1. Feasibility and Business Planning
Unit 2, Chapter 5
Page

2. Feasibility and Business Planning
After completing this chapter, you’ll be able to:
Discuss the importance of defining a prospective business by writing a clear and concise business concept
Describe how feasibility studies can be used to test concepts
Describe the components and formats of a Business Plan
Describe how to professionally package and present a Business Plan

3. Feasibility and Business Planning
Definition 1-
A (n) _________ is a clear and concise description of an opportunity
Business Concept
It contains four elements: Product/Service, Customer, Benefit(s), and Distribution
Answer these elements as questions

4. Feasibility and Business Planning
Definition 2
_____________a distinctive aspect, quality, or characteristic of a product or service
Feature
Definition 3
Something that promotes or enhance the value of a product or service is a ____________
Benefit
After you answer the questions you can write a concept statement

5. Feasibility and Business Planning
Once you have a clear and concise concept statement, ask yourself “What is the compelling reason for this business to exist?”
Once you answer that question, you can begin to shape your concept

6. Feasibility and Business Planning
Testing the Concept
Definition 4
A _______________ is the process used to test a business concept
Feasibility Analysis
The FA helps an entrepreneur decide whether this new concept has potential

7. Feasibility and Business Planning
The FA also helps to decide if there is enough demand and whether business conditions are appropriate to move forward
The FA asks questions relating to the industry, customers, product/service requirements, founders, competition and start-up needs

8. Feasibility and Business Planning
Create a Competitive Grid
The CG is a tool for organizing information about the Competition
Column 1- Direct and Indirect Competitors
Column 2- Primary Target Customers
Column 3- Benefits of the Competitor
Column 4- Distribution
Column 5- Strengths/Weaknesses

9. Feasibility and Business Planning
Look at your Start-Up resource needs
Definition 5
A _____________ describes how you intend to make money with your business concept
Business Model
What are things you would need to purchase?

10. Feasibility and Business Planning
Purchase or lease equipment, furnishings, and a facility
Starting inventory/supplies
Pay employees
Finish product development
Carry the company’s expenses until you have positive cash flow (Sales)

11. Feasibility and Business Planning
1.) What is the purpose of a business concept?
2.) List the four components of an effective business concept.
3.) Discuss two things a Feasibility Analysis accomplishes.

12. Feasibility and Business Planning
Section 6.2
Your Roadmap to Entrepreneurial Success
Definition 6
A _________ is a document that describes a new business and strategy to launch that business
Business Plan
It shows start-up, growth, and is a complete and detailed picture of the business

13. Feasibility and Business Planning
There are roughly 15parts to a detailed Business Plan
Part 1
Definition 7
____________ is a brief recounting of the key points of the plan
Executive Summary
It is completed last but listed first in the plan?
Why?

14. Feasibility and Business Planning
2.) Management Team Plan
You and your team’s qualifications
3.) Company Description
Outlines the size, scope, and type of business
4.) Product and Service Plan
What is the product or service you are offering?
Do you plan to have spin-offs?

15. Feasibility and Business Planning
Part 5
Definition 8-
A ____________ establishes the scope and purpose of a company and reflects its values and beliefs
Vision Statement

16. Feasibility and Business Planning
Part 6
Definition 9
The _________ expresses the specific aspirations for the company, the major goals for which it will strive
Mission Statement

17. Feasibility and Business Planning
7.) Industry Overview
Research in the industry: Look at companies providing similar, complementary, or supplementary goods and services
8.) Market Analysis- Your research on the Customer Profile
9.) Competitive Analysis- How your business will be superior to the competition. What are your AND their Strengths and Weaknesses?

18. Feasibility and Business Planning
10.) Marketing Plan
How will you make people aware of your product and service?
11.) Operational Plan
What distribution channels will you use?
Direct or Indirect?
Both?

19. Feasibility and Business Planning
12.) Organizational Plan
How will company be structured? SP, Partnership, LLC?
13.) Financial Plan
The financial forecast for the business
14.) Growth Plan
How will the business expand in the future?

20. Feasibility and Business Planning
15.) Contingency Plan
Identify possible risks
Minimize Risks

21. Feasibility and Business Planning
1. Why should you develop a business plan after you know you have a feasible concept? 2. In a business plan, what is the difference between the Market Analysis and the Marketing Plan? 3. Describe the importance of Vision and Mission Statements in identifying the direction and objectives of a business.