PowerPoint Presentation

Section 5.1
 Pages 75-79
5.1
Feasibility Analysis:
Testing an Opportunity
What you’ll learn
 The
background of
entrepreneurs
 How to turn your idea into a
business concept
5.1
Feasibility Analysis:
Testing an Opportunity
What you’ll learn
 How
to test your concept in
the marketplace with a
feasibility study
 How to make a conception
grid
5.1
Feasibility Analysis:
Testing an Opportunity
Why it’s important
 Not
every idea can become a
good business.
 Ideas must be tested before
they are put into the
marketplace.
5.1
Feasibility Analysis:
Testing an Opportunity
Key Terms
business concept
feature
benefit
feasibility analysis
target customers
competitive grid
5.1
Feasibility Analysis:
Testing an Opportunity
Springboard
Generate ideas for an
after school delivery
service.
5.1
Feasibility Analysis:
Testing an Opportunity
I. DEVELOPING A BUSINESS
CONCEPT
A business concept is an idea for
a new business that can be
tested.
5.1
Feasibility Analysis:
Testing an Opportunity
II. THE BUSINESS
CONCEPT
A. To build a business
concept statement,
answer four questions.
5.1
Feasibility Analysis:
Testing an Opportunity
1. What is the product or
service being offered?
2. Who is the customer?
3. What is the benefit you are
providing?
4. How will you get the product
or service to the customer?
5.1
Feasibility Analysis:
Testing an Opportunity
B. A feature is a distinctive
aspect, quality, or
characteristic of a product
or service.
5.1
Feasibility Analysis:
Testing an Opportunity
C. A benefit is something that
promotes or enhances the
value of the product or
service to the customer.
5.1
Feasibility Analysis:
Testing an Opportunity
III. WRITE A CONCEPT
STATEMENT
Company X provides goods
and/or services to a specific
market. It provides these
benefits.
5.1
Feasibility Analysis:
Testing an Opportunity
IV. TESTING THE
CONCEPT IN MARKET
A feasibility analysis is used
to determine if a business
concept is practical. It
answers two questions.
5.1
Feasibility Analysis:
Testing an Opportunity
A. Are there customers who
want what you have to offer?
B. What conditions must be
present for you to go forward
with your business?
5.1
Feasibility Analysis:
Testing an Opportunity
V. TESTING PRODUCT OR
SERVICE
REQUIREMENTS
A. Information to gather
includes trends, barriers to
entry, and profit margins.
5.1
Feasibility Analysis:
Testing an Opportunity
B. Will the industry support
your new business?
5.1
Feasibility Analysis:
Testing an Opportunity
VI. TALKING TO
CUSTOMERS
Target customers are those
most likely to buy your
products and services.
5.1
Feasibility Analysis:
Testing an Opportunity
VII. STUDYING THE
COMPETITION
Create a competitive grid to
organize important
information about your
competition.
5.1
Feasibility Analysis:
Testing an Opportunity
Competitive Grid
5.1
Feasibility Analysis:
Testing an Opportunity
VIII. THE COMPETITIVE
GRID
A. The competition
B. Customers
C. Benefits
D. Distribution
E. Strength and weaknesses
5.1
Feasibility Analysis:
Testing an Opportunity
IX. LOOKING AT START
UP RESOURCES
NEEDED
How much money does it
take?
5.1
Feasibility Analysis:
Testing an Opportunity
A. Purchase or lease equipment
and a facility.
B. Pay employees.
C. Finish product development.
D. Carry the company’s
expenses until you have
enough sales for the business
to operate on its own.
5.1
Feasibility Analysis:
Testing an Opportunity
End of Section 5.1