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The_Feasibility_Study_and_You_A_Dynamic_Duo
| The Feasibility Study and You: A Dynamic Duo
You have a great new business idea. You've asked your friends
and family for feedback and they gave you thumbs up approval.
You've asked your existing customers if they'd have use for such
a product or service and they've indicated they would. Lastly,
you've done some soul searching and you know you're truly
interested in this concept and have the commitment to stick with
it over the long haul.
So far so good. Now it's time to do a feasibility study.
I can hear the resistance already.
"A feasibility study, you say? Isn't it something that CEO's of
Fortune 500 companies fiddle with? What does it mean to the
owner of a small or home business like me?"
Consider: A feasibility study is research that gives you
preliminary information regarding your business idea's potential
to succeed in the marketplace.
It can mean the difference between success and failure. There
are plenty of business ideas. Some of them will work. Some will
not. We know that every year, scores of new businesses flounder
and fail, despite the owner's hard work and enthusiasm. Sadly to
say, one major reason for failure is the entrepreneur's
willingness to commit to a favored idea without researching the
feasibility of the concept. The demons battled here are internal
ones: Loving an idea doesn't mean it's going to be a success.
Smart entrepreneurs know the importance of doing initial
research before investing time and money in starting a new
business, or in developing a full-scale business plan.
This gathering of information is the feasibility study. It can
be a complex, formal document used for attracting investors, or
a simple page of notes to oneself. Regardless of which format
you need, the feasibility study should address the following
categories in detail:
a. The Product or Service Describe the product or service. What
is it? How and where will it be manufactured or produced? By
whom? How will it be delivered to customers? In what way is it
unique?
b. The Owners and Management Who are the members of your
management team? What are their strengths in this particular
venture? How will those strengths benefit the business concept?
What necessary skills and strengths are missing from your
present team? How will you compensate for those skills? Will you
hire? Contract out? Take training courses? Other?
c. The Market Who is your market? What is the demographic? Is
the market strong? Is it growing? What challenges are facing the
market? How will you reach the market? What are the costs
involved in reaching this market?
d. The Competition Who is the direct competition? Who is the
indirect competition? How does your product compare to theirs?
What is your unique selling point? Can your competitors readily
duplicate your product or service? How are they likely to react
when you enter the market?
(Note: Direct competition refers to companies providing the same
or similar service. If you are offering yoga classes, for
example, your direct competition will be other individuals or
businesses that are offering similar classes within your
geographic area. Indirect competition refers to other ways in
which your potential customers can obtain a similar product or
service. Yoga books and videotapes, yoga television shows, etc.,
as well as businesses offering classes such as Reiki, Shiatsu,
Pilates, etc., are your indirect competitors.)
e. Budget What will it cost you to start your business? What
will it cost to run it? Where will the money come from?
Satisfied with the results of the study? Excellent. Now take
that enthusiasm and commitment and set about creating your brand
new business! You and your feasibility study are a dynamic duo!
About the author:
How to Write Business Plans, Business Proposals, JV Contracts,
Human Resource Package, More! No-cost ebook "Beginners Guide to
Ecommerce". Business Writing by Nightcats Multimedia Productions
http://www.nightcats.com
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