How to conduct a
Feasibility Study - WORKSHEET
Primary resource: Phase 3: Fundamentals of a Feasibility Study, Cooperative Development Service, Manitoba, Canada at
http://www.gov.mb.ca/housing/coop/pdf/Phase3Fundamentals_Feasibility_Study.pdf
BASICS OUTLINE
Feasibility Study vs. Business Plan
The __________________ focuses on _________________________ to be completed if it is decided to go ahead
with the proposed business launch.
The _____________________, however, ____________________ several product or service _______________
and _______________________________________________.
Life Cycle of a Business covered by the Business Plan
1.
2.
3.
4.
___________________________
___________________________
___________________________
___________________________
Keys to Business Success
1.) A sound business model drives the business to:
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
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___________________________
___________________________
___________________________
___________________________
___________________________
___________________________
___________________________
Keys to Business Failures – Canadian statistics in document
http://www.forbes.com/sites/ericwagner/2013/09/12/five-reasons-8-out-of-10-businesses-fail/
Idea Assessment
S
=
___________________________
W =
___________________________
O =
___________________________
T
___________________________
=
The plan needs to show how the business will use its strengths, mitigate or backfill its ____________,
seize ___________________ and defuse or dodge _________________.
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Choosing a Strategic Position – think niche or uniqueness as well as market demand
Example:
Chevrolet
Ferrari
___________ cars
___________ cars
________________________ market
________________________ market
The strategy must bridge the gap between __________________________ and what the __________________.
Components of a Feasibility Study
MARKET FEASIBILITY - Market feasibility identifies whether the product or service ____________________
__________________________ of the industry or marketplace. The study needs to identify and assess individual
opportunities, and provide rationalization to proceed with that opportunity, or assess other alternatives. The
study needs to include the ____________________ and incorporate ________________ regarding the particular
service or product.
1 Industry Competitiveness – influenced by the following:
a.
b.
c.
d.
e.
f.
_____________ of businesses in the market
___________ of market growth
High _____________ costs
__________________ goods
Limited _________________ costs
Rates of __________ and _____________
2 Barriers to Entry –Six major barriers include:
a.
b.
c.
d.
_________________________________________
_________________________________________
_________________________________________
_________________________________________
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e. _________________________________________
f. _________________________________________
3 Analysis of major competitors – an essential component of the ___________________ strategy
assessing the strengths and weaknesses of __________________________ competitors in three ways:
1) ________, 2) __________________ existing competitors’ responses to new entrants, and 3) giving the
new business owners knowledge for building strategies to _________________ to competitor behaviors.
MARKET POTENTIAL – Can the market ____________ the new business entry in light of the _______________
______________ conditions?
What is marketing?
The _____________________________ defines marketing as “an ____________________________ and a set of
_________________ for creating, communicating, and delivering __________ customers and for ___________
_____________________________ in ways that benefit the organization and its stakeholders.
CUSTOMERS! CUSTOMERS! CUSTOMERS!
Are customers those who buy from your? ______ Are customers co-workers or partners? ______
Are customers those stockholders? ______
Marketing Plans – the _______ component of a business plan
Answers these questions for the planning year:
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__________ are our target buyers?
__________ sources of uniqueness or positioning in the market do we have?
__________ will we implement our marketing spending plans?
__________ will marketing spending plans occur?
__________ much sales, spending, and profits will we achieve?
The _________________________ contained in your business plan are based on the ______________ contained
in your marketing plan.
Market Research – the ________ between the business’s products or services and the consumer
Market research asks the following questions:
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Who are my customers and potential customers?
What kind of people are they?
Where do they live?
Can and will they buy?
Am I offering the kinds of goods or services they want at the best place, at the best time, and in the right
amounts?
Are my prices consistent with what buyers view as the product's value?
Are my promotional programs working?
What do customers think of my business?
How does my business compare with those of my competitors?
Market research focuses and organizes marketing information. It ensures that such information is timely and
permits businesses to:
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



Reduce ____________________
Spot __________ and ___________________________ in the current market
Identify sales __________
Develop plans of __________
Research Process – varies in degrees of complexity and frequency
Accurate information can be provided by following the following seven steps:
Step One:
Define Marketing Problems and Opportunities
Step Two:
Set Objectives, Budget, and Timetables
Step Three: Select Research Types, Methods, and Techniques
Step Four:
Design Research Instruments
Step Five:
Collect Data
Step Six:
Organize and Analyze the Data
Step Seven: Present and Use Market Research Findings
Marketing Concepts
1. Commodities and Differentiated Products
Commodities – the __________ regardless of who produces them (i.e. raw materials)
Differentiated Products – __________ per provider
2. Price Takers – those who produce ____________________ and must take what the market offers
on any given day.
3. Differentiated Products are __________ and cannot be substituted by any other competitor’s
product.
4. Price Makers – produce ____________________ products and therefore have some influence over
the __________, but only to the extent that the market will __________ it.
5. Perceptions Are Everything
__________ perception: Organic Milk is a different product that commodity milk and can therefore
____________________ when in actuality there is no difference between the products.
6. The Value Added Differentiated Fallacy
Differentiation only takes place when the product you produce ____________________ different.
So you need to ____________________ organic milk purchasers that your organic milk
____________________than that of your competitors. One way of doing this is to create a
__________ for your product (e.g. Johnson’s Better Organic Milk), and _______________________
to organic milk purchasers.
7. Target Marketing – is the practice of __________ the marketing effort at a specific market
__________.
8. What is Branding? – Branding is one of the most important factors influencing an item’s success of
failure in today’s marketplace. A brand is a combination of __________, __________, __________,
__________, __________ and __________. It __________ and ____________________ a product
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and/or its company from that of a competitor.
9. Niche Marketing – marketing to a __________ portion of a market that is __________________
____________ by the mainstream product or service providers.
10. Ethnic Marketing
What is ethnicity? It is a multidimensional ______________________________ that includes
__________, origin or __________, ____________________ and __________.
The Modules follow in the document on Page 19.
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