Submitted by: Submitted by sugarlove
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Category: Business and Industry
Date Submitted: 01/18/2016 02:38 AM
CHAPTER 3: FEASIBILITY ANALYSIS
* Feasibility analysis is the process of determining if a business idea is viable.
* The most effective businesses emerge from a process that includes:
a) Recognizing a business idea
b) Testing the feasibility of the idea
c) Writing a business plan
d) Launching the business
* A mental transition must be made when completing a feasibility analysis from thinking of a business idea as just an idea to thinking of it as a business.
* A feasibility analysis is an assessment of a potential business rather than strictly a product/service idea.
* It is investigative in nature and is designed to critique the merits of a proposed business.
* Completing a feasibility analysis requires both primary & secondary research.
* Primary research is collected by the person/persons completing the analysis.
* Includes talking to industry experts, obtaining feedback from prospective customers, conducting focus groups, and administering surveys.
* Secondary research probes data that is already collected.
* Includes industry studies, Census Bureau data, analyst forecasts, and other pertinent information gleaned through library and internet research.
* Should be emphasize that while a feasibility analysis tests the merits of a specific data, it allows ample opportunity for the idea to be revised, altered and changed as a result of the feedback that is obtained and the analysis that is conducted.
Four areas of feasibility analysis
Product/service feasibility analysis | * An assessment of the overall appeal of the product/service being proposed. * Although there are many important things to consider when launching a new venture, nothing else matters if the product/service itself doesn’t sell. * Two components: Product/service desirability | * To affirm that the proposed product is desirable & serves a need in the marketplace * Concept test involves showing a preliminary...