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Feasibility Analysis - Coggle Diagram
Feasibility Analysis
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Financial Feasibility Analysis
a preliminary financial assessment is
usually sufficient
additional rigor at this point is not require because the specifics of the business will inevitable evolve making it impractical to spend a lot of time early on preparing detailed financial forecasts
Steady and rapid growth in sales during the first five to seven years in a clearly defined market niche
High percentage of recurring revenue—meaning that once a firm wins a client, the client will
provide recurring sources of revenue
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Availability of an exit opportunity (such as an acquisition or an initial public offering) for investors to convert equity into cash
Feasibility Analysis
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(1) recognizing a business idea
(2) testing the feasibility of the idea
(3) writing a business plan
(4) launching the business
Product/service feasibility analysis
assessment of the overall appeal
of the product or service being proposed
product/service desirability
affirm that the proposed product or service is desirable and serves a need in the marketplace
concept test
showing a preliminary description of a product/ service idea
concept statement, to industry experts and
prospective customers to solicit their feedback
A description of the product or service.
details the features of
the product or service; many include a sketch of it as well.
The intended target market.
lists the consumers or businesses who are expected to buy the product or service.
The benefits of the product or service
benefits of the product or service & include an account of how the product /service add value & solve problem
A description of how the product or service will be positioned relative to competitors
A company’s position describes how its product or service is
situated relative to its rivals.
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product/
service demand
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Library, Internet, and Gumshoe Research
demand for a product or service idea is by conducting
library, Internet, and gumshoe research
Industry/target market feasibility
an assessment of the overall appeal of the
industry and the target market for the product or service being proposed
Industry Attractiveness
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Are not highly dependent on the historically low price of a key raw material, like gasoline or flour, to remain profitable
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Organizational feasibility analysis
conducted to determine whether a proposed
business has sufficient management expertise, organizational competence & resources to successfully launch its business
Management Prowess
A proposed business should evaluate the prowess,
or ability, of its initial management team, whether it
is a sole entrepreneur or a larger group
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A new-venture team
the group of founders, key employees and advisers that either
manage or help manage a new business in its start-up years
Resource Sufficiency
determine whether the proposed venture has or is capable of obtaining sufficient resources to move forward
nonfinancial resources
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Lab space, manufacturing space, or
space to launch a service business
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