Transcript Business Planning for a New Venture: E (I) ntrepreneurship

Feasibility Analysis Outline
Writing and Presenting a Business Plan
Chapter 2
Feasibility Analysis Outline
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EXECUTIVE SUMMARY
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Do this last
PRODUCT/SERVICE DESCRIPTION
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Purpose of the business
Description and uses
Design and unique features
The primary customer
Spin-offs
Environmental impact
Feasibility Analysis Outline
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MANAGEMENT TEAM
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Qualifications
Gap analysis
Feasibility Analysis Outline
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MARKET ANALYSIS
Industry Description
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Industry Size
Industry status (growing, mature, in decline)
Growth potential
Geographic locations
Trends and entry barriers
Profit potential
Sales patterns and gross margins
Feasibility Analysis Outline
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MARKET ANALYSIS
Target Market
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Primary target markets
Secondary markets
Demographics
Customer needs analysis
Product/Service Differentiation
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Unique features
Potential for innovation
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MARKET ANALYSIS
Competitors
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Direct and indirect
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Market share
Description
Strengths and weaknesses
Emerging
Substitute products
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MARKET ANALYSIS
Competitive Advantage
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Proprietary protection
Other competitive advantages
Feasibility Analysis Outline
Operational Analysis
Technical Description of Product/Service
 Uses, design, prototype
 Issues of obsolescence
Distribution Channels
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Status
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of Development and Related Costs
Current status of development
Tasks to be completed, time and cost to complete
Potential difficulties, resolution
Government approvals
Feasibility Analysis Outline
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Operational Analysis
 Manufacturing or Operating Requirements and
Associated Costs
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Manufacturing cycle
Materials requirements
Inventory requirements (also retail/wholesale business)
Production requirements (also retail/wholesale or
service)
Labor requirements (all businesses)
Maintenance and quality control requirements (all
businesses)
Financial requirements (all businesses)
Feasibility Analysis Outline
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MARKETING PLAN
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Pricing
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Purpose of Marketing Plan
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Advertising & promotion
Media Plan
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Target market
Unique market niche
Business identity
Marketing Tools
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Venture versus competitors
Value chain
Uses and costs of specific marketing tools
Marketing Budget
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Individual costs and total costs as a percentage of sales
Feasibility Analysis Outline
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FINANCIAL PLAN
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Simple Profit and Loss Statement
Drive all financial assumptions from expected costs, not sales
projections.
Try and avoid as many fixed costs as possible. Outsource
Feasibility Analysis Outline
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CONTINGENCY PLAN
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Deviations from the Original Plan and Solutions
DEAL STRUCTURE
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Debt and/or Equity Funding Amounts
Projected Return on Investment