Not the Business Plan Feasibility study conducted before decision to proceed (go/no go). Business plan prepared after decision to proceed (go/no go). Feasibility.

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Presentation transcript:

Not the Business Plan Feasibility study conducted before decision to proceed (go/no go). Business plan prepared after decision to proceed (go/no go). Feasibility study provides investigative function. Business plan provides planning function.

Feasibility Study Outline 1) Description of the Process: Identification and exploration of business scenarios. Define the project and alternative scenarios. Relationship to the surrounding geographical area.

Feasibility Study Outline 2) Market Feasibility Industry description. Industry competitiveness. Market potential Access to market outlets.  Sales projection

Feasibility Study Outline 3) Technical Feasibility Determine facility needs. Suitability of production technology. Availability and suitable of site. Raw materials. Other inputs.

Feasibility Study Outline 4) Financial/Economic Feasibility Estimate the total capital requirements. Estimate equity and credit needs. Budget expected costs and returns.

Feasibility Study Outline 5) Organizational/Managerial Feasibility Business Structure Business Founders

Feasibility Study Outline Study Results Identify and describe various business scenarios. Compare and contrast scenarios. Outline criteria for decision making.

When to Do & How to Use When to do a Study? Who will do the Analysis? How will you Monitor the Study Progress? How to Accept or Reject the Study? How to Use the Results?