Feasibility and Business Planning Back to Table of Contents UNIT 2 Researching & Planning Your Venture

Feasibility and Business Planning 2 Read & Define Warm –up Read pages 94 & 95 of Chapter 5.1 Define: business concept feature benefit feasibility analysis

Feasibility and Business Planning 3 Discuss the importance of defining a prospective business by writing a clear and concise business concept. Describe how a feasibility study can be used to test a concept in the marketplace. Section 5.1 Feasibility Analysis: Testing an Opportunity 5.1

Feasibility and Business Planning 4 Developing a Business Concept Once you have a idea for a new business, define it by writing a clear and concise business concept. business concept a clear and concise description of a business opportunity; it contains four elements: the product or service, the customer, the benefit, and the distribution Section 5.1 Feasibility Analysis: Testing an Opportunity

Feasibility and Business Planning 5 Developing a Business Concept In developing a business concept, consider the features and benefits your product or service offers. features distinctive aspects, qualities, or characteristics of a product or service Section 5.1 Feasibility Analysis: Testing an Opportunity benefits things that promote or enhance the value of a product or a service to the customer

Feasibility and Business Planning 6 Developing a Business Concept When developing a business concept an entrepreneur must ask the following questions: What is the product or service being offered Who is the customer? What is the benefit that is being provided? How will the benefit be delivered to the customer? Section 5.1 Feasibility Analysis: Testing an Opportunity

Feasibility and Business Planning 7 Testing the Concept in the Market An entrepreneur can use a feasibility analysis in order to decide if there is enough demand for a product or service. feasibility analysis the process that tests a business concept; it allows the entrepreneur to decide whether a new business concept has potential Section 5.1 Feasibility Analysis: Testing an Opportunity Should I proceed with this business?

Feasibility and Business Planning 8 Let’s Practice In your table groups, discuss what you have learned today. Together, write a compelling, clear & concise business concept statement for DECA Custom Designs. Be sure to refer back to your notes on questions to address. Here is a sample of one: “Eastside Sports offers sporting equipment and apparel to local teams and people who play sports. It provides the convenience of one-stop shopping at a retail outlet in the customer’s own neighborhood.”