RA

ENTR405 CH3: Feasibility Analysis

Feasibility analysis: is the process of determining if a business idea is viable

  • an assessment of a potential business rather than strictly a product or service idea.

Feasibility Analysis consists of:

  • Primary research: collected by the person or persons completing the analysis.

    • Talking to prospective customers

    • Getting feedback from industry experts

    • Conducting focus groups

    • Administering surveys

  • Secondary research: data that is already collected.

    • Industry studies

    • Census Bureau data

    • Analyst forecasts

    • Information from library and Internet research

The Outline for the approach to feasibility analysis

  • Product\Service Feasibility: assessment of the appeal of the product

    • product\service Desirability

    • product\service Demand

  • Industry\Target market feasibility:

    • Industry Attractiveness

    • Target market Attractiveness

  • Organizational Feasibility Analysis:

    • Management prowess: ability of management team (براعة الإدارة)

    • Resource sufficiency: identify the most important nonfinancial resources (كفاية الموارد)

  • Financial Feasibility Analysis:

    • total start-up cash needed

    • financial performance of similar business

    • overall financial attractiveness of the proposed venture

  • Overall Assessment