A business feasibility study format can be as simple or complex as you desire. Simply, it is an examination of your business model. You are checking that it is possible to make a profit from your intended business. When considering how to write a business feasibility study, it is important to consider three main areas of the business: * market environment - is there potential for your product or service to return a profit? * technical and operational requirements - what equipment or human resources will the business need to have access to, at what cost, in order to return a profit? * financial projections - what are the expected expenses and incomes of the business, including sales and advertising projections? How long will it be until the business breaks even? Market Potential Assessment
A business (or product/service) is assessed as feasible if it can be shown that there is sufficient market demand - that is, that you can show there are enough customers in your geographic/target market who will purchase a sufficient quantity of products/services to estimate that your business will return a profit. A simple method of determining market demand is the 6 Step Market Potential Assessment Tool, shown below. Download this tool from the Feasibility Analysis Tools page >> 1. Are you selling to individuals, households or businesses? 2. What is the population of these customers in your target geographical location? 3. How much, in an average year, do customers spend on your product/service? 4. What are total sales for the region?
5. How much is currently purchased in the region?
6. Is there space in the market for new players?
This list of questions acts an initial 'screen' for your business concept. If at the end of the process you have decided that there is not space in the market (that being, your type of customers in your target location) then you should make a choice; either, target a...