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Composition of Feasibility Study - Coggle Diagram
Composition of Feasibility Study
Market
Product/Services
anything that can be offered to the market for attention, acquisition, use or consumption
must be developed to meet the needs and wants of target market
Customers
target market for services or products
target market can be individuals, households, local, international organizations and governments organizations
Market share
portion or share of the market that the business can penetrate or control.
higher percentage of market can make a business as market leader
Market size
expected demand from potential target market
factors used in making market size calculation :
market growth rate
competitors' sales
sales method
market penetration in terms of sales coverage area
population of target markrt
estimation of purchase by target market
Competitors
Other business that provide similar, substitute or alternative products/services to same target market
it did bring direct impact to the business
business need to identify their competitors strength, and weakness in every aspects.
Technical
Materials
many aspects need to be consider before importing materials into business
Technical manpower
identify technical workers required in producing the products or services with appropriate skills and qualifications
Technology & equipment
business has to identify type of technology used foe business venture
types of equipment required also important
Location
place where the proposed business or project are likely to set-up
due to online business, these has become less relevant as no physical location are needed to conduct a business.
Organisational
Management team
group of individuals responsible to manage the business and propel business to success.
this team need to have passion, determination, ability and expertise to implement and manage proposed business
Compensation & other incentives
monetory and non-monetary incentives paid to management team and employess.
has various forms and business needs to determine which one they will chose to reward their employees.
Organisational structure
identifies each job position, function, and where it report to within the organization
always illustrated using organizational chart
Supporting services
assistance and services provided by governments or private sector to assist businesses
Financial
Working capital
money that must be available to a business in order for the business to keep running
Other expenses
costs and expenses that are non-recurring or one-time cost
advisable for business to estimate start-up cost and working capital and entrepreneurs should overestimates not underestimates when cost is involved
Current assets
business assets that has life span of less than a year
the business is expected to transfer assets into cash or use the assets after a year
eg: stocks, inventories (raw materials)
Financial sources
with start-up capital, entrepreneurs need to find sources of fund to finance the start-up capital
Start-up capital
the first step in financial feasibility where the amount of start-up capital required by the entrepreneur to set up and run the business
start-up capital is total cash or asset to start the business
Profitability analysis
determine whether the proposed venture will generate sufficient profit to make the proposed venture feasible
assist entrepreneurs and investors in their decision making and acts as guidelines
pro-forma financial statements:
cash flow statement
income statement
balance sheet