Feasibility Analysis Feasibility Analysis Exercise Winter 2022 School of Business 2 1. Market feasibility Question Response and Assess

Feasibility Analysis Exercise

Winter 2022

School of Business

2

1. Market feasibility

Question

Response and Assessment

(Please use your own words and full sentences)

Please formally define/describe your business idea within 50 words.

What is the estimate of market for your business idea? Try to consider the estimates of local/national/near market size. It is because most business ideas will unlikely reach the global audience immediately.

What is the estimate of growth rate in your key markets in the next 3-5 years?

Is there any strong evidence suggesting a need or desire for the product? Please elaborate.

Are there any concepts that are identical or similar to yours? Explain how you check it.

Who are your two main competitors?

What advantages do your idea have over the main competitors?

Is there space in the market where you can start without competing against a significantly larger competitor?

2. Technical feasibility

Question

Response and Assessment

(Please use your own words and full sentences)

What are the key technologies or technical expertise needed in this business?

Can you gain access to these key technologies and technical expertise? For example, do you have them or know where to find them?

Can you find the necessary people to manage and operate this business?

What are the top potential operational risks associated with this idea? Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. List up to three risks.

What are the top potential legal risks associated with this idea? List up to three risks.

3. Financial feasibility

Question

Response and Assessment

(Please use your own words and full sentences)

Can we start the business with a reasonable amount of capital (e.g., $50,000)? Explain how you will allocate the first $50,000.

What would be the estimate of key fixed and variable costs for each of the first 3 years?

What would be the estimate of revenue for each of the first 3 years?

Do we know any friends and family who will be interested in investing in this idea?

4. Overall Assessment (Based on the preliminary analysis checks above, summarize your overall assessment on the feasibility of your business idea)

Question

Takeaway

Score

(1-5, 1 = very infeasible, 5 = very feasible)

Market feasibility: Is it the market real and munificent? Is there enough space for our business? Can we compete meaningfully in the market?

Technical feasibility: Do we have access to the key technologies and expertise to run the business? Can we pull together a group to run the initial business?

Financial feasibility: Can we start with a small amount? Is it worth doing? Can we generate reasonable revenue to cover cost or attract investment?

Sum of three scores and preliminary conclusion

If the total score is 3 – 6: Infeasible. We may avoid this business idea for now.

If the total score is 7 – 11: Moderately feasible. We may try this business idea.

If the total score is 12 – 15: Highly feasible. Let’s go and start this business.

[Enter the sum of the three scores here; the sum should be less than 15]

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