Begin or End With an Executive Summary The word "summary" is key here. Highlight the key points of each section you'll include in your technical feasibility report. You can do this in advance to provide yourself with a sort of guideline or skeleton to follow as you prepare your study. It is often easier and more concise to write it after you've finished, so you have the information you want to include right in front of you.
A technical feasibility study assesses the details of how you intend to
deliver a product or service to customers. Materials, labor, transportation, where your business will be located, and the technology that will be necessary to bring all this together. It's the logistical or tactical plan of how your business will produce, store, deliver, and track its products or services.
A technical feasibility study is an excellent tool for both troubleshooting
and long-term planning. It can serve as a flowchart of how your products and services evolve and move through your business to physically reach your market.
Calculate Labor Requirements
You can't run a business, offer services, without the help of others and that help will cost you. Even if you start your business as its only employee, you'll have to add to your labor pool at some point if you plan to grow.
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You can break labor into categories if necessary, such as senior-level
management, office, and clerical support, distribution staff, professional staff including, accountants, engineers, and marketing, and fulfillment employees—those in the mailroom or shipping department.
Transportation and Shipping Requirements
How will you transport items if you must send them from one place to another? Smaller items can be shipped via local carriers, DHL, or USPS, but heavy or bulk items must be transported via a trucking company.
If you're shipping perishable items, you'll need special overnight
handling. You might also need special permits to ship certain items, and nonprofit organizations should consider applying for discounted postal rates. These are all things that affect the “how” of moving your goods from one place to another.You will need a licensed distributor
Calculate Marketing Requirements
It is a crucial consideration because your business will fail without them. It's something investors will be keen to know. Go beyond simple advertising plans, although this is important, too. Exactly what type of advertising campaign do you plan to launch? Will you lean more heavily on print media or other options and what consumers will you target? Explain why they would want to buy from you rather than any of your competitors.
The Physical Location of Your Business
Where you run your business will have an effect on your success. If you're starting in a home-based office, determine when and if you'll need a “brick and mortar” office at some point in the future—office space outside your home. Will you eventually need warehouse facilities, your factory, or your trucking facility? Will you require a retail
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storefront or any other purchased or rented facilities to conduct your
business you should have to know about it.
Technology Requirements to Run Your Business
Every business needs at least some kind of technology to operate. The technology component of your feasibility study should include discussions about telephone answering systems, computer hardware and software, and inventory management. Don't overlook items like cash registers and potentially the ability to accept credit cards and process checks.
Summary of the Technical Feasibility Study
Be sure to include all the technical requirements of your business from distribution to customer receipt. This information will help investors know more about the operations of your business.
Having a great idea for a product or business isn't enough—you have to
show how you can make money from it. The technical feasibility study addresses the physical and logistical mechanics of it, and how you'll be able to get something into the product and back out the door to customers.