The Entrepreneurial Mind Page 1 of 5

Feasibility Plan Outline

TITLE PAGE

Name of Proposed Company:

Names and titles of the founding team members:

Relevant Contact Information (name, title, address, phone, e-mail)

TABLE OF CONTENTS

Ensure that all of the contents in the feasibility plan have page numbers and are listed carefully
in the table of contents.

I. Executive Summary

II. The Business Concept

III. Industry/Market Analysis

IV. Management Team

V. Product/Service Development Plan

VI. Financial Plan

VII. Timeline

VIII. Bibliography

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Feasibility Plan Outline

I. EXECUTIVE SUMMARY

Include the most important highlights from each section of the feasibility study. Include a clear
and concise description of the venture, whatever proprietary aspects it may posses, the target
market, the amount of nancing needed, and the type of nancing that is being requested.

II. THE BUSINESS CONCEPT

Using the following key concepts, articulate a compelling story that explains why this is an
excellent business concept. This section allows the investor to understand what concept is
being proposed and why it has true potential in the marketplace. It also provides and
opportunity for the entrepreneur to prove that he or she can articulate this concept in clear and
comprehensible terms to people outside their circle of friends and close associates.

KEY CONCEPTS

A. Describe whether the proposed concept is a retail, wholesale, manufacturing, or service

business. Identify the current stage of development for the venture (concept stage, start-
up, initial operations, or expansion).

B. Include a clear description of the targeted customer, the value proposition (in terms of
bene ts gained) for that customer, and the potential growth opportunities.

C. Summarize any proprietary rights associated with this concept, whether that be patents,
copyrights, licenses, royalties, distribution rights, or franchise agreements.

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Feasibility Plan Outline

III. INDUSTRY/MARKET ANALYSIS

This industry and/or market analysis is critical.

• Is there a market for the product or service resulting from the venture?

• What are the current trends in this industry?

• What are the predicted trends for this industry?

• Can any of this be sustained, and for how long?

The market for the product or service may be obvious, yet the feasibility analysis must validate
its existence. In the venture feasibility analysis, it may be enough to prove that a su cient
market exists for the venture and that no further in-depth research is warranted. However,
entrepreneurs should always study their competition in the marketplace. Lessons learned from
competitors provide opportunities for entrepreneurs to nd the unique distinctions in their own
concept.

KEY CONCEPTS

Explain the industry that this concept focuses on, as well as whatever trends may exist in that
particular industry today.

Helpful tools that can be used for the analysis:

(1) SWOT Analysis. In this section, discuss the O (Opportunities) and the T (Threats)
facing the proposed venture.

(2) Porter’s 5 Forces. This tool will help the analyze the existing and potential
competition and business partners of the proposed venture.

At the very least, include a competitor analysis that describes thoroughly the
competition existing today and how speci cally your concept will match up or
exceed the competition and why.

(3) Marketing Plan. This tool will help the entrepreneurs identify and analyze the
critical marketing aspects a ecting the business venture.

At the very least, discuss the target market analysis to be used, identify the
possible speci c market niche, the market size, the growth potential, and the
market penetration plan based on research.

Explain the customer pro le in terms of who the speci c customer is and what
unique value proposition (in terms of bene ts) is being o ered the customer.

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Feasibility Plan Outline

IV. MANAGEMENT TEAM

Keep in mind that all new ventures must stand the scrutiny of whether the founding team can
really move this idea to market. Many times, investors (e.g., venture capitalists) have expressed
their belief that they prefer a “B” idea with an “A” team as opposed to an “A” idea with a “B”
team. Does this founding team have the background, experience, skills, and networks to make
the business concept operationally successful?

KEY CONCEPTS

Identify the founding team members and the key personnel in place who will manage and
guide the proposed venture.

Explain the team’s quali cations and how the critical tasks are being assigned. Also include
any board of directors/advisors/consultants that are in place.

Outline any “gaps” in the management team (in terms of skills and abilities) and explain how
those will be addressed.

V. PRODUCT OR SERVICE DEVELOPMENT PLAN

Determine whether the product or service conceptualized has any practical feasibility.
Important guiding question: “What are the unique features that distinguish your product or
service from the rest of the competition?” The more unique the features of a product or service,
the better chance the business concept has of being successful.

KEY CONCEPTS

Provide a detailed description of the proposed concept, including any unique features that
make it distinctive.

Determine the current status of the project and include a clear timeline of the key tasks to
complete that will lead to the full development of the product or service before, upon or after
introduction to the marketplace.

Identify any intellectual property involved with this potential venture, and discuss the
proprietary protection that exists. Describe any proposed or completed prototype testing.

Identify any anticipated critical risks in terms of potential product liability, governmental
regulations, or raw material issues that may hinder this project at any stage.

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Feasibility Plan Outline

VI. FINANCIAL ANALYSIS

KEY CONCEPTS

Assumptions Summarize the critical assumptions upon which the nancial information
(provided in this section) is based; in other words, show how the numbers are derived.

Pro Forma Income Statement and Pro Forma Cash ow Statement A pro forma income
statement and a statement of cash ows are the two most critical nancial documents to add
here. These statements should show the preliminary outside sources of income for the
generation of revenue and the cash position of the venture during the rst three years of
operation of the venture.

Break Even Analysis This analysis should show how the venture moves from startup to
survival to growth.

VII. TIMELINE

Use a graphic representation of the dates and related tasks or activities in the order of their
completion until the actual concept (i.e., product or service) launch.

VIII. BILBIOGRPAHY

Provide any key endnotes, footnotes, sources, or extra information that would be critical for a
funding source to see in relation to the work you performed in creating this feasibility study.

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