BUSINESS FEASIBILITY STUDY OUTLINE

i. ii. iii. iv. I. II. III. IV. V. Cover Page Acknowledgment Abstract Table of Contents

Introduction Methodology Criteria Nature of the Business Market Environment Competition Marketing and Sales Strategy VI. Production/Operating Requirements Regulations/Environment Issues VII. Financial Projections Capital Requirements and Strategy VIII. Management and Personnel IX. Alternative Courses of Action X. Data Gathering and Interpretation XI. Evaluation XII. Conclusion XIII. Recommendation XIV. Appendices

HARD-BOUND COVER Sample

A Feasibility Study on the Installation of Automated Teller Machine within the Philip Van Engelen, Robert Hoeppener and The College of Architecture and Fine Arts Building

UNIVERSITY OF SAN CARLOS CEBU CITY

October 2011

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INSIDE COVER PAGE Sample

A Feasibility Study on the Installation of Automated Teller Machine within the Philip Van Engelen, Robert Hoeppener and The College of Architecture and Fine Arts Building

Presented to the Department of Computer Science University of San Carlos Talamban Campus, Cebu City

In Partial Fulfillment of the Course Requirement in ICT133 Presentation Skills in Information Technology
By: Student Names

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ACKNOWLEDGMENT In paragraph form, write down the researchers acknowledgments ABSTRACT An abstract is a short summary of your completed research. If done well, it makes the reader want to learn more about your research. These are the basic components of an abstract in any discipline: 1) Motivation/problem statement: Why do we care about the problem? What practical, scientific, theoretical or artistic gap is your research filling? 2) Methods/procedure/approach: What did you actually do to get your results? (e.g. analyzed 3 novels, completed a series of 5 oil paintings, interviewed 17 students) 3) Results/findings/product: As a result of completing the above procedure, what did you learn/invent/create? 4) Conclusion/implications: What are the larger implications of your findings, especially for the problem/gap identified in step 1? The Abstract is a summary of all key sections of the Business Feasibility Study and should work as a separate, stand-alone document. Interested parties will read this section first in conjunction with a glance at the financial section when deciding whether or not they read the rest of the plan. Key points to remember include: Write this document after the content section of Business Feasibility Study is completed Although the Executive Summary is written last, it is presented first The Executive Summary should be no more than one page long TABLE OF CONTENTS Table of contents showing the correct pages

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I. INTRODUCTION
Introduction is the first part of a research paper. Thesis introduction allows the readers to get the general idea of what your research is about. Introduction acquaints the readers with the research paper topic, explaining the basic points of the thesis research and pointing the direction of your research. Introduction has to contain the following information: The research paper topic; The reasons which pushed a student to write his or her research paper exactly on this topic; The research topic preface, or the background information on the research paper topic; The goals you are going to achieve; You should write your research introduction after composing the entire paper. It will allow you to analyze the whole work, and discover the best way to introduce your research to the readers. Try to use simple language within your research introduction. Remember that one of the main tasks of the research introduction is to attract the readers attention to your paper.

II. METHODOLOGY

Write everything down the methods of research used in the project It should be detailed discussion, use simple words It may also include the tasks to complete in order to attain the goals, or the direction of the research development.

III. CRITERIA

Location/Space o In exact area where the proposed project needs to be located, in other words the strategic location Cost o Includes how, when and where the finances be used or spent before, during and after the project is implemented Equipment o Includes the major equipment(s) needed in putting up the project Availability o How convenient is the location of the proposed project to the target market

IV. NATURE OF THE BUSINESS

Product or Service Describe the enterprises, product or service in simple language. Give product mix if the enterprise will initially be focusing on more than one product Describe how the customers would use and buy the product or service. Give enough detail to help the reader judge the effectiveness of your marketing and positioning plans Describe key components or raw materials that will be used in the product, how the enterprise will source these and how available they are Describe plans to upgrade the product or expand product line Describe its amenities and uniqueness from existing competitors

V. MARKET ENVIRONMENT
A. Target Market: Define and describe the target market(s). Distinguish between end users and customers Be clear how end users and customers benefit. How and why would they buy the product or service? How big is the opportunity? What level of actual market demand can be measured versus projected? For business-to-business markets (B2B), include: o What industry is the targeted market in, who are the key players, frequency of product purchase, replacement needs versus expansion, purchasing process o Estimates of market size, initial targeted geographic area, enterprises targeted market share For business-to-consumer markets (B2C), include: o Demographics factors, such as income level, age range, gender, educational levels, ethnicity o Psychographic factors o Relevant behavioral factors such as frequency of product purchase and shopping behavior B. Competition Describe direct and indirect competition (as it pertains to the target market only) For key competitors, give market share, resources, product and market focus, goals, strategies, strengths and weaknesses List all key barriers to entry Describe what is unique about the enterprises product/service compared to the competition. Make sure this is consistent with the unmet need of the target market(s) State how difficult it will be for the competitors to copy the enterprises product/service Describe how competitors most likely react to the enterprises product launch and the enterprises response strategy. Include estimates of the time it might take a competitor to copy your product or service

C. Marketing and sales strategy Lay out the basic marketing and sales strategies Discuss any strategic partnership the enterprise has or is planning to form. Do they provide critical market access or other resources? What are their rights and responsibilities Describe distribution strategy (sell direct to customers through sales force, direct mail, or internet; sell through manufacturers representatives, wholesalers, distributors, or retailers). Provide projected profit margin or mark-up expectations, commissions and other expected compensation (co-op advertising, slotting fees, etc) Describe the pricing strategy and justification. Include expected gross profit margins Describe intended typical payment terms for customers Other issues and their impact e.g. warranties Quantify the marketing budget for at least the first year (ideally three) D. Technology As necessary, provide further technical information about the product or service Describe additional or ongoing research and development needs Keep the description in lay terms and/or explain technical terms enough to be understood by business-savvy but not necessarily technology expert readers

E. Political, Economic, Social and Ecology Factors

VI. PRODUCTION/OPERATING REQUIREMENTS

Describe enough of how and where the enterprise will manufacture, source or create and deliver the final product or service to be able to estimate costs What physical premises are required? Give location, size, age, condition and capacity of planned production and warehouse facilities and number of shifts planned. Give a layout. Will space be owned or leased? Will renovations be required? At what cost? How complex is the manufacturing process? Describe equipment needed and costs If enterprise will outsource production or distribute others materials: Describe supply source. Are sources of supply readily available? Outline the relevant contract terms, manufacturers capacity, minimum order and tooling requirements, reputation, size or financial condition Describe the enterprises plan to protect its proprietary processes and trade secrets and quality control If the enterprise is providing a service: How will the service be designed, delivered, measured and improved? What stakeholders exist, who will be trading partners with the business? What will be the terms of the contract? Are there substitute partners? REGULATIONS/ENVIRONMENTAL ISSUES Outline non-economic forces that might affect the prospects of the firm: o Key government regulations and the enterprises plans for compliance, e.g. Business Permits

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Any environmental problems on property, plans to address the problems and their cost Environmental factors i.e. waste disposal plans Political stability, if applicable Any other regulatory or political issues. This may deal with proposed industry regulatory changes, stable versus unstable environments

VII.

FINANCIAL PROJECTIONS
Include a narrative highlighting key underlying assumptions and the logic governing your projections. Include financial history and likely financing stages including information about funding sources and uses. Provide a page or two of footnotes for each financial spreadsheet attached explaining the assumptions behind each major line item. Some core components of this part of the report are listed below. o o o o o Balance Sheet Projections three years and highlight inflows of capital Income Projections Year 1: Monthly or Quarterly: Year 2 and 3; Annually Cash Flow Projections Year 1: Monthly or Quarterly: Year 2 and 3; Annually Break-Even Analysis when will the firm begin to turn a profit? Cost Benefit Analysis will the business provide a viable return on investment (ROI) for the owner and/or the investor

CAPITAL REQUIREMENT & STRATEGY How much funding will the firm need and when? What projected revenue or assets does the proposed business have to secure the financing? What sources will provide the funding, i.e. investors, lending institutions etc? What ratio of debt to equity financing will occur? When will investors begin to see a return? What is the expected return on investment (ROI)?

VIII. MANAGEMENT AND PERSONNEL

List the proposed key managers, titles, responsibilities, relevant background, experience, skills and costs. Create an organization chart. Sketch personnel requirements: what people will be needed now, in a year, in the long term? What skills and qualifications are required and what financial implications result?

IX. ALTERNATIVE COURSES OF ACTION

CRITICAL RISK FACTORS Describe critical risk faced by enterprise (currently or in the future). Much of these components will arise from the SWOT analysis. Examples include internal characteristics, uniqueness, investment, economic forecasts, change in regulations and technical obsolescence, etc. Be sure to describe how you will mitigate each risk.

X. DATA GATHERING AND INTERPRETATION

Interpretation and/or presentation of the data gathered in any form applicable, e.g. tabular, graph, charts, etc. If the interpretation is based from a survey, questions will be broken down, with corresponding presentation and interpretation

XI. EVALUATION

The general assessment or evaluation of the data gathered This part would show whether or not the project is viable or feasible

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CONCLUSION

Write down the conclusion

XIII. RECOMMENDATION

Recommendations from the feasibility study regarding the viability of putting the business idea into practice should be honest, short and direct. When making the findings or recommendations arising from the Business Feasibility Study discussing the viability of the proposed business venture in terms of: o Market viability o Technical viability o Business model viability o Management model viability o Economic and financial model viability o Exit strategy viability A significant component of the findings should be related to the likelihood of success, projected return on investment and how any identified risk should be mitigated. The purpose of the feasibility study is to consolidate an argument based on factual evidence and analysis to help justify your decision in relation to the core question of whether the business venture in questions is actually viable.

XIV. APPENDICES

Progress Report and/or Periodic Report Gantt Chart and/or PERT Chart Original survey questionnaires

REFERENCES Example: Bangs, D (2000). The Australian Business Planning Guide. Warriewood, Woodslane Pty Ltd.

SOURCES OF HELP To write a feasibility study, you need to go to others for help and information. Look at recent history to demonstrate the best approach or business model. Suggested sources: o Business enterprise center o Accountants o Lawyers contracts, leases, legal representations o Banks o Business advisers or consultants o Trade associations o Potential suppliers o Sources of information o Competitors o Libraries and online resources