the business plan: feasibility study for entrepreneurs
DESCRIPTION
What is feasibility study? What are the elements of a feasibility study? How to perform a feasibility study? #WikiCourses http://wikicourses.wikispaces.com/Topic09+Feasibility+StudyTRANSCRIPT
![Page 1: The Business Plan: Feasibility Study for Entrepreneurs](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554c6af4b4c90575798b4afe/html5/thumbnails/1.jpg)
The Business Plan: FeasibilityMohammad Tawfik
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The Business Plan:Feasibility
![Page 2: The Business Plan: Feasibility Study for Entrepreneurs](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554c6af4b4c90575798b4afe/html5/thumbnails/2.jpg)
The Business Plan: FeasibilityMohammad Tawfik
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Product Feasibility
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The Business Plan: FeasibilityMohammad Tawfik
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Can the product be delivered profitably in an
ongoing manner?
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The Business Plan: FeasibilityMohammad Tawfik
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Is there sufficient customers?
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The Business Plan: FeasibilityMohammad Tawfik
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Research
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The Business Plan: FeasibilityMohammad Tawfik
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Primary research – collect data firsthand and analyze it
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The Business Plan: FeasibilityMohammad Tawfik
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Customer surveys and questionnaires
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The Business Plan: FeasibilityMohammad Tawfik
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Focus groups
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The Business Plan: FeasibilityMohammad Tawfik
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Secondary research – gather data that already has been compiled and analyze it
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The Business Plan: FeasibilityMohammad Tawfik
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Prototypes
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The Business Plan: FeasibilityMohammad Tawfik
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In-Home trials
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The Business Plan: FeasibilityMohammad Tawfik
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![Page 13: The Business Plan: Feasibility Study for Entrepreneurs](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554c6af4b4c90575798b4afe/html5/thumbnails/13.jpg)
The Business Plan: FeasibilityMohammad Tawfik
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Market Feasibility
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The Business Plan: FeasibilityMohammad Tawfik
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How attractive is the opportunity?
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The Business Plan: FeasibilityMohammad Tawfik
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Is there any strategic niche?
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The Business Plan: FeasibilityMohammad Tawfik
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Porter’s Five Forces Analysis
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The Business Plan: FeasibilityMohammad Tawfik
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Porter’s Five Forces Analysis
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The Business Plan: FeasibilityMohammad Tawfik
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Threats of new entrants
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Advantages of economies of scale are absent
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Capital requirements to enter are low
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Cost advantages are not related to company size
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Buyers are not loyal to existing brands
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The Business Plan: FeasibilityMohammad Tawfik
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![Page 24: The Business Plan: Feasibility Study for Entrepreneurs](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554c6af4b4c90575798b4afe/html5/thumbnails/24.jpg)
The Business Plan: FeasibilityMohammad Tawfik
#WikiCourseshttp://WikiCourses.WikiSpaces.com
![Page 25: The Business Plan: Feasibility Study for Entrepreneurs](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554c6af4b4c90575798b4afe/html5/thumbnails/25.jpg)
The Business Plan: FeasibilityMohammad Tawfik
#WikiCourseshttp://WikiCourses.WikiSpaces.com
Industry is more attractive when:● Government does not restrict the entrance of
new companies
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The Business Plan: FeasibilityMohammad Tawfik
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Threats of substitute products
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Quality substitutes are not readily available
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Prices of substitute products are not
significantly lower than those of the industry’s products
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Buyers’ switching costs are high
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The Business Plan: FeasibilityMohammad Tawfik
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![Page 31: The Business Plan: Feasibility Study for Entrepreneurs](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554c6af4b4c90575798b4afe/html5/thumbnails/31.jpg)
The Business Plan: FeasibilityMohammad Tawfik
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Bargaining power of customers
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Customers’ switching costs are high
![Page 33: The Business Plan: Feasibility Study for Entrepreneurs](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554c6af4b4c90575798b4afe/html5/thumbnails/33.jpg)
The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Number of buyers is large
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Customers want differentiated products
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Customers find it difficult to collect information
for comparing suppliers
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The Business Plan: FeasibilityMohammad Tawfik
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Bargaining power of suppliers
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Many suppliers sell a commodity product
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Substitutes are available
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Switching costs are low
![Page 40: The Business Plan: Feasibility Study for Entrepreneurs](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554c6af4b4c90575798b4afe/html5/thumbnails/40.jpg)
The Business Plan: FeasibilityMohammad Tawfik
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Existing competition
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Number of competitors is large, or, at the other
extreme, quite small
![Page 42: The Business Plan: Feasibility Study for Entrepreneurs](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554c6af4b4c90575798b4afe/html5/thumbnails/42.jpg)
The Business Plan: FeasibilityMohammad Tawfik
#WikiCourseshttp://WikiCourses.WikiSpaces.com
Industry is more attractive when:● Number of competitors is large, or, at the other
extreme, quite small
![Page 43: The Business Plan: Feasibility Study for Entrepreneurs](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554c6af4b4c90575798b4afe/html5/thumbnails/43.jpg)
The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Competitors are not similar in size or capacity
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Industry is growing fast
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The Business Plan: FeasibilityMohammad Tawfik
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Industry is more attractive when:● Opportunity to sell a differentiated product or
service exists
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The Business Plan: FeasibilityMohammad Tawfik
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Financial Feasibility
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The Business Plan: FeasibilityMohammad Tawfik
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Capital needed to enter the market
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The Business Plan: FeasibilityMohammad Tawfik
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Expected revenue
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The Business Plan: FeasibilityMohammad Tawfik
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Expected costs
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The Business Plan: FeasibilityMohammad Tawfik
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Assignment!
● Perform a feasibility study for your project!● Use a focus group of at least other 4 of your
colleagues to provides customer research● Create an electronic survey to collect
responses from at least 50 of your colleagues regarding your business
● Use educated speculations for the creation of the rest of your study.
![Page 51: The Business Plan: Feasibility Study for Entrepreneurs](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554c6af4b4c90575798b4afe/html5/thumbnails/51.jpg)
The Business Plan: FeasibilityMohammad Tawfik
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References
● Entrepreneurship and Small Business Management, 1/e, Steve Mariotti and Caroline Glackin, 2012, Pearson Education
● Effective Small Business Management, 10/e, Norman M. Scarborough, Prentice Hall, 2011