inventory system
H
APPENDIX I
BUSINESS FEASIBILITY STUDY OUTLINE
E N T R E P R E N E U R S H I P A N D B U S I N E S S
185
I
ENTREPRENEURSHIP AND BUSINESS INNOVATION
THE ART OF SUCCESSFUL BUSINESS START-UPS AND BUSINESS PLANNING
ALAN THOMPSON
©2005
WHAT IS A FEASIBILITY STUDY
A Business Feasibility Study can be defined as a controlled process for identifying problems and opportunities, determining objectives, describing situations, defining successful outcomes and assessing the range of costs and benefits associated with several alternatives for solving a problem. The Business Feasibility
Study is used to support the decision-making process based on a cost benefit analysis of the actual business or project viability.
The feasibility study is conducted during the deliberation phase of the business development cycle prior to commencement of a formal Business Plan. It is an analytical tool that includes recommendations and limitations, which are utilised to assist the decision-makers when determining if the Business Concept is viable (Drucker 1985; Hoagland & Williamson 2000; Thompson
2003c; Thompson 2003a).
THE IMPORTANCE OF A BUSINESS FEASIBILITY STUDY
It is estimated that only one in fifty business ideas are actually commercially viable. Therefore a Business Feasibility Study is an effective way to safeguard against wastage of further investment or resources (Gofton 1997; Bickerdyke et al. 2000). If a project is seen to be feasible from the results of the study, the next logical step is to proceed with the full Business Plan. The research and information uncovered in the feasibility study will support the business planning stage and reduce the research time. Hence, the cost of the Business Plan will also be reduced. A thorough viability analysis provides an abundance of information that is also necessary for the Business Plan. For example, a good market analysis is necessary in order to determine the business concept's feasibility. This
APPENDIX I
BUSINESS FEASIBILITY STUDY OUTLINE
E N T R E P R E N E U R S H I P A N D B U S I N E S S
185
I
ENTREPRENEURSHIP AND BUSINESS INNOVATION
THE ART OF SUCCESSFUL BUSINESS START-UPS AND BUSINESS PLANNING
ALAN THOMPSON
©2005
WHAT IS A FEASIBILITY STUDY
A Business Feasibility Study can be defined as a controlled process for identifying problems and opportunities, determining objectives, describing situations, defining successful outcomes and assessing the range of costs and benefits associated with several alternatives for solving a problem. The Business Feasibility
Study is used to support the decision-making process based on a cost benefit analysis of the actual business or project viability.
The feasibility study is conducted during the deliberation phase of the business development cycle prior to commencement of a formal Business Plan. It is an analytical tool that includes recommendations and limitations, which are utilised to assist the decision-makers when determining if the Business Concept is viable (Drucker 1985; Hoagland & Williamson 2000; Thompson
2003c; Thompson 2003a).
THE IMPORTANCE OF A BUSINESS FEASIBILITY STUDY
It is estimated that only one in fifty business ideas are actually commercially viable. Therefore a Business Feasibility Study is an effective way to safeguard against wastage of further investment or resources (Gofton 1997; Bickerdyke et al. 2000). If a project is seen to be feasible from the results of the study, the next logical step is to proceed with the full Business Plan. The research and information uncovered in the feasibility study will support the business planning stage and reduce the research time. Hence, the cost of the Business Plan will also be reduced. A thorough viability analysis provides an abundance of information that is also necessary for the Business Plan. For example, a good market analysis is necessary in order to determine the business concept's feasibility. This