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Writing A Feasibility Study PDF
Writing A Feasibility Study PDF
A controlled process identifying problems and opportunities, determining objectives, describing situations,
defining successful outcomes and assessing the range of costs and benefits associated with several alternatives
for solving a problem
It is used to support the decision-making process based on a cost benefit analysis of the actual business or
project viability
Market viability
Technical viability
Business model viability
Management model viability
Economic and financial model viability
Exit strategy viability
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IV.
COVER SHEET
EXECUTIVE SUMMARY
TABLE OF CONTENTS
Introduction
Product or service
Technology
Market environment
Competition
Industry
Business model
Marketing and sales strategy
Production/operating requirements
Management and personnel requirements
Intellectual property
Regulations/environmental issues
Critical risk factors
FINANCIAL PROJECTION
Balance Sheet Projections
Income Statement Projections
Cash Flow Projections
Break Even Analysis
Capital Requirements and Strategy
Recommendation and Findings
Conclusion
EXECUTIVE SUMMARY - a summary of all key sections of the study and should work as a separate, standalone document
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Key points
Write after content of feasibility study is completed
Written last, but presented first
No more than one page long
Key points
For description, use simple language
Description of how customers would use and buy product/service
Describe key components or materials used
Described plans to test the product to ensure it works
Describe plans to upgrade the product or expand product line
Key points
As necessary, provide further technical information about product/service
Describe additional ongoing research and development needs
Use understandable technical terms
Key points
Target market
Define and describe the target market (s)
Key points
Describe direct and indirect competition
For key competitors give market share, resources, product and market focus, goals strategies,
strengths and weaknesses
List all key entry barriers
Describe how unique is your product in comparison with competitors
Ste how difficult it is to copy your product
State how your competitors will react to your launch
Key points
Clear definition and description of the industry
Describe demand and supply factors and trends
Describe the largest forces that drive the market
Key points
Describe the proposed enterprises business model
Describe the model in enough detail to support financial projections presented later
Key points
Lay out basic marketing and sales strategy
Discuss any strategic partnership in place or planned
Describe distribution strategy
Describe pricing strategy
Outline other issues e.g. after sales service, warranties etc.
Quantify the marketing budget
Key points
Describe how and where will be the product produced
What physical premises are required?
Will space be owned or leased? Need of renovations?
How complex is the manufacturing process?
Do you need outsourcing?
Key points
List proposed key managers, titles, responsibilities, relevant background, experience, skills, costs
Sketch personnel requirements
Key points
Briefly describe patents, copyrights and trademarks obtained and in process
Key points
Outline non-economic forces that might affect your business case:
Government regulations
Environmental problems
Political stability
Any other regulatory or political issues
Key points
Use tools as:
SWOT
Porters Five Forces
PEST Analysis
Financial Projections
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A significant component of findings should relate to the likelihood of success, projected returns on
investment and how any identified risks should be mitigated.