Feasibility Analysis Outline Writing and Presenting a Business Plan Chapter 2

Feasibility Analysis Outline EXECUTIVE SUMMARY Do this last PRODUCT/SERVICE DESCRIPTION Purpose of the business Description and uses Design and unique features The primary customer Spin-offs Environmental impact

Feasibility Analysis Outline MANAGEMENT TEAM Qualifications Gap analysis

Feasibility Analysis Outline MARKET ANALYSIS Industry Description Industry Size Industry status (growing, mature, in decline) Growth potential Geographic locations Trends and entry barriers Profit potential Sales patterns and gross margins

Feasibility Analysis Outline MARKET ANALYSIS Target Market Primary target markets Secondary markets Demographics Customer needs analysis Product/Service Differentiation Unique features Potential for innovation

Feasibility Analysis Outline MARKET ANALYSIS Competitors Direct and indirect Market share Description Strengths and weaknesses Emerging Substitute products

Feasibility Analysis Outline MARKET ANALYSIS Competitive Advantage Proprietary protection Other competitive advantages

Feasibility Analysis Outline Operational Analysis Technical Description of Product/Service Uses, design, prototype Issues of obsolescence Distribution Channels Status of Development and Related Costs Current status of development Tasks to be completed, time and cost to complete Potential difficulties, resolution Government approvals

Feasibility Analysis Outline Operational Analysis Manufacturing or Operating Requirements and Associated Costs Manufacturing cycle Materials requirements Inventory requirements (also retail/wholesale business) Production requirements (also retail/wholesale or service) Labor requirements (all businesses) Maintenance and quality control requirements (all businesses) Financial requirements (all businesses)

Feasibility Analysis Outline MARKETING PLAN Pricing Venture versus competitors Value chain Purpose of Marketing Plan Target market Unique market niche Business identity Marketing Tools Advertising & promotion Media Plan Uses and costs of specific marketing tools Marketing Budget Individual costs and total costs as a percentage of sales

Feasibility Analysis Outline FINANCIAL PLAN Simple Profit and Loss Statement Drive all financial assumptions from expected costs, not sales projections. Try and avoid as many fixed costs as possible. Outsource

Feasibility Analysis Outline CONTINGENCY PLAN Deviations from the Original Plan and Solutions DEAL STRUCTURE Debt and/or Equity Funding Amounts Projected Return on Investment