What Is Feasibility Analysis
What Is Feasibility Analysis?
•Feasibility Analysis
–The process of determining whether a business idea is viable.
–It is the preliminary evaluation of a business idea, conducted for the purpose of determining whether the idea is worth pursuing.
–Feasibility analysis takes the guesswork (to a certain degree) out of a business launch, and provides an entrepreneur with a more secure notion that a business idea is feasible or viable.
When To Conduct a Feasibility Analysis
•Timing of Feasibility Analysis
–The proper time to conduct a feasibility analysis is early in thinking through the prospects for a new business.
–The thought is to screen ideas before a lot of resources are spent on them.
•Components of a Properly Conducted Feasibility Analysis
–A properly conducted feasibility analysis includes four separate components, as shown in the figure on the next slide.
Product/Service Feasibility Analysis
•Product/Service Feasibility Analysis
–Is an assessment of the overall appeal of the product or service being proposed.
–The idea is that before a prospective firm rushes a product or service into development, it should be confident that the product or service is what its prospective customers want.
–The two components of a product/service feasibility analysis are:
•Concept testing.
•Usability testing.
Preparing a Concept Statement(1 of 3)
•Concept Statement
–Before a company undertakes product/service feasibility analysis, a concept statement should be developed.
–A concept statement is a one page description of a business that is distributed by a startup entrepreneur to people who are asked to provide feedback on the potential of the business idea.
–The feedback will hopefully provide the entrepreneur (1) a sense of the viability of the business idea, and (2) suggestions for how the idea can be strengthened or “tweaked” before proceeding further.
Information to Include
–A description of the product or service being offered.
–The
•Feasibility Analysis
–The process of determining whether a business idea is viable.
–It is the preliminary evaluation of a business idea, conducted for the purpose of determining whether the idea is worth pursuing.
–Feasibility analysis takes the guesswork (to a certain degree) out of a business launch, and provides an entrepreneur with a more secure notion that a business idea is feasible or viable.
When To Conduct a Feasibility Analysis
•Timing of Feasibility Analysis
–The proper time to conduct a feasibility analysis is early in thinking through the prospects for a new business.
–The thought is to screen ideas before a lot of resources are spent on them.
•Components of a Properly Conducted Feasibility Analysis
–A properly conducted feasibility analysis includes four separate components, as shown in the figure on the next slide.
Product/Service Feasibility Analysis
•Product/Service Feasibility Analysis
–Is an assessment of the overall appeal of the product or service being proposed.
–The idea is that before a prospective firm rushes a product or service into development, it should be confident that the product or service is what its prospective customers want.
–The two components of a product/service feasibility analysis are:
•Concept testing.
•Usability testing.
Preparing a Concept Statement(1 of 3)
•Concept Statement
–Before a company undertakes product/service feasibility analysis, a concept statement should be developed.
–A concept statement is a one page description of a business that is distributed by a startup entrepreneur to people who are asked to provide feedback on the potential of the business idea.
–The feedback will hopefully provide the entrepreneur (1) a sense of the viability of the business idea, and (2) suggestions for how the idea can be strengthened or “tweaked” before proceeding further.
Information to Include
–A description of the product or service being offered.
–The