Sample contents of a completed Feasibility Study

1. 2. Title Page Table of Contents

3. Executive Summary This is the summarised version of the feasibility study. It must adequately cover the major points of the feasibility study on one or two pages. . !ntroduction Justification Study objective Scope of study

". Product#Service $escription Describe your product/service here %. T&e Promoter ame !ddress Telephone number/"mail address #ualifications $or% history and bac%ground in brief Status of promoter & whether company' or individual (ore detailed information on qualifications and career history can be included in the appendices.

'. (ar)et *ssessment In this section you provide an assessment of the mar%et demand for your product or service. The analysis reveals who will buy how much of your product and what they are willing to pay for it. It consists of identifying your mar%ets' determining mar%et factors that create demand for your product' and forecasting the potential demand for your product. It should identify opportunities or threats facing the proposed business. Describe the mar%et research technique that you used to find answers to the questions below. The techniques can include telephone surveys' personal interviews' sales figures on e)isting products' statistical and published information in your target area' informed opinion of %nowledgeable people and test mar%eting. Questions to answer in the market assessment $hat is the si*e of the mar%et+ $hat is the sales volume+ $hat is the production volume+

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$ho is buying the product or service i.e. who is your target mar%et+ ,ow many customers are there+ $ho are they+ $here are they currently buying the product or service+ !re the customers satisfied+ ,ow is your mar%et segmented currently+ $hat are the major trends affecting your mar%et+ $hat is the growth rate of the mar%et+ $hat would the buyers li%e to see changed about the products they are now buying+ $hat are the mar%et trends for your product+ ,ow is your target group changing+ !re other groups starting to use your product+ ,ow do factors such as age' gender' family income' brand loyalty' lifestyle' etc. affect your product+ ,ow do customers view warranties and pac%aging of the products+ $hat is the price structure on your product+ ,ow has the price changed in the last year+ -ast five years+ $hat determines price on your product & quality' si*e' demand' tourist trade+ $hat promotional methods are most effective in reaching your target customers+ $hat is your conclusion about your e)pected mar%et share+ !re there any legal' environmental or economic factors' which may impact on the business+ Competition *nalysis $ho are your major competitors+ $hat are the major strengths of each+ $hat are the major wea%nesses of each+ $hat are their production capabilities+ !re you familiar with the following factors concerning your competitors. /rice structure+ /roduct lines 0quality' breadth' width1+ -ocation+ /romotional activities+ Sources of supply+ Image from a consumer2s viewpoint+ Do you %now of any new competitors+ Do you %now of any competitor2s plans for e)pansion+ ,ave any firms of your type gone out of business lately+ If so' why+ Do you %now the sales and mar%et share of each competitor+ Do you %now whether the sales and mar%et share of each competitor are increasing' decreasing' or stable+ Do you %now the profit levels of each competitor+ !re your competitors2 profits increasing' decreasing' or stable+

3an you compete with your competition+

,. (ar)eting Strategy ote. Depending on the outcome of the feasibility study your business plan will include a detailed mar%eting strategy. 4or the feasibility study a briefer outline of your strategy will suffice. ,ow will the mar%et be accessed+ $hat distribution methods will you use+ $hat is the competitive advantage of your product or the benefits of your product in relation to the competition+ $hat will attract customers to your product+ ,ow is your product differentiated from the competition+ $hat pricing methods will you probably use+ $hat promotional methods will you use 0i.e tradeshows' advertising' etc.1+ 5utline any commitments you have received from customers already. 5utline e)port potential if any. 1-. Tec&nical or Production *nalysis This portion should be based on verifiable data and contain sufficient information and analysis so that a determination may be made on the technical feasibility of achieving the levels of income or production that are projected in the financial statements. Depending on your particular business idea it may include the following considerations. Determine the suitability of the production site including site environmental impact analysis 0provided by architect' engineer or person with the necessary e)pertise to ma%e the determination1. Does the site have the desired characteristics and available utilities and transportation facilities' etc.+ $hat are the technology needs for the proposed business+ $hat are the equipment/resource requirements+ $hen and where can the technology/equipment be obtained+ $hat does the technology or equipment cost+ $hat are the production costs 0to be included in the finance section1. $ill the technology achieve the intended production levels+ $hat will the production process be+ $hat are the product storage requirements etc.+ Is there availability of local labour+ !re there any legal or environmental factors or other developments which may impact on the business+ 11. Prototype or sample product If you need to develop a sample product or prototype as part of the feasibility a description should be given here.

12. (anagement Capability Describe the requirements for the management positions and responsibilities for those personnel. Describe the s%ills/e)pertise you will need to bring to the business. Describe e)isting capabilities within the business 0related to qualifications and e)perience of promoter1. 13. Financial *nalysis Include preliminary financial projections 0with a clear understanding of assumptions1 and an estimation of all variable and fi)ed 0overhead1 costs will be necessary to estimate the profitability of the proposed venture. The accuracy of your revenue projections and costs will be dependent on the reliability of the mar%eting predictions and production information. Important considerations to determine profitability include. !re you sure that you have considered all costs' variable and fi)ed' that should be allocated to the new enterprise+ Do you have enough information to prepare projected statements for the ne)t three or more years i.e. cash flow forecast' profit and loss' balance sheet+ ,ave you done a 6sensitivity7 analysis to predict the impact that possible variations in costs and revenues will have on profitability+ $hen will the enterprise reach the brea%8even point+ $hen will the business become profitable+ Is there enough profit to allow for growth of the business+ 1 . .e/uired Financing 9equired funding to enter this mar%et and feasibility of raising capital 0if necessary1. 1". Economic !mpact Show the potential economic impact of the proposed venture e.g. job creation' salaries of employees' sourcing local suppliers' etc. -imits and constraints. 1%. Conclusions and .ecommendations ! suggestion as to the feasibility of the project. 1'. *ppendices Include any supporting documentation including references here.