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Conducting a Feasibility Analysis and Designing a Business Model - Coggle…
Conducting a Feasibility Analysis and Designing a Business Model
Feasibility Analysis
Industry and Market Feasibility
Six macro forces which are sociocultural, technological, demographic, economic, political and legal and global.
Product or Service Feasibility
determines the degree to which a product or service idea appeals to potential customers and identifies the resources necessary to produce it.
1. Primary Research
collect data firsthand and analyze it.
2. Secondary Research
gather data that already has been compiled and analyze it.
Financial Feasibility
Estimated earnings: forecasted income statements.
Capital requirements: an estimate of how much start-up capital is required to launch the business.
Entrepreneur/Team Feasibility
Assess entrepreneurial readiness: knowledge, experience, and skills necessary for entrepreneurs to be successful.
Assess whether the business will be able to generate enough profit to support everyone’s income needs.
Porter's Five Forces Model
a useful tool for analyzing an industry's attractiveness
Rivalry among companies in the industry
industry is more attractive when industry is growing fast.
Bargaining power of buyers
industry is more attractive when substitutes are available
Bargaining power of buyers
industry is more attractive when number of buyers is large.
Threat of new entrants
industry is more attractive to entrants when capital requirements to enter are low.
Threat of substitute products or services
industry is more attractive to new entrants when buyers' switching costs are high.
Business Modeling Process
Phase 1: Develop the business model canvas
Phase 2: Test the value proposition with customers
Phase 3: Test the product with prototype or minimal viable product
Phase 4: Pivot business model until ready to expand
Primary Research Techniques
Prototypes
Customer surveys and questionnaires
In-home trials
Internet
Industry databases
New business planning process
Creating a strategic plan
Launching the business
Crafting a business plan
Conducting an idea assessment
Business ideas