Kandit Kerdwiriyaskul (Kan)

Full Feasibility Analysis

From Preparing Effective Business Plans by Bruce R. Barringer

Note: All fields can be expanded to provide additional space to respond to the questions. A
copy of this template, along with each of the assessment tools, is also available in
PDF format at the authors Web site at www.prenhall.com/entrepreneurship.

Introduction
A. Brewesso
B. Kandit Kerdwiriyaskul
C. My business is about a coffee brewer that could be carried with the users. It is
made for a person who has busy life during the morning that they have to rush to
prepare their coffee. The size is convenient to the customers because we maximize
it not to be more than 17inches. Our company will sell fast, instant, and convenient
coffee brewing machine to rushed work man, which can be carried by the users in
any places. The machines are sold in the shopping malls and the convenient store,
and the size is same as a normal laptop in order to be carried easily. All
requirements are just coffee beans and electricity (which it can be charged
throughout the night).

Part 1: Product/Service Feasibility

Issues Addressed in This Part
A. Product/service desirability

B. Product/service demand

Assessment Tools
Concept Statement Test

Write a concept statement for your product/service idea. Show the concept statement
to 5 to 10 people. Select people who will give you informed and candid feedback.
Attached a blank sheet to the concept statement, and ask the people who read the
statement to (1) tell you three things they like about your product/service idea, (2)
provide three suggestions for making it better, (3) tell you whether they think the
product or service idea is feasible (or will be successful), and (4) share any additional
comments or suggestions.
Summarize the information you obtain from the concept statement into the following
three categories:

* Strengths of the product or service ideathings people who evaluated your

product or service concept said they liked about the idea
* Suggestions for strengthening the ideasuggestions made by people for
strengthening or improving the idea

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Kandit Kerdwiriyaskul (Kan)

* Overall feasibility of the product or service conceptreport the number of

people who thing the idea is feasible, the number of people who think it isnt
feasible, and any additional comments that were made
* Other comments and suggestions

Buying Intentions Survey

Distribute the concept statement to 15 to 30 prospective customers (do not include
any of the people who completed the concept statement test) with the following
buying intentions survey attached. Ask each participant to read the concept statement
and complete the buying intentions survey. Record the number of people who
participated in the survey and the results of the survey here.
Along with the raw data recorded here, report the percentage of the total number of
people you surveyed that said they would probably buy or definitely would buy your
product or service if offered. This percentage is the most important figure in gauging
potential customer interest.

One caveat is that people who say that they intend to purchase a product do
not always follow through, so the numbers resulting from this activity are almost
always optimistic. Still, the numbers provide you with a preliminary indication of
how your most likely customers will respond to your potential product or service
offering.

How likely would you be to buy the product or service described above?
____4__ Definitely would buy
____4__ Probably would buy
____5__ Might or might not buy
____0_ Probably would not buy
____2_ Definitely would not buy
Additional questions may be added to the buying intentions survey.

Conclusion (expand fields and report findings, in discussion form, for each area)
A. Product/service desirability
Because people are rushing these days, our products try to help reducing the time
for them to prepare coffee. This way our customers will have a hot and fresh
brewed coffee that they can carry away with them. Other companies might sell
more quality coffee machine, but we have a brewer that can be carried in order to
support their life. We also provide a machine in public places where people can
make their own coffee, and the use is same as vending machine. This is for the
person who are not interested in buying.
B. Product/service demand
We have examined 15 people who have a rushing life in the morning.

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Kandit Kerdwiriyaskul (Kan)

Approximately a half of them (53.3%) at 8 people have a probability to buy my

product while 5 people (33.3%) are deciding. Others are definitely not buying.
C. Product/service feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. Suggestions for improving product/service feasibility.
- Add more types of drink to the machine to make it more convenient

Part 2: Industry/Market Feasibility

Issues Addressed in This Part
A. Industry attractiveness
B. Target market attractiveness
C. Timeliness of entry into the target market

Assessment Tools
Industry Attractiveness
To the extent possible, assess the industry at the five-digit NAICS code level your
potential business will be entering. Use a broader industry category (less NCICS
digits) if appropriate (http://www.census.gov/epcd/www/naicstab.htm).
Assess the attractiveness of the industry the potential business plans to enter on each
of the following dimensions.

Industry Attractiveness Assessment Tool

(used to assess the broad industry, rather than the specific target market, you plan
to enter)
Low Potential Moderate Potential High Potential
1. Number of competitors Many Few None
2. Age of industry Old Middle aged Young
3. Growth rate of industry Little or no Moderate growth Strong growth
growth
4. Average net income for Low Medium High
firms in the industry
5. Degree of industry Concentrated Neither Fragmented
concentration concentrated nor
fragmented

6. Stage of industry life Maturity Growth phase Emergence

cycle phase or phase
decline phase
7. Importance of industrys Ambivalent Would like to Must have
products and/or services have
to customers
8. Extent to which business Low Medium High
and environmental
trends are moving in
favor of the industry

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Kandit Kerdwiriyaskul (Kan)

9. Number of exciting new Low Medium High

product and services
emerging from the
industry
10. Long-term prospects Weak Neutral Strong

Target Market Attractiveness

Identify the portion or specific market within your broader industry that you plan to
target.
Assess the attractiveness of the target market on each of the following dimensions.

Target Market Attractiveness Assessment Tool

(used to assess the specific target market, rather than the broader industry, you plan
to enter)
Low Potential Moderate Potential High Potential
1. Number of competitors Many Few None
in target market
2. Growth rate of firms in Little to no Slow growth Rapid growth
the target market growth
3. Average net income for Low Medium High
firms in the target
market

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Kandit Kerdwiriyaskul (Kan)

Low Potential Moderate Potential High Potential

4. Methods for generating Unclear Somewhat clear Clear
revenue in the industry
5. Ability to create barriers Unable to May or may not be Can create
to entry for potential create able to create
competitors
6. Degree to which Satisfied Neither satisfied or Unsatisfied
customers feel satisfied by dissatisfied
the current offerings in the
target market
7. Potential to employ low Low Moderate High
cost guerrilla and/or buzz
marketing techniques to
promote the firms product
or services
8. Excitement surrounding Low Medium High
new product/service
offerings in the target
market

Market Timeliness
Determine the extent to which the window of opportunity for the proposed business
is open or closed based on the following criteria.
Determine the timeliness of entering a specific target market based on other criteria.

Market Timeliness Assessment Tool

Low Potential Moderate Potential High Potential
1. Buying mood of Customers are Customers are in a Customers are
customers not in a buying moderate buying in an aggressive
mood mood buying mood
2. Momentum of the market Stable to losing Slowly gaining Rapidly gaining
momentum momentum momentum
3. Need for a new firm in the Low Moderate High
market with your offerings
or geographic location
4. Extent to which business Low Medium High
and environmental trends
are moving in favor of the
target market
5. Recent or planned Large firms Rumors that large No larger firms
entrance of large firms entering the firms may be entered the
into the market market entering the market market or are
rumored to be
entering the
market

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Kandit Kerdwiriyaskul (Kan)

Conclusion (expand fields and report findings, in discussion form, for each area)
A. Industry attractiveness
Because my company is working on a coffee products, so there surely are lots of
competitors that open coffee shop. However, our company is new to the market,
and that is why we can catch customers focus to our attractiveness. The growth
rate of company is moderate, but we are excited and aggressively expand our ideas
in developing our products. We are still in a growth phase, and we also would like
to have special services to our customers.
B. Target market attractiveness
In overall view, our company have many competitors, but when we mainly focus
on our target customers/markets, we have got a few competitors. Our target
customer is people who rush in the morning and have no time to prepare coffee.
Our competitors are not that big. We are able to create barriers to other competitors
because our product has never been launched before, and it is original.
Furthermore, we are able to promote our products using Guerilla method.
However, our product does not involve much environmental campaigns. But we
have many interesting ideas that we are going to use them to develop our products.
C. Market timeliness
Although it is obvious that many people are rushing, many people still do not want
to afford to carry our product. That is why it slowly gains momentum in the
market. Both need of new firms in geographic location and environmental trends
are in moderate potential. Our staff is a person who alert to establish new ideas,
but they still require experience in the market.
D. Industry/market feasibility (circle the correct response)
Not Feasible Unsure Feasible
E. Suggestions for improving industry/market feasibility.
Find the target customers that is in aggressive buying moods and improve market
timeliness. Also create barrier to competitors.

Part 3: Organizational Feasibility

Issues Addressed in This Part
A. Management prowess
B. Resource sufficiency

Assessment Tools
Management Prowess
Use the following table to candidly and objectively rate the prowess of the founder
or group of founders who will be starting the proposed venture.

Management Prowess Assessment Tool

Low Potential Moderate Potential High Potential
1. Passion for the business Low Moderate High
idea
2. Relevant industry None Moderate Extensive
experience
3. Prior entrepreneurial None Moderate Extensive

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Kandit Kerdwiriyaskul (Kan)

experience
4. Depth of professional Weak Moderate Strong
and social networks
5. Creativity among Low Moderate High
management team
members
6. Experience and expertise None Moderate High
in cash flow
management
7. College graduate No college Some college Graduated or
education education but not are currently
currently in college in college

Resource Sufficiency
The focus in this section is on nonfinancial resources. Use the following table to rate
your resource sufficiency in each category.
The list of resources is not meant to be exhaustive. A list of the 6 to 12 most critical
nonfinancial resources for your proposed business is sufficient.

An explanation of the rating system used in the first portion of the table is as follows:
1 Available
2 Likely to be available: will probably be available and will be within my budget
3 Unlikely to be available: will probably be hard to find or gain access to, and
may exceed my budget
4 Unavailable
5 NA: not applicable for my business

Resource Sufficiency Assessment Tool

Ratings Resource Sufficiency
1 2 3 4 5 Office space
1 2 3 4 5 Lab space, manufacturing space, or space to launch a
service business
1 2 3 4 5 Contract manufacturers or outsource providers
1 2 3 4 5 Key management employees (now and in the future)
1 2 3 4 5 Key support personnel (now and in the future)
1 2 3 4 5 Key equipment needed to operate the business
(computers, machinery, delivery vehicles)
1 2 3 4 5 Ability to obtain intellectual property protection on key

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Kandit Kerdwiriyaskul (Kan)

aspects of the business

1 2 3 4 5 Support of local and state government if applicable for
business launch
1 2 3 4 5 Ability to form favorable business partnerships
Ratings: Strong, Neutral,
or Weak
Neutral Proximity to similar firms (for the purpose of knowledge
sharing)
Strong Proximity to suppliers
Strong Proximity to customers
Weak Proximity to a major research university (if applicable)

Conclusion (expand fields and report findings, in discussion form, for each area)
A. Management prowess
Our passion is quite high because we are a young industry, but our experience is in
a moderate rate comparing to other competitors. However, we replace that by our
knowledge because we have professions in our products. Furthermore, the
creativity in team management is high to, and we consider that a strength f our
prowess.
B. Resource sufficiency
It is not easy to find a perfect place to build our office. That is why our office
space is not quite in a high rating, but we have a convenient space enough to
launch our service. Our key management and employees are in a high rate
including key support personnel. We are fine with the equipment, and we are able
to obtain intellectual property of the business. Lastly, we face a little problem in
making business partnerships.
C. Organizational feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. Suggestions for improving organizational feasibility
Find more experience among employees.
Part 4: Financial Feasibility
Issues Addressed in This Part
A. Total startup cash needed
B. Financial performance of similar businesses
C. Overall financial attractiveness of the proposed venture

Assessment Tools

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Kandit Kerdwiriyaskul (Kan)

Total Start-Up Cash Needed

The startup costs (which include capital investments and operating expenses) should
include all the costs necessary for the business to make its first sale. New firms
typically need money for a host of purposes, including the hiring of personnel, office
or manufacturing space, equipment, training, research and development, marketing,
and the initial product rollout.
At the feasibility analysis stage, it is not necessary for the number to be exact.
However, the number should be fairly accurate to give an entrepreneur an idea of the
dollar amount that will be needed to launch the firm. After the approximate dollar
amount is known, the entrepreneur should determine specifically where the money
will come from to cover the startup costs.

The total startup cash needed can be estimate using the following table.

Total Startup Cash Needed (to Make First Sale)

Capital Investments Amount

Property 1,500,000

Furniture and fixtures 48,000

Computer equipment X2 30,000

Other equipment Machines 500,000

Vehicles X2 50,000

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Kandit Kerdwiriyaskul (Kan)

Operating Expenses Amount

Legal, accounting, and professional services 0

Advertising and promotions 20,000

Deposits for utilities 20,000

Licenses and permits 5,000

Prepaid insurance 7,000

Lease payments 0

Salary and wages 60,000

Payroll taxes 7%

Travel 0

Signs 0

Tools and supplies 100,000

Starting inventory 300,000

Cash (working capital) 200,000

Other expense 1 0

Other expense 2 0

Total Startup Cash Needed =

Comparison of the Financial Performance of Proposed Venture to Similar Firms

Use the following tables to compare the proposed new venture to similar firms in
regard to annual sales (Year 1 and Year 2) and profitability (Year 1 and Year 2).

Comparison of the Financial Performance of Proposed Venture to Similar Firms

Assessment Tool

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Kandit Kerdwiriyaskul (Kan)

Annual Sales

Estimate of Proposed Ventures Explanation of How the Estimate

Annual SalesYear 1 Was Computed
Estimate of Year 1 Sales __2,160,000________ 3,000Baht per machine.
2machines/1day=6,000Baht * 365 =
Summary: How proposed annual sales, on 2160000Baht.
average, compares to similar firms (circle one)

Below Average Average Above Average

Estimate of Year 2 Sales _____2304000_____ 3,200Baht per machine.
2machines/1day=6,400Baht * 365 =
Summary: How proposed annual sales, on 2304000Baht.
average, compares to similar firms (circle one)

Below Average Average Above Average

Net Income

Estimate of Proposed Ventures Explanation of How the Estimate

Net IncomeYear 1 was Computed
Estimate of Year 1 Net Income
___1080000_______ 2,160,000 (3000*30*12)

Summary: How proposed net income, on

average, compares to similar firms (circle one)

Below Average Average Above Average

Estimate of Year 2 Net Income
_____1152000_____ 2,304,000 (3200*30*12)

Summary: How proposed net income, on

average, compares to similar firms (circle one)

Below Average Average Above Average

Overall Financial Attractiveness of the Proposed Venture

The following factors are important in regard to the overall financial attractiveness of
the proposed business.
Assess the strength of each factor in the following table.

Overall Financial Attractiveness of Proposed Venture Assessment Tool

Low Potential Moderate Potential High Potential

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Kandit Kerdwiriyaskul (Kan)

1. Steady and rapid growth in Unlikely Moderately likely Highly likely

sales during the first one to
three years in a clearly
defined target market
2. High percentage of Low Moderate Strong
recurring incomemeaning
that once you win a client,
the client will provide
recurring sources of
revenue
3. Ability to forecast income Weak Moderate Strong
and expenses with a
reasonable degree of
certainty
4. Likelihood that internally Unlikely Moderately likely Highly likely
generated funds will be
available within two years
to finance growth
5. Availability of exit Unlikely to be May be available Likely to be
opportunity for investor if unavailable available
applicable

Conclusion (report finding for each area)

A. Total startup cash needed
-Land 1,500,000
-Furniture 48,000
-Computer30,000
-Vehicles 5,000
-Advertising and promotion 20,000
-Utilities20,000
-License 5,000
-Salary 60,000
-Taxes 7%
-Supplies 100,000
-Inventory 300,000
-Capital 200,000
B. Financial performance of similar businesses
We are moderately growing our sales. We are able to cure our income, and also
forecast it too. In terms of investor in our stake, we are considering to provide the
opportunity to exit if applicable.
C. Financial feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. Suggestions for improving financial feasibility
Make sure we make our firms more stabilized.
Overall Feasibility: Summary and Conclusion
Overall Feasibility of the Suggestions for Improving

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Kandit Kerdwiriyaskul (Kan)

Business Idea Based on the Feasibility

Each Part
Product/Market Feasibility Not feasible Including more types of
Unsure drink on my products
Feasible
Industry/Market Feasibility Not feasible Find the target customers
Unsure that is in aggressive buying
Feasible moods and improve market
timeliness. Also create
barrier to competitors

Organizational Feasibility Not feasible Find more experience

Unsure among employees.
Feasible
Financial Feasibility Not feasible Make sure we make our
Unsure firms more stabilized.
Feasible
Overall Assessment Not feasible
Unsure
Feasible

Conclusionbriefly summarize your justification for your overall assessment.

First of all, our company starts with a pleased percentage of customer who are willing to
buy our products. In terms of market feasibility, we excitedly and aggressively wish to
expand our company, but our staffs/employees still require more experience. We believe
in our prowess because we have an ability in creativity. We are in a fine condition with
pour resource sufficiency. Lastly, financial feasibility, because our companies require
office and industry, therefore, we have to consider our financial activities, and that costs
large amount of money.

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