1. Feasibility Study The First step in any business plan

2. Business development planning. Why? “Plans are nothing….Planning is everything”.

3. Feasibility Study Proposal Worth 25% of subject 1,500 words Must outline the Project Concept and the proposed research plan Project management & time management are key skills to develop for this challenge

4. Feasibility Study Proposal Breakdown of marks allocation 35% - Project Concept Definition 35% - Research Structure 15% - Time Planning 15% - Realism of Resource Allocation

5. Feasibility analysis: Feasibility analysis is the process of: – Determining whether an entrepreneur’s idea is a viable foundation for creating a successful business. – Is to determine whether a business idea is worth pursuing. – If the idea passes the feasibility analysis, the entrepreneur’s next step is to build a solid business plan for capitalizing on the idea. It is not the same as a business plan, both play important but separate roles in the start up process.

6. Feasibility analysis: Feasibility study: – Answers the questions “ Should we proceed with this business Idea” – Its role is to serve as a filter, screening out ideas that lack the potential for building a successful business, before an entrepreneur commits the necessary resources to building a business plan.

7. Overview: The Feasibility Study is designed to enable companies and entrepreneurs establish if a project concept has commercial potential, what resources are necessary to achieve commercial reality and to prepare a business plan detailing the steps necessary to implement the project. Your feasibility study should include:

8. Details of Promoter  Name & Address  Work Experience  Qualifications & Educational Background

9. Project Concept:  Where the concept/project idea came from.  What opportunity currently exists etc  Target market & Customers

10. Research Proposal  What will be done under this work program  What will be the objective/outcome

11. Elements of Feasibility Analysis Three interrelated components – Industry and Market Feasibility Analysis – Product or service Feasibility Analysis – Financial Feasibility

12. Elements of Feasibility study Industry and Market Feasibility: The main aims of the feasibility project are to:  Establish the size, structure and dynamics of the market for the product/service  Profile potential customers in terms of sector, spend, requirements etc.  Profile competing products and competitors Assess distribution and sale methods  How crowded the industry is?  What trends are shaping the industry future?  Is the industry as a whole profitable?

13. Elements of the Feasibility Study  Product or service feasibility  Determine the degree to which a product or service idea appeals to potential customers and identifies the resources necessary to produce the product or provide the service  It addresses two questions:  Are customers willing to purchase our goods and services?  Can we provide the product or service to customers at a profit?  Your will need to do:  Primary Research  Secondary Research  Focus Group  Demographic data  Market Research

14. Elements of the Feasibility Study  Financial Feasibility Analysis:  The financial feasibility analysis involves assessing the financial feasibility of the proposed business venture.  Capital Requirement  Estimated Earning  ROI

15. Aims of the Feasibility Project  Assess resource requirements to establish project  Prepare comprehensive business plan  Evaluate organisation structure and sources of investment finances

16. Market Research Checklist Mkt size Mkt structure Mkt trends Mkt potential Mkt share

17. Competitor Research Competitor activity Competitor prices Competitor products / services Competitor product portfolio analysis (Boston Box)

18. External Factors Research (PESTEL) Government Factors Economic Factors Demographic Factors etc

19. Personal Skills Assessment Training needs analysis Three types of skill sets required; 1. Training in start up analysis and planning (research etc) 2. Traning in start-up management and operations 3. On-going business mgt skills (post systemisation).

20. Gap analysis List your skills List your experience What skills are required for the planned business? Where are the gaps? How do I bridge them?

21. Thank you – `Q&A