1. Feasibility Analysis Outline
Writing and Presenting a Business Plan
Chapter 2

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

3. Feasibility Analysis Outline
MANAGEMENT TEAM
Qualifications
Gap analysis

4. 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

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

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

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

8. 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

9. 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)

10. 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

11. 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

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