Feasibility Studies Dr. David W. Hughes Professor and Community Development Program Leader Clemson University Clemson Institution for Economic and Community Development Clemson University Center for Economic Development Department of Applied Economics & Statistics

Feasibility Studies Large variety in scale: – Can range from studying specific project for a current operation or business Adding a product line such as does the farm get in the agri- tourism business? – To a major projects by an organization Developing a large regional farmers’ market. For all scales, major principles hold – Who benefits? – Is the project sustainable? – Who are potential partners? – What are my risks?

Big Project Example: Business Incubator for Clinton SC – Major Elements Number and type of tenants (new small businesses), Entrepreneurial support network, Local business services (especially reduced or free!), Capital $, Community buy-in, Possible facilities. – Process Worked closely with locally leaders Formed local leadership group (government, support, businesses) to access or rate each element.

Application for Agribusiness: Things to Consider: Demand or Need Side What is the need of demand for your business? Or who is your target market? – Lifestyle types (young couples w-without small children; retirees) – Income – Market region or draw (Grand Strand for Horry County) What will draw these customers? Or, what are your assets? How will you draw them? Who are possible or actual competitors? Because similar businesses usually cluster, how can you work with or “live off ” similar businesses especially large businesses? – Near Brookgreen Gardens, draw from their visitor base – Have a cluster of neighboring farms offering similar but different experiences

Supply or Cost Side What will be my start-up cost? What will be my operating cost? What are my current or potential assets- how can I use them to minimize or reduce my cost? Ultimately, will the project be sustainable or profitable? How will I obtain required funds?

Risks Personal: – What will be the impact on my-family time? – Do I have family key employee buy-in? Is this really a good idea? Do we really have commitment assets to carry-out a plan? What happens if we are not successful? – Need to plan so that loss of assets are minimized

Help! What are sources of easily available and cheap (free?) help? – Asset mapping approach – Other entrepreneurs (agri-tourism association!) – Entrepreneur assistance (SBDC) – Entrepreneur training (FastTrac)