Feasibility Analysis

Week 3

Barringer, B. R. (2015). Entrepreneurship: successfully launching new ventures. Pearson Education India.
 
 What Is Feasibility Analysis

• Feasibility analysis is the preliminary

evaluation of a business idea conducted to
determine whether the idea is viable and
worth pursuing.
 When To Conduct a Feasibility Analysis

• Timing of Feasibility Analysis

– The proper time to conduct a feasibility analysis is early in
thinking through the prospects for a new business.
– The thought is to screen ideas before a lot of resources are
spent on them.
• Components of a Properly Conducted Feasibility
Analysis
– A properly conducted feasibility analysis includes four
separate components, as discussed in the following slides.
 Role of feasibility analysis in creating business ideas

Source: Barringer, B. R. (2015).

Entrepreneurship: successfully 3-4
launching new ventures
 Components of industry/target market
feasibility analysis

• Industry Attractiveness
• Target Market Attractiveness
 Organizational Feasibility Analysis

Components of organizational feasibility analysis

• Management Prowess
• Resource Sufficiency
 Financial Feasibility Analysis

• Financial Feasibility Analysis is the final section of a

comprehensive feasibility analysis.

• It is sufficient to do a preliminary financial assessment.

 Components of Financial Feasibility Analysis

1. Total start-up cash needed

2. Financial performance of similar businesses
3. Overall financial attractiveness of the proposed
venture
Product/Service Feasibility Analysis

Components of product/service
feasibility analysis

Product/Service Product/Service
Desirability Demand

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