The purpose of a feasibility analysis is to assess the viability of a business. In summary, in Chapter 1 you collected information concerning your business idea and wrote your first draft of the business description. Chapter 2 explained why data collection important and necessary before writing a business plan and finally assisted in outlining methods for gathering vital information. In this chapter you will use this data to analyze whether or not the business will work, meaning can you sell sufficient product to produce a constant revenue stream? In order to answer this question, you will develop a marketing plan, operational strategy, schedule, and initial financial calculations. 1. FEASIBILITY DEFINED
What are the characteristics that indicate an energy business is feasible? When land, fuel, technology, team, customers and permits are available and when putting these ingredients together makes financial, social and environmental sense, then a business is feasible. Determining the feasibility of a business doesn’t guarantee that it will be funded or implemented – too many other things outside of your control can go wrong -- but it does set the stage for presenting the business to reasonable people for technical and financial participation. The goal of a feasibility analysis is for you to demonstrate that the pieces of the business can be put together well enough to present it to others.
2. OPPORTUNITY ANALYSIS
In chapter 1 you defined your potential customers and gathered information about them. This included details of their location, income, ability to pay, needs, and usage. The goal of this section is to prove that there are sufficient customers that are willing and able to buy your product. In other words, customers believe your product will best serve their needs and they can afford to purchase it. In order to prove this, it is necessary for you to analyze the data you collected and then draw reasonable conclusions. This will be done in...