Lecture 1
Definition of Business Feasibility Study
Fanny Widadie, S.P, M.Agr
Education & Training
A person who
graduated,
yesterday and stops
studying today is
uneducated
tomorrow."
• "
Fear & Wisdom
•"To conquer
fear is the
beginning of
wisdom."
• (Bertrand Russell)
Feasibility Analysis: Testing an
Opportunity
5.1
• Discuss the importance of defining a
prospective business by writing a clear and
concise business concept.
• Describe how a feasibility study can be used to
test a concept in the marketplace.
Feasibility Analysis: Testing an
Opportunity
5.1
Business concepts need to be tested in the
market.
Once a concept is judged feasible, a business plan
will help the entrepreneur develop a strategy for
executing the concept.
01
MATERIAL
Studying mechanism
 Rule and studying discipline
 Definition and activity process
 Understanding “Business Feasibility Study”
 The importance of investing
 The reason studying Business Feasibility
01
 Understanding Business Feasibility Study
 Investment understanding
Based on William F. Sharfe, investment is about
sacrificing money now for the money in the
future.
 Kinds of investment :
1. real investment
2. financial investment
01
 Project understanding
Generally Project is a kind of activity which involves many
resources that are available within a particular bucket
(organization) in a particular period of time to do an activity
that has been assigned before or to achieve a particular
goal.
01
 Project’s activities include :
1. Building of new facilities
2. Repairment of current facilities
3. Research and development
 How do projects appear :
1. A market demand
2. To increase a product’s quality
3. Government’s activity
01
 Business Understanding
Is an activity or effort that had been done to get benefit based
on a purpose and the target business that was done in order to
achieve profit according to the goal and the target aimed in
many aspects, whether it be quantity or time.
 Profit is the main reason within a business, whether it be short
term or long term.
Developing a Business Concept
Once you have a idea for
a new business, define it
by writing a clear and
concise business concept.
Section 5.1 Feasibility Analysis: Testing an Opportunity
business concept
a clear and concise
description of a business
opportunity; it contains
four elements: the
product or service, the
customer, the benefit,
and the distribution
01
 Understanding Business Feasibility
Study
 An thorough study of an activity or a
business that would be undertaken, it is done
so in order to decide whether the business is
feasible or not to be undertaken.
01
 Factors That Causes Failure in
Business
 Data and information that are not sufficient
 Not thorough
 Miscalculation
 Wrong direction of work
 Environment condition
 Element of deliberateness
01
 Preventing Business Failure
Fulfilling and also the accuracy of data and
information taken
Specialist workers that are used are reliable and good
Selecting the right methods and measuring tool.
Loyalty from the Business Feasibility Study team
01
 Business Benefits
Achieving profits
 Providing employment
 Providing facilities
 Opening geographic isolation
 Increasing unity and helping the solidity of
development
01
 Economy Benefits
 Increasing amount of goods and services
 Increasing the product’s quality
 Increase in devisa
 Saving in devisa
01
 The Reason Studying
Business Feasibility
1. Avoiding non-profitable risks
2. Makes planning easier
3. Makes initiating work easier
4. Makes watching over staff easier
5. Makes controlling easier
01
 Organizations that needs Business
Feasibility Study
1. Business owners
2. Creditor
3. Government
4. The citizen
5. Management
01
 Aspects in Evaluation
1. Law aspect
2. Market and marketing aspect
3. Financial aspect
4. Technic/Operation aspect
5. Management/Organization aspect
6. Sosial economics aspect
7. Environmental issue aspect
01
 Evaluation aspect schemes
Law Aspects
Market & Marketing aspects
Financial Aspects
Feasibility
Study
Aspect
Operation/Technical aspect
Management aspect
Social/Economic aspects
Enviro aspects
Result
01
 Steps in Business Feasibility Study
1. Acquiring Data and Information
2. Data Processing
3. Data analysing
4. Decision making
5. Reccomendation
01
 Steps of Business Feasibility
Study Scheme
Acquiring Data
Processing
Data Analysing
Decission Making
feasible
Recomended
Under Taken
not feasible
Abborted
01
 Data & Information Resources
1. Economic and business publication taken from newspaper and magazine
2. Indonesia bank publication, Unity of private national banks (PERBANAS) and
other financial organizations
3. Badan Koordinasi Penanaman Modal (BKPM), Badan Pengelola Pasar Modal
(Bapepam)
4. Biro Pusat Statistik (BPS)
5. Asosiasi Industri dan dagang yang membawahi jenis usaha yang sejenis
6. Lembaga-lembaga penelitian seperti LIPI ataupun swasta
7. Departemen Teknis. (mis: jika usaha pertanian maka dari Departemen Pertanian)
8. Universities dan TAFEs
9. Other official resources
Thank You….
See you on lecture number
02
Worksheet
1. Make Idea of Business in Agribusiness
field and explain how the steps of
feasibility analysis
2. Please write succincly the goal of each
aspect in feasibility study outline
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