PowerPoint Presentation  Section 5.1  Pages 75-79

What you’ll learn  The background of entrepreneurs  How to turn your idea into a business concept 5.1 Feasibility Analysis: Testing an Opportunity

What you’ll learn  How to test your concept in the marketplace with a feasibility study  How to make a conception grid 5.1 Feasibility Analysis: Testing an Opportunity

Why it’s important  Not every idea can become a good business.  Ideas must be tested before they are put into the marketplace. 5.1 Feasibility Analysis: Testing an Opportunity

Key Terms business concept feature feature benefit benefit feasibility analysis feasibility analysis target customers target customers competitive grid competitive grid 5.1 Feasibility Analysis: Testing an Opportunity

Springboard Generate ideas for an after school delivery service.

I. DEVELOPING A BUSINESS CONCEPT A business concept is an idea for a new business that can be tested. 5.1 Feasibility Analysis: Testing an Opportunity

II. THE BUSINESS CONCEPT A. To build a business concept statement, answer four questions. 5.1 Feasibility Analysis: Testing an Opportunity

1. What is the product or service being offered? 2. Who is the customer? 3. What is the benefit you are providing? 4. How will you get the product or service to the customer? 5.1 Feasibility Analysis: Testing an Opportunity

B. A feature is a distinctive aspect, quality, or characteristic of a product or service. 5.1 Feasibility Analysis: Testing an Opportunity

C.A benefit is something that promotes or enhances the value of the product or service to the customer. 5.1 Feasibility Analysis: Testing an Opportunity

III. WRITE A CONCEPT STATEMENT Company X provides goods and/or services to a specific market. It provides these benefits.

5.1 Feasibility Analysis: Testing an Opportunity IV. TESTING THE CONCEPT IN MARKET A feasibility analysis is used to determine if a business concept is practical. It answers two questions.

5.1 Feasibility Analysis: Testing an Opportunity A. Are there customers who want what you have to offer? B. What conditions must be present for you to go forward with your business?

5.1 Feasibility Analysis: Testing an Opportunity V. TESTING PRODUCT OR SERVICE REQUIREMENTS A. Information to gather includes trends, barriers to entry, and profit margins.

5.1 Feasibility Analysis: Testing an Opportunity B. Will the industry support your new business?

5.1 Feasibility Analysis: Testing an Opportunity VI. TALKING TO CUSTOMERS Target customers are those most likely to buy your products and services.

5.1 Feasibility Analysis: Testing an Opportunity VII. STUDYING THE COMPETITION Create a competitive grid to organize important information about your competition.

5.1 Feasibility Analysis: Testing an Opportunity Competitive Grid

5.1 Feasibility Analysis: Testing an Opportunity VIII. THE COMPETITIVE GRID A. The competition B. Customers C. Benefits D. Distribution D. Distribution E. Strength and weaknesses E. Strength and weaknesses

5.1 Feasibility Analysis: Testing an Opportunity IX. LOOKING AT START UP RESOURCES NEEDED How much money does it take?

5.1 Feasibility Analysis: Testing an Opportunity A. Purchase or lease equipment and a facility. B. Pay employees. C. Finish product development. D. Carry the company’s expenses until you have enough sales for the business to operate on its own.

5.1 Feasibility Analysis: Testing an Opportunity End of Section 5.1