A Guide Presentation for Business Feasibility Writing

Carl Mark B. Miniano, Ph.D.

What is a Feasibility Study?• It is defined as controlled process for

identifying problems and opportunities, determining objectives , describing situations, defining successful outcomes, and assessing the range of cost and benefits associated with several alternatives for solving problems. (Thompson, 2003)

• It is used to support a business decision process, based on cost benefit analysis of the actual business or project viability.

• A feasibility study looks at the viability of an idea with an emphasis on identifying potential problems and attempts to answer one main question:

• Will the idea work and should you proceed with it?

A comprehensive business feasibility study contains detailed information about your :

• business structure, • your products and services, • the market, • logistics of how you will actually deliver a

product or service, • the resources you need to make the business

run efficiently, • as well as other information about the

business.

• Feasibility studies address things like where and how the business will operate.

• They provide in-depth details about the business to determine if and how it can succeed, and serve as a valuable tool for developing a winning business plan.

Why Are Feasibility Studies so Important?By Lahle Wolfe, About.com Guide

The information you gather and present in your feasibility study will help you:

• List in detail all the things you need to make the business work;

• Identify logistical and other business-related problems and solutions;

• Develop marketing strategies to convince a bank or investor that your business is worth considering as an investment; and

• Serve as a solid foundation for developing your business plan.

• Even if you have a great business idea you still have to find a cost-effective way to market and sell your products and services.

• This is especially important for store-front retail businesses where location could make or break your business.

• For example, most commercial space leases place restrictions on businesses that can have a dramatic impact on income.

• A lease may limit business hours/days, parking spaces, restrict the product or service you can offer, and in some cases, even limit the number of customers a business can receive each day.

The Components of a Feasibility Study

• Market Feasibility: Includes a description of the industry, current market, anticipated future market potential, competition, sales projections, potential buyers, etc.

• Technical Feasibility: Details how you will deliver a product or service (i.e., materials, labor, transportation, where your business will be located, technology needed, etc.).

• Financial Feasibility: Projects how much start-up capital is needed, sources of capital, returns on investment, etc.

• Management/ Organizational Feasibility: The product or services to be offered and how they will be delivered, Organizational Set-up andStructure.

Feasibility Content OutlineBy Don Hofstrand, and Mary Holz-Clause,

•I. Description of the Project• Identification and exploration of business scenarios.• Identify alternative scenarios or business models of

what the project will entail, how it will be organized, and how it will generate profits. These may come from the idea assessment or market assessment that you may have already completed.

• Eliminate scenarios that don’t make sense.• Flesh-out the scenario(s) that appear to have potential

for further exploration.

• Define the project and alternative scenarios• Describe the type and quality of product(s) or

service(s) to be marketed.• Outline the general business model (i.e. how

the business will make money).• Include the technical processes including size,

location, kind of inputs, etc.• Specify the time horizon from the time the

project is initiated until it is up and running at capacity.

• Relationship to the surrounding geographical area.

• Outline the economic and social impact on local communities.

• Describe the environmental impact on the surrounding area.

• II. Market Feasibility• This can be based on a market assessment that you may

have already completed.• Industry description• Describe the size and scope of the industry, market and/or

market segment(s).• Estimate the future direction of the industry, market and/or

market segment(s).• Describe the nature of the industry, market and/or market

segment(s). Is it stable or going through rapid change and restructuring?

• Identify the life-cycle of the industry, market and/or market segment(s). Is it emerging, growing, mature, declining?

• Industry competitiveness• Describe the industry concentration. Are there just a few large

producers or many small producers?• Describe the major competitors?  Will you compete directly

against them?• Analyze the barriers to entry of new competitors into the

market or industry. Can new competitive enter easily?• Analyze the concentration and competitiveness of input

suppliers and product/service buyers.• Describe the price competitiveness of your product/service.

• Market potential• Identify whether the product be sold into a commodity

market or a differentiated product/service market.• Identify the demand and usage trends of the market or

market segment in which the product or service will participate.

• Examine the potential for emerging, niche or segmented market opportunities.

• Explore the opportunity and potential for a branded product.

• Assess market usage and your potential share of the market or market segment.

• Access to market outlets• Identify the potential buyers of the

product/service and the associated marketing costs.

• Investigate the product/service distribution system and the costs involved.

• Sales projection• Estimate sales or usage.• Carefully identify and assess the

accuracy of the underlying assumptions in the sales projection.

• Project sales under various assumptions (i.e. selling prices, services provided, etc.).

• III. Technical Feasibility• Facility needs.• Estimate the size and type of production facilities.• Investigate the need for related buildings, equipment,

rolling-stock, etc.• Suitability of production technology• Investigate and compare technology providers.• Determine reliability and competitiveness of technology

(proven or unproven, state-of-the-art, etc.).• Identify limitations or constraints of the technology.

• Availability and suitability of site• Investigate access to:• raw materials• transportation• labor• production inputs (electricity, natural gas, water, etc.)• Investigate potential emissions problems.• Analyze other environmental impacts.• Identify regulatory requirements.• Explore economic development incentives.

•Raw Materials• Estimate the amount of raw materials needed.• Investigate the current and future availability and

access to raw materials.• Assess the quality and cost of raw materials.• Other inputs• Investigate the availability of labor including wage rates,

skill level, etc.• Assess the potential to access and attract qualified

management personnel.

• III. Financial/Economic Feasibility

• Estimate the total capital requirements• Assess the “seed capital” needs of the business project during

the investigation process and start-up, and how these needs will be met.

• Estimate capital requirements for facilities, equipment and inventories.

• Estimate working capital needs.• Estimate start-up capital needs until revenues are realized at

full capacity.• Estimate contingency capital needs due to construction

delays, technology malfunction, market access delays, etc.• Estimate other capital needs.

• Estimate equity and credit needs• Estimate equity needs.• Identify alternative equity sources and capital availability -

family, producers, local investors, angle investors, venture capitalists, etc.

• Estimate credit needs.• Identify and assess alternative credit sources - banks,

government (i.e. direct loans or loan guarantees), grants and local and state economic development incentives.

• Budget expected costs and returns of various alternatives• Estimate the expected revenue, costs, profit margin and

expected net profit.• Estimate the sales or usage needed to break-even.• Estimate the returns under various production, price and sales

levels. This may involve identifying “best case”, “typical”, and “worst case” scenarios or more sophisticated analysis like a Monte Carlo simulation.

• Assess the reliability of the underlying assumptions of the analysis (prices, production, efficiencies, market access, market penetration, etc.)

• Benchmark against industry averages and/or competitors (cost, margin, profits, ROI, etc.).

• Identify limitations or constraints of the economic analysis.

• Calculate expected cash flows during the start-up period and when the business reaches capacity.

• Prepare pro forma income statement, balance sheet, and other statements of when the business is fully operating.

•IV. Organizational/Managerial Feasibility• Business structure• Identify the proposed legal structure of the business.• Outline the staffing and governance structure of the

business along with lines of authority and decision making structure.

• Identify any potential joint venture partners, alliances or other important stakeholders.

• Identify the availability of skilled and experienced business managers.

• Identify the availability of consultants and service providers with the skills needed to realize the project, including legal, accounting, industry experts, etc.

• Business founders• Character matters - are the people involved of

outstanding character?• Do the founders have the “fire in the belly” required to

take the project to completion?• Do the founders have the skills and ability to complete

the project?• What key individuals will lead the project?• Is there a reward system for the founders? Is it based

on business performance?• Have the founders organized other successful

businesses?

I. What is a Market Feasibility Study?By Lahle Wolfe, About.com Guide

• All feasibility studies should look at how things work, if they will work, and identify potential problems.

• Feasibility studies are done on ideas, campaigns, products, processes, and entire businesses.

• Feasibility studies assess something and consider both pros and cons.

• They analyze potential business scenarios. A Marketing Plan maps out specific ideas, strategies, and campaigns based on feasibility study investigations, that are intended to be implemented.

What Should be Included in a Market Feasibility Study?

A market feasibility study include:• Description of the Industry• Current Market Analysis• Competition• Anticipated Future Market Potential• Potential Buyers and Sources of

Revenues• Sales Projections

How do we write an Industry Description?

• Give a brief one- to two-paragraph description of the industry your business is categorized 

Analyzing Your Current Market

• This section of a market feasibility study describes the current market for your product or service.

• If you are offering something so unique that there are few market statistics, you can either use related industry information, or even conduct your own independent study.

• Several ways to conduct your own research for new ideas include:

• polling Internet forums,• questionnaires addressed to

targeted consumer groups or the general population, or even

• customer surveys.

• Any "proof" you have that there is a demand (or market) for your product or services will help you sell your idea.

• This is particularly important if you are marketing something unique, or within a very small, specialized market.

• You need to show that your ideas is novel because you have found a niche and not because there is no existing market for the idea.

Tips on How to Research Local Competition in Business

• If you are planning to serve only a local market, start by identifying every competitor within a fifty (50) mile radius.

• The fastest way to do this is using a telephone book or online business locator.

• List each competitor by location and distance from you, and from each other. You should closely examine all competing businesses that are within fifteen miles of your location.

• Consider their locations, business hours, and how long they have been in business.

• These things can help you determine how hard it will be to establish a similar business in the same geographic area.

• You should also make note of any similar businesses in your area that have recently gone out of business.

• There may be a reason such as poor location, high taxes or operating restrictions, or there may be not enough demand for the product or service in that area to sustain a business.

• Researching local competitor information can tell you two things: What works and what has not worked.

How to Calculate Sales Projections

• Sales projections can be a challenge for any new business owner because there is little, or no track record to support how fast you will grow, or what products or services will sell best.

• Sales projections should factor in how much time and money will be invested into the business, and the markets you will be targeting.

• For this reason, it is important that you write market feasibility study first.

• Your market study will help you decide where to sell your product of services, and what products and services are most likely to generate the most revenue.

How to Identify Potential Customers, Clients, and Contract Sources

• This component of your small business market feasibility study should be descriptive.

• Your potential customers, clients, and contract sources should include the following:

• A list of current customers, clients, and contracts and the potential for new or renewed contracts.

• Any sales leads that may generate new customers or clients.

• A list of government contracting agencies with a brief description of what type of contracts they solicit, and how they pertain to your industry.

• A list of market types you currently, or intend to target such as seniors citizens, working mothers, organizations, specialty retailers, etc.

• Depending upon the nature of your business, it may not be possible to associate specific amounts of revenue with a particular market, but you can at least try to estimate the percentage of total revenue expected from each source.

II. What is a Technical Feasibility Study?

• The Technical Feasibility Study assesses the details of how you will deliver a product or service (i.e., materials, labor, transportation, where your business will be located, technology needed, etc.).

• Think of the technical feasibility study as the logistical or tactical plan of how your business will produce, store, deliver, and track its products or services.

• A technical feasibility study is an excellent tool for trouble-shooting and long-term planning. In some regards it serves as a flow chart of how your products and services evolve and move through your business to physically reach your market.

The Technical Feasibility Study Must Support Your Financial Information

• Do not make the mistake of trying to entice investors with your staggering growth projections and potential returns on their investment that only includes income (revenue) to the business.

• With any increase in revenue there is always an increase in expenses. Expenses for technical requirements (i.e., materials and labor) should be noted in the technical feasibility study.

• You should also not strictly rely on feasibility study conclusions to impress an investor.

• An experienced investor or lending institution will read your entire report and come to their own conclusions.

• Therefore, it is critical that the technical and financial data in your study reconcile.

• If other parts of your feasibility study shows growth, you will also have to project labor and other costs and the technical ability to support that growth.

• The technical component serves as the written explanation of financial data because if offers you a place to include detailed information about why an expense has been projected high or low, or why it is even necessary.

• It demonstrates to potential investors and lenders (and in some cases, potential clients) that you have thought about the long-term needs your business will have as it grows.

Preparing an Outline for Writing Your Technical Feasibility Study

• The order that you present technical information is not as important as making sure you have all the components to show how you can run your business.

• You do not have to include specific financial information in the technical portion of your feasibility study, but all information in this component must support your financial data represented elsewhere.

• Basic things that most businesses need to include in their technical feasibility study are:

• Materials• Labor• Transportation or Shipping• Physical Location• Technology

Calculating Material Requirements

• In this section you list the materials you need to produce a product or service, and where you will get those materials.

• Include information such as if volume discounts will be available as your business grows, or

• if you ever plan to manufacture your own parts at some point in time.

Things to include in your list of materials:

• Parts needed to produce a product,

• Supplies (glue, nails, etc.), and• Other materials that are involved in

producing or manufacturing your product.

• You do not need to include actual financial data in this portion of the study but financial data supporting your narrative assessment should be included in a separate spreadsheet as an attachment.

Calculating Labor Requirements

• You cannot run a business, offer services, or manufacturer products for free.

• Even if you start your business with you as your only employee, at some point, if you plan to grow you will need to add to your labor pool.

• In most cases, labor will be one of your biggest small business expenses.

• In this section you will list the number and types of employees needed to run your business now, and that may be employed in the future as your business grows. 

You can break labor into categories if necessary:

• Senior Level Management• Office and Clerical Support• Production or Distribution• Professional Staff (i.e., lawyers,

accountants, engineers, marketing)• Fulfillment (i.e., mail room, shipping

department)

• If you plan to outsource (hire another company to do a job for you) order fulfillment, fundraising, or other aspects of your company’s business be sure to list what functions will be outsourced and to where.

Transportation and Shipping Requirements

• If you need to ship items from one place to another, how will you transport these items? Small items can be shipped via local carriers, but heavy or bulk items may need to be transported via a freight or trucking company.

• If you are shipping perishable items, you will need special overnight handling.

• You may also need special permits to ship certain items, and nonprofits organizations should consider applying for discounted postal rates.

• These are all things that affect the technical, or “how” of moving your goods from one place to another.

• if you offer services, how will trainers, educators, consultants, sales personnel get to customers and clients?

• if you offer a product that is governed by law (such as medications or prescription medical supplies), do you need a licensed distributor or pharmacy to ship on your behalf?

In the Transportation Feasibility component, list things that will affect how you get your goods or services to other businesses or individuals, including:

• The methods of transportation and shipping services that will be needed to get your product or services to a customer;

• Special handling or other unique arrangements required to transport your product;

• Any special permits that will be required, including postal rate discounts; and

• Cars (company- or privately-owned) and other vehicles needed to conduct your business.

Physical Location of Your Business

• Where you run your business will have an effect on your success. If you are starting out in a home-based office, project whether or not, and when, you might need any of the following:

• A “Brick and Mortar” Office (office space outside your home)

• Warehouse Facilities• Your Own Factory• Your Own Trucking Facility• Retail Storefront• Any other purchased or rented facilities needed to

conduct your business.

• In the Physical Location Feasibility component, you should also discuss the pros and cons of where these facilities will be located.

• Should they be in one central location, or across other areas?

• Do you need to have special parking considerations for customers or trucks?

• Do you need to be near other facilities such as an airport, commerce center, or shopping mall?

Technology Requirements to Run Your Business

Every business needs at least some kind of technology to operate. The Technology component includes discussions about, and a list of the following:

• Telephone Answering Systems• Computer Hardware and Software• Inventory Management• Cash Registers, Credit Card Collection, Check

Processing• Special Devices to Accommodate the Disabled• Teleconferencing Facilities and Equipment• Cell Phones, PDA’s, or Other Devices Needed to

Conduct Business• Alarm or Camera Systems• Manufacturing Equipment

Summary of the Technical Feasibility Study

• The order in which you present your technical requirements is not as important as making sure that you include all the technical requirements of your business from production to customer receipt.

• This information will help investors know more about the operations of your business.

• Having a great idea for a product or business is not enough; you have to show how you can make money from the idea.

• The technical feasibility study addresses the physical and logistical mechanics of if, and how, you will be able to get something into product, and back out the door to customers.

III. What is a Financial Feasibility Study?

• A financial feasibility study is an assessment of the financial aspects of something. If this case, for starting and running a business.

• It considers many things including start-up capital, expenses, revenues, and investor income and disbursements.

• Other portions of a complete feasibility study will also contribute data to your basic financial study.

Purpose of a Financial Feasibility Study

• A financial feasibility study projects how much start-up capital is needed, sources of capital, returns on investment, and other financial considerations.

• It looks at how much cash is needed, where it will come from, and how it will be spent.

• A financial feasibility study can focus on one particular project or area, or on a group of projects (such as advertising campaigns).

• However, for the purpose of establishing a business or attracting investors, you should include at least three key things in your comprehensive financial feasibility study:

• Start-Up Capital Requirements,• Start-Up Capital Sources, and• Potential Returns for Investors.

Start-Up Capital Requirements

• Start-up capital is simply how much cash you need to start your business and keep it running until it is self-sustaining.

• You should include enough capital funds (cash, or access to cash) to run the business for one to two years.

Finding Start-Up Capital Funding Sources

• There are many ways to raise capital for your business, but no matter what route you take,

• investors are more likely to invest,• banks are more likely to approve loans,

and • large corporations are more likely to

give you contracts, if you have personally invested into the business yourself.

• When you make a list of funding resources, be sure to include anything that you can contribute to the business, including free labor.

• If you are starting a nonprofit organization, your donated professional time may even be tax deductible for you.

• This rundown of where to look for the start up money you need and the most popular sources of business start up money will help.

• 1) Your own pockets.• This may be daunting at first glance, but it’s the most

popular source of business start up money. Don’t have a start up money nest egg?

• Many people get the business start up money they need by mortgaging or remortgaging their homes, or selling property or possessions – even those who do succeed in getting a start up business loan.

• Lending institutions and investors usually expect the person starting a business to make a personal financial commitment.

• 2) Family and friends.• The second most popular source of

business start up money.• Family and friends are often willing to

provide a business start up loan or sometimes even an outright gift.

• After all, they’re likely to be already “pre-sold” on the value of your business idea to some degree, as your family and friends believe in you.

• 3) A line of credit.• While not recommended as a sole source of

business start up money, a line of credit is essential for the start up phase.

• No matter how careful and detailed you’ve been in preparing your business plan, there are always unexpected expenses and expenses that you’ve underestimated.

• Before you start a business, you should already have prepared the way to access this source of business start up money by having established a relationship with your local bank manager and by ensuring that your credit rating is in good shape.

• 4) A start up business loan from a bank.• I’m using the term “bank” to refer to a

business start up loan from a traditional lending institution (such as banks and Credit Unions).

• It’s actually easier than ever to get a business loan, as more people than ever have been successfully starting small businesses and the big banks have more interest in small businesses than they used to.

• 5) A start up business loan from a business-related or government sponsored organization.

• There are many organizations whose purpose is to promote economic development or provide assistance to help particular types of people succeed in business.

• Often (but not always) this assistance includes financial support, such as start up business loans. 

• 6) Participating in a government-sponsored business start up program.

• If you qualify, this is the best way to start a business.

• 7) Finding investors.• Angel investors, venture capitalists,

or private lenders all may be excellent sources of business start up money for your new business.

• While it’s certainly more difficult in most cases to attract investors to a start up rather than to an established venture, it’s not impossible if you have the right business idea at the right time backed by an impressive business plan.

• 8) Government grant programs.• While this is often touted as a great source

of business start up money, it’s not, because most start ups simply don’t qualify as you'll see .

• While there are government grants available, finding one that can provide start up money for your new business will be an enterprise in itself (which is probably why there are so many companies out there providing grant-finding services).

Potential Returns for Investors Feasibility Study

• Investors can be friends, family members, professional associates, client, partners, share holders, or investment institutions.

• Any business or individual willing to give you cash can be a potential investor.

• Investors give you money with the understanding that they will receive “returns” on their investment, that is, in addition to the amount that is invested they will get a percentage of profits.

• In order to entice investors you need to show how your business will make profits, when it will begin to make profits, how much profit it will make, and what investors will gain from their investment.

• The investment return section should offer both a description of how investors will be involved and discuss different variables that will affect the profitability of your business, offering more than one scenario.

How Should I Pay Back Investors?

• How investors will be paid will vary according to individual investment offers.

• Read every offer over very carefully – not all investors may be right for your business.

• The investment section of your financial feasibility study should not make specific or binding offers to investors.

• Do not state investors will be paid specific amounts by certain dates. Instead, list general practices for how investments return will be distributed, assuming different business scenarios.

• For example, you might state that investors will be paid X amount of peso or X% on their investment at the end of any business quarter where profits exceed a certain threshold.

• Project total revenue, deduct business expenses, and then from the remaining amount, decide what percentage will be distributed to investors.

• You should never promise 100% of the remaining amount to investors.

• You need to keep cash on hand to continue operating your business, to grow your business, and to build reserves.

• Most investment returns are typically distributed on a quarterly, bi-annual, or annual basis.

• Consider how the various distribution cycles could affect your business’ cash flow during the first two years of operation.

• In other words, do not just run one set of numbers, examine each type of distribution and support why you think the option you choose is the best one.

7 Tips on How to Choose a Business Partner

• 1. Find a Partner That Shares Your Values, Entrepreneurial Spirit, and Vision

• Of all the things to look for in a partner this is probably the most important.

• You will need to be able to communicate effectively with your partner to make decisions, set goals, and drive the business forward.

• If you partner with someone that is reluctant, combative, or unable to consider your viewpoint it will be harder to be successful.

• 2. Find a Partner That Can Bring Skills and Experience to The Business

• A good business partner should have skills that support and compliment your own.

• No single person is a master of all things business. If you have great interpersonal skills but poor business finance skills, consider a partner who understands business accounting.

• The more skills you and your partner bring to the business together the easier it will be to start, plan, grow, and run your business.

• 3. Look For a Partner Without A Lot of Personal Baggage

• If your partner has serious challenges in his/her personal life it may carry over into the business.

• It is nice to be willing to give someone a chance, but running a small business takes focus, time, and tremendous energy.

• If your partner is dealing with one personal crisis after another you may find yourself carrying the weight of the business.

• 4. Find a Partner That Can Offer Resources and Credibility to Your Business

• It is great to have a business partner that has financial resources, but there are other contributions a partner can bring to the business that can be just as valuable

• A partner with a strong business network, industry connections, client list, or certain credentials and expertise can also increase the value of your business and improve your chances for achieving long-term success.

• 5. Choose a Partner That Practices Good Personal and Business Ethics

• Only enter into partnerships with someone you can trust. Look for someone who values honesty and practices good personal and business ethics.

• A poorly chosen business partner may end up stealing from the company, taking your ideas or clients to start their own business, or breaking laws that could get your business into legal trouble.

• 6. Choose a Partner That is Financially Stable• Whether or not your partner contributes financially to

the business is less important than if your potential partner is in dire financial straits.

• Someone in the middle of a financial crisis may not be the best choice to go into business with for a variety of reasons. Money, asset, and time management skills are critical for small business entrepreneurs and someone who has grossly mismanaged their personal or business finances may not have the skills or discipline to make a business partnership work. Worst case scenario, they may even look for ways to steal from your business to solve personal financial problems.

• 7. Respect: A Necessary Element to Forming a Successful Partnership

• You should never partner with someone that you do not respect.

• The main purpose in forming a partnership is to achieve success as a team.

• You may not value the opinion and efforts of someone you do not respect at least on a professional level.

• You also want to partner with someone that will show you respect as a partner, business professional, and as the founder of your business.

IV. Organizational/Management Feasibility Study:

• To define the legal and corporate structure of the business. An Organizational Feasibility Study may also include professional background information about the founders and principals of the business and what skills they can contribute to the business.

• Your organizational feasibility study should include:

• Description of Your Business Structure

• Description of Your Organizational Structure

• Internal and External Principles and Practices of the Business

• Professional Skills and Resumes

Description of Your Business Structure

• This section contains a narrative description of the legal requirements for establishing your business and why you feel this is the right structure for your business.

• Discuss the pros and cons of different business structures.

Organizational Structure

• Discuss your business’ organizational structure. One of the best ways to present this information is with an organizational chart.

• An organizational chart shows the hierarchy, or chain of command in your business. It lists key positions and subordinate positions under department heads, supervisors, and managers.

Principles and Practices of the Business

• Every business should have a published code of ethics and principals that govern how the company conducts its business.

• In this section, include both internal and external principals of operations.

Internal Operations Business Principles and Practices

• Businesses that are incorporated must have a board of directors.

• Do you offer services where clients need to be screened for eligibility for financial aid, social services, or are there other pre-requisite requirements such being a senior citizen, minority, or disabled?

• Do you have hiring and employee training and management practices in place?

• Do you have an overall corporate philosophy that inspires, encourages, or offers incentives to employees?

• Do you have an anti-discrimination policy in place?

External Business Practices and Principles

• Do you have a customer policy or philosophy? Examples of client/customer philosophies include:

• We do not serve clients; we team with clients to meet their goals.

• We value creativity and imagination and use these to our client’s advantage.

• Our employees maintain high ethical standards that reflect on how we treat our clients.

Professional Skills and Resumes

• A business’ strengths come from the talent, skills, and experience of those running the company.

• In this section, you give a brief overview of all founders, employees, and partners involved in the business that will be contributing their skills and input into how the business is operated.

• You should also include any board members, directors, and officers.

• Include in your list of principals (most important people in your business or organization), a brief overview of how their particular skills will serve the business.

• You can also include accomplishments that relate to the business.

• It is also beneficial to attach resumes for at least the top three principals listed.

Tips for Writing a Professional Conclusion

• When you write a document or prepare your own financial statements it may be easy for you to draw conclusions. But what you see may not always be obvious to your readers.

• Your conclusion should state facts and information that you need to make sure the reader understands. This is especially important when you are writing a comprehensive feasibility study because it has many parts that all need to be tied in together in a summarized conclusion.

• Remember that a feasibility study is just that, a study. Your conclusions need to be based on research, verifiable information, and not on a simple belief that your idea can work.

• A strong conclusion will:• Discuss how the business can succeed.

Explain why, using research-based information, not opinions, that is contained in your study.

• If your business idea takes a nontraditional approach to something, explain why this approach will help you succeed. For example, most restaurants do not survive beyond two years. What makes your idea different and more likely to succeed?

• Point the reader back to the location of any examples you give by listing section, page title and page number.

• Summarize the most important points you need to make. Do not attempt to cover minor or unimportant details.

• A good summary or conclusion should be concise, no longer than one to two pages and written in plain terms.

• Do not attempt to persuade the reader with jargon or an advertising pitch; feasibility study findings should be objective and based on research and information in the study.

• Avoid using phrases like “I believe,” or “in my opinion,” “I hope, “I anticipate.” Do use strong, impersonal phrases like “research supports that this industry will continue to grow.”

• A summarized conclusion helps to develop an overall impression, but should not replace the supporting documents. Be sure to submit the summary as part of the feasibility study, not as a substitute.

How to Assemble Your Feasibility Study

• How you present your final study is just as important as the information it contains. If you have a lot of material put it in a portfolio or binder. Finding information easily and quickly is important to busy lenders and investors, so include tabs (type them it at all possible) to indicate each component in your study.

• Cover letters should not be generic, but should be individualized depending upon who you are submitting the study to.

• Before you actually submit your study, have someone else proofread it for you to check for content and errors. Typographical errors will make your study appear rushed or unprofessional and if your descriptions and calculations do not make sense to the reader they are worthless.

• Although you write your conclusion last, it serves as a summary of all the detail in your study. You can place it at the end of your document (before any exhibits and attachments), but placing it first (after the table of contents) sets the tone and identifies key issues for the reader to be aware of even before they read the rest of the study.

Points to Remember

• A feasibility study is a process in which you look at an idea to see if it is “feasible,” that is, if and how it will work.

• A comprehensive feasibility study looks at the entire structure, needs, and operations of a business.

• A limited or project feasibility study looks at one specific task, program, idea, or problem.

• A feasibility study looks at both sides, considering pros and cons, and troubleshoots potential problems.

• A feasibility study is not a business plan, but serves as a foundation for developing your business plan.

• A market feasibility study is not a marketing plan, but studies markets and market potential, and can be used to support or develop a marketing plan.

• In addition to a business plan, an investor or lending institution may require you to submit a feasibility study before considering your request for capital.

References

• Ashton, Robert (2009), How to start your own business for Entrepreneurs, Pearson Education

• Covello, Joseph A., & Hazelgren, Brian (1995) The Complete Book of Business Plans (Small Business Sourcebooks) Sourcebooks, Inc.

• Ditablan, Eustaquio (2006), Feasibility Study Handbook, National Bookstore, Manila

• Thompson, A., (2003), Business Feasibility Studies, Dimensions of Business Viability, Perth, Best Entrepreneur

• Timmons, Jeffrey A., & Spinelli, Stephen (2006), New Venture Creation: Entrepreneurship for the 21st Century with Online Learning Center access card, McGraw-Hill/Irwin

Online Sources:

• www.feasibleproject.com • www.womenonbusiness.com• www.extension.iastate.edu• www.method123.com/feasibility-study.php• http://www.smalltownmarketing.com/feasibility.

html• www.websitemarketingplan.com/techniques/fe

asibility.htm

• www.wisegeek.com/what-is-a-feasibility-study.htm

• www.umanitoba.ca/afs/agric.../MRAC/feasibility.html

• www.projectsmart.co.uk/elements-of-a-good-feasibility-study.html

• www.cs.toronto.edu/~sme/CSC340F/slides/05-feasibility.pdf

• www.klariti.com/.../Feasibility-Study