Some additional context for the Feasibility Analysis
Feasibility Analysis:
The purpose of this analysis is whether or not to add more or less resources in a business model.
The goal is to complete a feasibility analysis to see if the business works or not. To begin, questions you should be asking based on your business model are:
What are you doing?
Can you explain your business to me on an elevator, in easy to understand language? (Elevator Ride)
Who are you going to sell it to? (Market Analysis)
Who are your customers? Describe your customer in as much rich detail as you can.
Who is your target market?
Who else sells to this market and how does the business work? (Industry and Competitor Analysis)
Who else sells to your customers? Could they be an ally?
Describe any companies or products that are similar to yours (Direct Competitors)
Describe any companies that substitutes products or services that you serve (Indirect Competitors)
What are your unique competitive advantages?
Who can you partner up with that complement each other?
Who supplies to the market? (Supply Chain)
Threat of new entrants/Competitiveness in your market.
Are there barriers to entry
How hard is it to get out of the business?
Are your costs too high to get out?
Is your business idea feasible?
If you want to get high-tech equipment is it possible to get?
Is it too hard/expensive to use the technology?
Can you make money? (Financial Analysis)
What is my margin? (Can we make enough to cover our costs?)
What is my pricing strategy?
Will the company be profitable? How are you going to define profit?
What are your key cash flow risks? How can you decrease those risks?
What are your key profit risks? Seasonality (Think about lobsters)
Should you launch this business why or why not?
2. The report:
The report has eight parts:
Executive summary (write this last). This should be a page or so
Introduction explain the business, include a sentence at the end if this is a feasible business or not
Business concept should talk about the business, what are you selling
Industry overview- describes which industry that your business fits into. Understand your competitors, suppliers, etc.
Target Market Description (might be more than one)
Detailed competitor analysis. Why would someone choose your business over someone else's?
Financial Analysis (what's your profit, expenses etc.)
Recommendations (does the business model work?)