Entrepreneurship
Entrepreneurship:
Successfully Launching
New Ventures, 2/e
Bruce R. Barringer
R. Duane Ireland
Chapter 3
©2008 Prentice Hall
3-1
Chapter Objectives
(1 of 3)
1. Explain what a feasibility analysis is and why it’s important. 2. Discuss the proper time to complete a feasibility analysis when developing a business venture.
3. Describe the purpose of a product/service feasibility analysis and the two primary issues that a proposed business should consider in this area.
4. Identify three primary purposes of concept testing.
5. Explain a concept statement and its contents.
©2008 Prentice Hall
3-2
Chapter Objectives
(2 of 3)
6. Define the term usability testing and explain why it’s important. 7. Describe the purpose of industry/market feasibility analysis and the three primary issues to consider in this area.
8. Explain the difference between primary research and secondary research.
9. Describe the purpose of organizational feasibility analysis and list the two primary issues to consider in this area.
©2008 Prentice Hall
3-3
Chapter Objectives
(3 of 3)
10. Explain the importance of financial feasibility analysis and list the most critical issues to consider in this area.
©2008 Prentice Hall
3-4
What Is Feasibility Analysis?
• Feasibility Analysis
– Feasibility analysis is 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.
©2008 Prentice Hall
3-5
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
Successfully Launching
New Ventures, 2/e
Bruce R. Barringer
R. Duane Ireland
Chapter 3
©2008 Prentice Hall
3-1
Chapter Objectives
(1 of 3)
1. Explain what a feasibility analysis is and why it’s important. 2. Discuss the proper time to complete a feasibility analysis when developing a business venture.
3. Describe the purpose of a product/service feasibility analysis and the two primary issues that a proposed business should consider in this area.
4. Identify three primary purposes of concept testing.
5. Explain a concept statement and its contents.
©2008 Prentice Hall
3-2
Chapter Objectives
(2 of 3)
6. Define the term usability testing and explain why it’s important. 7. Describe the purpose of industry/market feasibility analysis and the three primary issues to consider in this area.
8. Explain the difference between primary research and secondary research.
9. Describe the purpose of organizational feasibility analysis and list the two primary issues to consider in this area.
©2008 Prentice Hall
3-3
Chapter Objectives
(3 of 3)
10. Explain the importance of financial feasibility analysis and list the most critical issues to consider in this area.
©2008 Prentice Hall
3-4
What Is Feasibility Analysis?
• Feasibility Analysis
– Feasibility analysis is 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.
©2008 Prentice Hall
3-5
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