Business Planning for a New Venture

The Feasibility Analysis

Feasibility Analysis Outline
 EXECUTIVE SUMMARY
 Do this last

 PRODUCT/SERVICE DESCRIPTION
 Purpose of the business
 Description and uses
 Design and unique features
 The primary customer
 Spin-offs
 Environmental impact
Feasibility Analysis Outline

 MANAGEMENT TEAM
 Qualifications
 Gap analysis
Feasibility Analysis Outline
 MARKET ANALYSIS
 Industry Description
 Industry Size
 Industry status (growing, mature, in decline)
 Growth potential
 Geographic locations
 Trends and entry barriers
 Profit potential
 Sales patterns and gross margins
Feasibility Analysis Outline
 MARKET ANALYSIS
 Target Market
 Primary target markets
 Secondary markets
 Demographics
 Customer needs analysis
 Product/Service Differentiation
 Unique features
 Potential for innovation
Feasibility Analysis Outline
 MARKET ANALYSIS
 Competitors
 Direct and indirect
 Market share
 Description
 Strengths and weaknesses
 Emerging
 Substitute products
Feasibility Analysis Outline

 MARKET ANALYSIS
 Competitive Advantage
 Proprietary protection
 Other competitive advantages
Feasibility Analysis Outline
Operational Analysis


Technical Description of Product/Service

 Uses, design, prototype

 Issues of obsolescence
Distribution Channels

Statusof Development and Related Costs

 Current status of development
 Tasks to be completed, time and cost to complete
 Potential difficulties, resolution
 Government approvals
 Feasibility Analysis Outline
 Operational Analysis
 Manufacturing or Operating Requirements and Associated

Costs
 Manufacturing cycle
 Materials requirements
 Inventory requirements (also retail/wholesale business)
 Production requirements (also retail/wholesale or service)
 Labor requirements (all businesses)
 Maintenance and quality control requirements (all businesses)
 Financial requirements (all businesses)
 Feasibility Analysis Outline
 MARKETING PLAN
 Pricing
 Venture versus competitors
 Value chain
 Purpose of Marketing Plan
 Target market
 Unique market niche
 Business identity
 Marketing Tools
 Advertising & promotion
 Media Plan
 Uses and costs of specific marketing tools
 Marketing Budget
 Individual costs and total costs as a percentage of sales
Feasibility Analysis Outline

 FINANCIAL PLAN
 Simple Profit and Loss Statement
 Drive all financial assumptions from expected costs, not sales
projections.
 Try and avoid as many fixed costs as possible. Outsource
 Feasibility Analysis Outline
 CONTINGENCY PLAN
 Deviations from the Original Plan and Solutions
 DEAL STRUCTURE
 Debt and/or Equity Funding Amounts
 Projected Return on Investment