FEASIBILITY

REPORT
Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

Presented by:
Naseeb Ali (2011-EE-502)
Yasoon Aslam (2011-EE-504)

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

Feasibility
Report

Study/Anal
ysis

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

Report
Writing

WhatisFeasibilityStudy/
Analysis?
Feasibilityanalysisis
the
processofdeterminin
gifabusinessideais
viable or is this a
good business idea?

Feasibility Report

Feasibility
Study/Analy
sis?

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

Helps answer the

question of whether
to go forward with
the business idea.

TheFollowing QuestionsThatCanBeAnswered
ByAFeasibilityStudy:
Isthereademand for theproduct?
Whoelseis producingsimilar products?
Whatisneededto maketheproduct?
whatisthecostof producingaproduct?
Whatisthelikely profit?

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

Simply..
To reduce the risk of failure and losing money, potential producers should go
through the different aspects of running their business in discussions with
friends and advisors before they commit funds or try to obtain a loan. This
process is known as doing a feasibility study. When the results are written
down, the document is known as a feasibility report.

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

A Feasibility Study is Valuable

for:
Starting a new business
Expansion of an existing business
Adding an enterprise to an existing business
Purchasing an existing business

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

A Feasible Business will:

Generate adequate cash flow and profits,
Withstand risks,
Remain viable in the long-term
Meet the goals of the founders

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

Reasons to Do a Study
Gives focus to the project.
Narrows the business alternatives.
Identifies new opportunities.
Identifies reasons not to proceed.
Provides valuable information for go/no go decision.
Increases probability of business success by identifying weaknesses early
Provides documentation that the idea was thoroughly investigated.
Helps attract funding from lenders, grant providers, etc.
Helps attract equity investment

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

Feasibility Study Outline

Description of the process
Market feasibility
Technical feasibility
Financial/Economic feasibility
Organizational/Managerial feasibility

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

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Market Feasibility
Industry description.
Industry competitiveness.
Market potential
Access to market outlets.
Sales projection

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

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Technical Feasibility
Determine facility needs.
Suitability of production technology.
Availability and suitable of site.
Raw materials.
Other inputs.

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

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Financial/Economic Feasibility
Estimate the total capital requirements.
Estimate equityandcredit needs.
Budget expected costs and returns.

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

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Organizational/Managerial
Feasibility
Business structure

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

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Report Writing
Introduction
Body
Subject-by-Subject
Point-by-Point
Conclusion confusion

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

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Introduction
Since feasibility reports are used to solve a problem by comparing two (or more)
solutions to the problem in a fair and objective manner, the introduction to a feasibility
report must
Identify and explain the problem that needs solving;
Specify two (or more) solutions to the problem; and
Specify the two (or more) criteria that will be applied to each solution to see which of the
solutions best solves the problem.

Note: sometimes the criteria are referred to as standards of judgment, as bases of

comparison, or as points of comparison. Only one of these terms should be used in a given
feasibility report.

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

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Body
The body of a feasibility report is always organized using the comparison/contrast
pattern of organization
Note: a pattern of organization may sometimes be referred to as a rhetorical strategy.
The two versions of the comparison/contrast pattern of organization that may be
applied to the body of a feasibility report are known as
Subject-by-Subject Organization or
Point-by-Point Organization
Note: when the number of subjects (solutions) being compared/contrasted is four or
fewer, either of these two organizations may be used in the feasibility report, but when
the number of subjects (solutions) being compared/contrasted is five or more, the
point-by-point version is the best one to be used.

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

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Subject by Subject
When using this means of organizing a feasibility report, the report writer
should divide the body of the report into the same number of sections as
there are subjects (solutions) being compared/contrasted.
Then each section is subdivided into the same number of subsections as
there are criteria being applied to the subjects.
Then each subsection discusses the merits of one subject (solution) when
all the criteria are applied to it.
The end of each section states the conclusion that is reached by applying
the criteria to all the subjects.

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

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Point by Point
When using this means of organizing a feasibility report, the report writer
should divide the body of the report into the same number of sections as
there are criteria being applied to the subjects (solutions).
Then each section is subdivided into the same number of subsections as
there are subjects being analyzed.
Then each subsection discusses the merits of all the subjects when one
criterion is applied to them.
The end of each subsection states the conclusion that results from the
application of the criterion to all subjects.

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

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Conclusion
The last section of a feasibility report two important tasks must be performed:
Summarize the conclusions resulting from the study
Make a recommendation as to which solution best solves the problem of the study.

Note: sometimes a feasibility report is called a recommendation report.

Feasibility Report

ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

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