business either ()* solves a problem, or (+* takes advantage of an environmental trend that created the opportunity for a new business idea. 2. Preliminary Test of Business Idea .efore a venture team of a proposed business undertakes a feasibility analysis, a business concept statement should be developed. / business concept statement is a one page description of a business that is distributed by a startup entrepreneur to people who are asked to provide feedback on the potential of the business idea. 0opefully, the feedback you obtain from your business concept statement will ()* give you a sense of the viability of your business idea and (+* provide you suggestions for revising or 1tweaking1 your business idea before proceeding further. New business concept statement: Your business concept statement should not be more than one page long. It should include the following information: / description of the product or service being offered. This section details the features of the product or service and may include a sketch of it as well. The intended target market. This section lists the businesses or people who will buy the product or service. The benefits of the product or service. This section describes the benefits of the product or service and includes an account of how the product or service adds value and2or solves a problem. / description of how the product or service will be sold and distributed. This section specifies whether the product will be sold directly by you, or whether it will be sold through a distributor or a retailer. 3or a service business, this section details how the service will be delivered and sold. 'anagement team. This section provides information about the founder (or founders* of your proposed business, and other key members of the founding team (if any* that are in place. )

Test the business concept statement: You should show your business concept statement to )4#+5 people whom you trust and feel will give you informed and candid feedback about the potential of your business idea. /void asking people to read your concept statement that are likely to give you positive feedback, because they are a close friend or want to encourage you. /ttach a blank sheet of paper to your concept statement, and ask the people who read the statement to: ). Tell you three things they like about your business idea. +. 6rovide three suggestions for making it better (avoid asking people to write things they 1do not like1 about your business idea, because most people are reluctant to give negative feedback to someone they hardly know*. ". Tell you whether they think the proposed business is feasible. 7tress to the people who read your concept statement that you will not be offended if they do not think the proposed business is feasible (or viable*. You are looking for candid and substantive feedback. Business concept statement feedback This section is provided to report feedback from your business concept statement test. You should report the following information: Strengths of the Business Idea # things people who evaluated your business concept statement said they 1liked1 about your business idea. Suggestions for Strengthening the Business Idea # suggestions made by the people who evaluated your business concept statement for strengthening your business idea. Overall Feasibility of the Business Idea # report the number of people who thought the idea is feasible, the number of people who though the idea isn!t feasible, and any useful comments made pertaining to this topic. !ssessment of the business idea This step is provided to help you evaluate the feedback you received from showing people your business concept statement and reading their comments. Is not feasible 'ay or may not be feasible Is feasible ) + " $ 4 Conclusion .ased on the feedback that you gathered for your .usiness ,oncept 7tatement, you need to decide how to proceed. Your choices are: 6roceed with the feasibility analysis. 6roceed with the feasibility analysis, taking into consideration suggestions made by the people involved in the business concept statement test. 8ethink the business idea, and create a new business concept statement to be tested before proceeding. -o not proceed with the feasibility analysis. The business idea is not feasible. "easons for assessment ). -escribe what you learned from your business concept statement test. +. -escribe your reasons for the number you selected on the following )#4 scale9 Is not feasible 'ay or may not be feasible Is feasible ) + " $ 4 ". If your conclusion is to proceed with the feasibility analysis, describe the basis of your conclusion. If you elected to proceed with your feasibility analysis, taking into consideration suggestions made by the people involved in your business concept test, list the suggestions that you feel are the most helpful, and describe how you plan to address them. If +

your conclusion is not to proceed with the feasibility analysis, what alternative plan will you design to test9 This last conclusion will re:uire that your team repeat the previous steps before proceeding to the ne&t section. #. Product$%er&ice 'easibility In this section, you will work on the product or service feasibility of your business idea. 6roduct2service feasibility is an assessment of the overall appeal of the product or service being proposed. The idea is that before a prospective firm rushes a product or service into development, it should be confident that the product or service is what its potential customers want. / product2service concept test involves showing a representation of the proposed product or service to )4#+5 people. If a prototype of the proposed product or service is not available, a written or verbal description of the product or service should be used in its place. / product2service concept test is completed to ()* validate the overall desirability of the product or service idea and (+* help develop the idea. The two components of a product2service feasibility analysis are the 6roduct27ervice ,oncept Test and the .uying Intentions 7urvey. Product$ser&ice concept statement .ased on the assumption that a physical prototype of the product or service is not available, write a half#page to full#page statement that describes the product or service idea. If a physical prototype is available, skip this topic and substitute the prototype for the written e&planation. Include in the statement the following information. The first two bullet point sections can be briefer versions of what you wrote in your concept statement. You may use these bullet points as your topic headings. Produ t!Servi e des ri"tion# The intended target $ar%et. &alue'added. %&plain how, e&actly, the product or service solves a problem or takes advantage of an environmental trend that provides the opportunity for a new business idea. In other words, ;ustify why the product or service is needed. Intelle tual "ro"erty "rote tion. %&plain the e&tent to which your product or service will be protected by patents, trademarks, or copyrights. Other Advantages. %&plain any uni:ue aspect of your product or service that would be of interest to its potential customers. Product$ser&ice concept test The 6roduct27ervice ,oncept 7tatement should be shown to )4#+5 people (try to use different people than the people you involved in your concept statement test*. /ttach a blank sheet of paper to your statement. /sk the people who see the statement to: ). <rite three things they like about your product2service idea. +. 6rovide three suggestions they have to improve it. ". Indicate whether they think the product2service idea is feasible or viable. 7tress to the people involved in the test that you will not be offended if they do not think the proposed product or service idea is feasible (or viable*. You are looking for candid and substantive feedback. Buyin( intentions sur&ey ,opy and paste the 6roduct27ervice ,oncept 7tatement into this topic as a starting point to create a .uying Intentions 7urvey, which will help you estimate the market reception to your product or service. Include the following: "

-escription of the product or service The intended target market ther advantages .uying intention :uestion

The buying intention :uestion should look something like this: 0ow likely would you be to buy the product or service described above9 ====== -efinitely would buy ====== 6robably would buy ====== 'ight or might not buy ====== 6robably would not buy ====== -efinitely would not buy %ur&ey potential buyers -istribute your .uying Intentions 7urvey to )4#+5 people that you think might buy your product or service. The number of people who respond that they definitely would buy or probably would buy are typically combined and used as a gauge of customer interest. ne caveat is that people who say that they intend to purchase a product do not always follow through, so the numbers resulting from this activity are almost always optimistic. 7till, the numbers provide you with a preliminary indication of how your most likely customers will respond to your potential product or service offering. Concept test and sur&ey results This section is provided to report feedback from the two steps of your product2service feasibility analysis. 7tep ): 6roduct27ervice ,oncept Test 7trengths of the 6roduct27ervice Idea (things people who evaluated your product2service concept statement said they 1liked1 about your product2service idea* 7uggestions for 7trengthening the 6roduct27ervice Idea (suggestions made by the people who evaluated your product2service concept statement for strengthening your product2service idea* verall 3easibility of Your 6roduct27ervice Idea (report the number of people who thought the idea is feasible, the number of people who though the idea isn!t feasible, and any useful comments made pertaining to this topic*

7tep +: .uying Intentions 7urvey 8eport the number of participants that checked each of the following selections: ====== -efinitely would buy ====== 6robably would buy ====== 'ight or might not buy ====== 6robably would not buy ====== -efinitely would not buy /lso report the percentage of the total number of people you surveyed that said they would probably buy or definitely would buy your product or service if offered. This percentage is the most important figure in gauging potential customer interest. !ssessment of the product$ser&ice feasibility This step walks you through evaluating the feedback you received from the two steps of your 6roduct27ervice 3easibility /nalysis> the 6roduct27ervice ,oncept 7tatement, and the .uying Intentions 7urvey. Is not feasible 'ay or may not be feasible Is feasible ) + " $ 4 Conclusion .ased on the feedback that you gathered for your 6roduct27ervice ,oncept 7tatement and your .uying Intentions 7urvey, you need to decide how to proceed. Your choices are: 6roceed with the feasibility analysis. 6roceed with the feasibility analysis, taking into consideration information gleaned from the product2service feasibility analysis, which may be used to revise or 1tweak1 the product2service idea. 8ethink the business idea, and create a new product2service feasibility analysis before proceeding. -o not proceed with the feasibility analysis. 6roduct2service idea is not feasible. "easons for assessment ). -escribe what you learned from your product2service concept test. +. -escribe what you learned from your buying intentions survey. ". -escribe your reasons for the number you selected on the following )#4 scale9 6roduct2service idea 6roduct2service idea may or may 6roduct2service idea is isn!t feasible not be feasible feasible ) + " $ 4 $. If your conclusion is to proceed with feasibility analysis, describe the basis of your conclusion. If you elect to proceed with your product2service feasibility analysis, describe what you learned that will help you revise or 1tweak1 your proposed business idea. If your conclusion is to proceed with the feasibility analysis, move onto the ne&t section. If you conclude that you need to write a new 6roduct27ervice ,oncept 7tatement and gather feedback, then repeat the steps in the 6roduct27ervice 3easibility section. ). Industry$*arket 'easibility In this section, you will develop an Industry2'arket 3easibility /nalysis. /n Industry2'arket 3easibility /nalysis is an assessment of the overall appeal of the market for the product or service being proposed. There are three primary issues to consider in this area: ). Industry /ttractiveness ?

+. 'arket Timeliness ". Identification of a Niche 'arket Industry attracti&eness /n industry is a group of firms producing a similar product, like airlines, fitness drinks, or electronic games. Industries vary considerably in terms of their growth rates. / primary determinant of a new business! feasibility is the attractiveness of the industry it chooses.

To assess the attractiveness of the industry your proposed business plans to enter, consider the following issues: ). -etermine the industry your proposed business plans to enter. / list of business 7I, codes, which may help you determine the industry your proposed business will operate in, is available online at http:22listsareus.com2business#sic#codes#z.htm. +. 8ate the industry your proposed business plans to enter as being strong, weak, or neutral on each of the si& criteria listed in the table below. (atings) Strong* Neutral* or +ea% ,# 1# The industry that $y business "lans to enter is) ###large and gro-ing .-ith gro-th being $ore i$"ortant than si/e0# ###i$"ortant to the usto$er# These $ar%ets ty"i ally sell "rodu ts or servi es that usto$ers 2$ust have2 rather than 2-ould li%e to have#2 ###fairly young rather than older and $ore $ature# These $ar%ets tend to be early in their "rodu t life y le* -hen "ri e o$"etition is not intense# ###high rather than lo- o"erating $argins# These $ar%ets are si$"ly $ore "rofitable for entry and o$"etition "ur"oses# ###not ro-ded# A ro-ded $ar%et* -ith lots of o$"etitors* is ty"i ally hara teri/ed by fier e "ri e o$"etition and lo- o"erating $argins# 7ON7LUSION) Based on these riteria* rate the industry your "ro"osed business "lans to enter as Attra tive .or strong0* Neutral .neither strong or -ea%0* or Unattra tive .-ea%0#

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4#

5#

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Additional 8etail In making the assessment shown below, an entrepreneur may have to conduct both primary and secondary research. 6rimary research is research that is original and is collected by the entrepreneur. In assessing the attractiveness of a market, this typically involves an entrepreneur talking to potential customers and key industry participants. 7econdary research probes data that are already collected, such as those shown in the following table. The sources of secondary research include industry#related publications, government statistics, competitors! web sites, and industry reports from respected research firms. There are also many authoritative sources of industry related data available online, as shown in the table. 'ost universities buy licenses or subscriptions to these resources and provide their students, faculty, and staff with access to them for free. / great e&ample is AibertyBs access to 7tandard C 6oorBs Net/dvantage: D

http:22www.netadvantage.standardandpoors.com.ezpro&y.liberty.edu:+5$D2N/7/pp2Net/dvanta ge2inde&.do. /s evidence that primary and secondary research has been completed, an entrepreneur should have concrete numbers relative to the market size and pro;ected growth rate of the industry that he or she plans to enter. <hen looking for funding, for e&ample, it is not good enough for an entrepreneur to simply say that the research supports that the firm will be participating in 1large and growing markets.1 Instead, an entrepreneur should provide hard data to support such a claim. *arket timeliness / second consideration in regard to the industry2market feasibility of a business idea is the timeliness of the introduction of a particular product or service. Instructions for assessing the market timeliness of your proposed business: ). -etermine whether the window of opportunity for the proposed business is open or closed. 3or an entrepreneur to capitalize on an opportunity, its window of opportunity must be open. Ese this topic to describe the market timeliness for your proposed business. 7tate whether you feel that: The window of opportunity is open. You are unsure, but leaning in the direction of thinking the window of opportunity is open. You are unsure, but leaning in the direction of thinking the window of opportunity is closed. The window of opportunity is closed. The term 1window of opportunity1 is a metaphor describing the time period in which a firm can realistically enter a new market. nce the market for a new product is established, its window of opportunity opens. /s the market grows, firms enter and try to establish a profitable position. /t some point, the market matures, and the window of opportunity closes. To make this assessment, an entrepreneur may have to complete the same type of primary and secondary research described for assessing market attractiveness. The best approach is to talk to people in the industry, or conduct meaningful secondary research, to see if new firms are still starting and if new entrants would be welcome. +. %valuate the simple economics of the marketplace regarding your potential business entry: /re your potential customer!s currently in a buying mood9 /re similar firms in your industry making money9 Is there currently a strong, a moderate, or a weak need for new entrants9 To evaluate the overall economics of the marketplace regarding your potential business entry, answer the :uestions presented in the table below with 1Yes,1 1No,1 or 1Ensure.1 !nswer Yes+ No+ *arket -conomics or ,nsure !re your potential customers currently in a buyin( mood. !re firms similar to your proposed business makin( money. !re firms similar to your proposed business enterin( into interestin( and$or profitable partnerships. Is there a compellin( need for a new firm in your F

industry /which your combination of offerin(s0. !&ailability of a niche market The final step in industry2market feasibility analysis is identifying a niche market in which the proposed business can compete. / niche market is a place within a larger market segment that represents a narrower group of customers with similar interests. 'ost successful entrepreneurial firms do not start by selling to broad markets. Instead, most start by identifying an emerging or underserved niche within a larger market. The challenge in identifying an attractive niche market is that it must be large enough to support a proposed business yet small enough to avoid direct head#to#head competition with industry leaders. If a clearly defined niche market cannot be identified, it is difficult to envision the industry2market feasibility of a new business venture. ). -escribe the niche market, which is a segment of the broader industry that you have selected, in which your proposed business will compete. +. -escribe your degree of confidence in the niche market that you have identified using the table below. "atin(s Confident+ ,nsure+ Not Niche *arket Confidence Confident The niche market I plan to enter is lar(e enou(h to support my proposed business /alon( with the firms already in the market0. The niche market I plan to enter does not compete head1to1head with industry leaders. The niche market I plan to enter is (ainin( rather than losin( momentum. 'irms within the niche market I plan to enter are makin( money.

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!ssessment of industry$market feasibility This step walks you through evaluating your industry2market feasibility analysis based on the combined results of the three previous steps. Industry2market It!s unclear whether Industry2market is not feasible for industry2market is feasible is feasible for proposed business for proposed business proposed business ) + " $ 4 Conclusion .ased on the information that you gathered for your Industry2'arket 3easibility, you need to decide how to proceed. Your choices are: 6roceed with the feasibility analysis. 6roceed with the feasibility analysis, noting concerns in the area of industry2market feasibility to guard against and2or try to overcome. 8ethink the industry the proposed business plans to enter, and conduct a new industry2market feasibility analysis before proceeding. -o not proceed with feasibility analysis. Industry2market isn!t feasible for proposed business. "easons for assessment ). -escribe what you learned from your assessment of industry attractiveness. +. -escribe what you learned from your assessment of market timeliness. ". -escribe what you learned from your assessment of the availability of an attractive niche market. $. -escribe your reasons for the number you selected on the following )#4 scale. Industry2market It!s unclear whether Industry2market isn!t feasible for industry2market is feasible is feasible for proposed business for proposed business proposed business ) + " $ 4 4. If your conclusion is to proceed with the feasibility analysis, describe the basis of your conclusion. If you elected to proceed with your feasibility analysis, noting concerns in the area of industry2market feasibility analysis to guard against and2or try to overcome, describe the most important areas you noted and how you plan to address them. If your conclusion is to proceed with the feasibility analysis, move onto the ne&t section. If you conclude that you need to rethink the industry and market you plan to enter, repeat the steps in the Industry2'arket 3easibility section.

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2. 3r(ani4ational 'easibility !nalysis /n rganizational 3easibility /nalysis is conducted to determine whether a proposed business has sufficient management e&pertise, organizational competence, and resources to successfully launch its business. There are two primary issues to consider in this area: ). 'anagement 6rowess +. 8esource 7ufficiency *ana(ement prowess / proposed business should candidly evaluate the prowess, or ability, of its management team. This means that an entrepreneur, or the group of entrepreneurs that are proposing to start a business, must complete a self#assessment. ). The sole entrepreneur or group of entrepreneurs should rate themselves on the criteria in the table below. If there is more than one entrepreneur involved, the rating should reflect the combined strength of the individuals involved. +. .ased on these criteria, candidly and ob;ectively rate the 1prowess1 of the entrepreneur or group of entrepreneurs that will be starting the proposed business. "atin(s %tron(+ Neutral+ or 5eak *ana(ement Prowess Passion for the business idea Prior entrepreneurial e6perience Prior e6perience in the industry that the business is proposin( to enter 7epth of professional and social network /number and 8uality of the people the entrepreneur or entrepreneurs know+ that could possibly help them (et their business idea off the (round0 Creati&ity /how creati&e the entrepreneur or entrepreneurs are0 Colle(e (raduate /workin( towards or ha&e obtained an under(raduate or (raduate de(ree0 Prowess of the -ntrepreneur/s0

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"esource sufficiency The second component of an organizational feasibility analysis is to determine whether the potential new venture has sufficient resources to move forward to successfully develop a product or service idea. The focus in an organizational feasibility analysis should be on nonfinancial resources in that financial feasibility is considered separately. To complete this section, you should rate your 1resource sufficiency1 (as of the date of the feasibility analysis* using the table below. The rating system used in the first portion is defined as: (atings) /vailable, Ensure (likely*, Ensure (unlikely*, Enavailable, N/ (esour e Suffi ien y ffice space Aab space, manufacturing space, or space to launch service business Gey management employees (now or in the future* Gey support personnel (now or in the future* Gey e:uipment needed to operate the business (computers, machinery, delivery vehicles* /bility to obtain intellectual property protection on key aspects of business 7upport of local (and state government if applicable* for business start /bility to form favorable business partnerships (atings) 7trong, Neutral, or <eak 6ro&imity to similar firms (for the purpose of knowledge sharing* 6ro&imity to key suppliers 6ro&imity to key customers 6ro&imity to a ma;or research university (if this variable is applicable* Overall (esour e Suffi ien y

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!ssessment of or(ani4ational feasibility %valuate the results from the previous two steps in your organizational feasibility analysis. <eak organizational Neutral organizational 7trong organizational feasibility feasibility feasibility ) + " $ 4 Conclusion .ased on the information that you gathered for your rganizational 3easibility /nalysis, you need to decide how to proceed. Your choices are: 6roceed with the feasibility analysis. 6roceed with the feasibility analysis noting concerns in the area of organizational feasibility analysis to guard against and2or try to overcome. 8ethink the organizational feasibility of the proposed business, and conduct a new organizational feasibility analysis before proceeding. -o not proceed with feasibility analysis. rganizational feasibility is not strong enough to proceed. "easons for assessment ). -escribe what you learned from your assessment of management prowess. +. -escribe what you learned from your assessment of resource sufficiency. ". -escribe your reasons for the number you selected on the following )#4 scale9 <eak organizational Neutral organizational 7trong organizational feasibility feasibility feasibility ) + " $ 4 $. If your conclusion is to proceed with the feasibility analysis, describe the basis of your conclusion. If you elect to proceed with your feasibility analysis, noting concerns in the area of organizational feasibility analysis to guard against and2or try to overcome, describe the most important areas you noted and how you plan to address them. If your conclusion is to proceed with the feasibility analysis, move onto the ne&t section. If you conclude that you need to rethink the organizational feasibility, repeat the steps in the rganizational 3easibility /nalysis section. 9. 'inancial 'easibility !nalysis 3inancial feasibility analysis is the final stage of a comprehensive feasibility analysis. 3or feasibility analysis, a :uick financial assessment is usually sufficient. 'ore effort at this point in developing the financial statements is typically not re:uired because the specifics of the business model will re:uire development first. -etailed financial statements will be re:uired in the business plan. The most important issues to consider at this stage are: 7tart#up ,apital 8e:uirements verall /ttractiveness of the Investment Capital re8uirements table /n assessment of the feasibility of raising enough money to fund the capital re:uirements and the initial operating e&penses of the business is necessary. New firms typically need money for a host of purposes, including the hiring of personnel, office or manufacturing space, e:uipment, training, research and development, marketing, and the initial product rollout. /t the feasibility analysis stage, it is not necessary for this number to be e&act or itemized. 0owever, the number should be fairly accurate and give an entrepreneur an idea of the dollar amount that will be needed to launch the firm. )$

Capital re8uirements .ased on your evaluation of your start#up capital re:uirements table, describe the feasibility of raising sufficient funds to meet these needs as: 3easible Ensure (leaning in the direction of being feasible* Ensure (leaning in the direction of being non#feasible* Non#feasible 3&erall attracti&eness of the in&estment / number of other financial factors are associated with promising business opportunities. In the feasibility analysis stage, the e&tent to which a business opportunity is positive relative to each factor is based on an estimate, or forecast, rather than actual performance (or detailed forecasts of future performance*.

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The following factors are important to assess in regard to the overall financial attractiveness of the proposed business. /ssess the likelihood of each of these factors being positive in the first )# " years of the proposed business: (atings) Aikely, Ensure (likely*, Ensure Attra tiveness of Invest$ent (unlikely*, Enlikely 7teady and rapid growth in sales during the first one to three years in a clearly defined market niche 0igh percentage of recurring revenue## meaning that once you win a client, the client will provide a recurring sources of revenue /bility to forecast income and e&penses with a reasonable degree of accuracy Internally generated funds will be available within two years to finance and sustain growth 6rofitability will be reached within one year /vailability of an e&it opportunity (such as an ac:uisition or in initial public offering* for investors to convert e:uity into cash (atings) 7trong, Neutral, or <eak Overall Finan ial Attra tiveness +. .ased on these criteria, rate the overall financial attractiveness of your proposed business as: 7trong Neutral <eak !ssessment of financial feasibility This step is provided to evaluate the feedback you received from the three steps of your financial feasibility analysis. .ased on the combined results of these steps, 6roposed business is not 6roposed business may or may not 6roposed business is financially feasible be financially feasible financially feasible ) + " $ 4

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Conclusion .ased on the information that you gathered for your 3inancial 3easibility /nalysis, you need to decide how to proceed. Your choices are: 6roceed with feasibility analysis 6roceed with feasibility analysis, noting concerns in the area of financial feasibility analysis to guard against and2or try to overcome. 8ethink the financial feasibility of the proposed business, and conduct a new financial feasibility analysis before proceeding. -o not proceed with feasibility analysis. 3inancial feasibility is not strong enough to proceed. "easons for assessment ). -escribe what you learned from your assessment of start#up capital re:uirements. +. -escribe what you learned from your assessment of the overall attractiveness of the investment. ". -escribe your reasons for the number you selected on the following )#4 scale9 6roposed business is not 6roposed business may or may not 6roposed business is financially feasible be financially feasible financially feasible ) + " $ 4 $. If your conclusion is to proceed with the feasibility analysis and ultimately the business plan, describe the basis of your conclusion. If you elected to proceed with your feasibility analysis, noting concerns in the area of organizational feasibility analysis to guard against and2or try to overcome, describe the most important areas you noted and how you plan to address them. If your conclusion is to proceed with the feasibility analysis, move on to the ne&t section. If you conclude that you need to rethink the financial feasibility, repeat the steps in the 3inancial 3easibility /nalysis section.

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:. 'easibility !nalysis "esults This section will provide you with an overall sense of the feasibility of your proposed business idea. 5ei(htin( the four feasibility analysis components Esing your ;udgment, assign a percentage weight to each area of your feasibility analysis in the table below. The percentages you assign for the four areas must e:ual )55H or ).5. 6roduct2service feasibility analysis (.+4* Industry2market feasibility analysis (.+4* rganizational feasibility analysis (.+4* 3inancial feasibility analysis (.+4* Additional 8etail Not all of the four areas of feasibility analysis, product2service feasibility, industry2market feasibility, organizational feasibility, and financial feasibility may have e:ual weight for your proposed business idea. 3or e&ample, you may already have the money in place to launch your proposed business, so financial feasibility is not an immediate concern. 0owever, you may be unsure of the industry2market feasibility of your business idea. In this case, you might want to assign a weight of less than +4H to financial feasibility analysis and a weight of more than +4H to industry2market feasibility analysis. -6plain wei(hts Ese this topic to describe the weights that you assigned in the table from the previous step. <rite a brief, but detailed e&planation of the rationale you used for assigning the different weights to each of the four ma;or analysis components. If you have chosen to use e:ual weights for all four analysis components, e&plain why you did not differentiate each component. Numerical assessment table The following data are the result of your feasibility analysis assessments. /ll assessments are based on a )#4 scale with the &alue of ;1< bein( ;=ery Infeasible< and the &alue of ;2< bein( ;=ery 'easible<. The <eighted /verage calculation takes into account the percentage weighting that you did in the previous table. Numerical assessment of the feasibility of the new business idea Ese this topic to: ). 7ummarize the numbers that you assigned to rate each feasibility component in the previous sections. +. -escribe the Numerical /ssessment table which will follow this topic in your printed plan. Conclusions Ese this topic to write your conclusion based on the four components of the feasibility analysis that you have completed. The averages shown in the Numerical /ssessment table should be used for guidance purposes only. There is no conceptually accurate 1cutoff1 for whether a proposed business idea is or is not feasible. The number represents one piece of information that you can use to determine whether it is a good use of your time and resources to proceed with your business idea. You should also remember that the proper e&ecution of a business idea is of paramount importance. / highly feasible proposed business idea can easily fail in the hands of a careless or an ine&perienced entrepreneur, while a business idea that is weaker from a feasibility analysis standpoint can soar in the hands of a highly competent and passionate team of entrepreneurs. The feasibility analysis is an important process prior to launching a new venture. 'any businesses fail, not because the entrepreneurs involved did not work hard or were not committed, )D

but rather they failed because the business idea was not feasible in the first place. /s a result, the numbers generated from this analysis should be taken seriously. 'uch of the content that you have produced for the feasibility analysis can and should be used in the forthcoming business plan that you will be developing.

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