ENTREPRENEURSHIP ASSIGNMENT

ON
Feasibility Study on Input Requirement

SUBMITTED BY- SUBMITTED TO-

MD JEESHAN Ms. SHIPRA MAM
PGDM 2 B
ABS/PGDM/19/081
QUESTION- How feasibility analysis has to be conducted and what are the
important factors to be studied and considered before going for a business
startup.
Sol.  A feasibility study is simply an assessment of the practicality of a proposed plan or
method.

FEASIBILTY ANALYSIS SHOULD CONDUCTED BY FOLLOWING WAYS –

CONDUCT A PRELIMINARY ANALYSIS-

Begin by outlining your plan. You should focus on an unserved need, a market where the
demand is greater than the supply, and whether the product or service has a distinct
advantage. Then you need to determine if the hurdles are too high to clear (i.e. too expensive,
unable to effectively market, etc.).

PREPARE A PROJECTED INCOME STATEMENT-

This step requires you to work backwards. Start with what you expect the income from the
project to be and then what investment is needed to achieve that goal. This is the foundation
of an income statement. Things to take into account here include what services are required
and how much they’ll cost, any adjustments to revenues, such as reimbursements, etc.

CONDUCT A MARKET SURVEY-

This step is key to the success of your feasibility study, so make it as thorough as possible.
It’s so important that if your organization doesn’t have the resources to do a proper one, then
it is advantageous to hire an outside firm to do so. The market

Research is going to give you the clearest picture of the revenues you can realistically expect
from the project. Some things to consider are the geographic influence on the market,
demographics, analyzing competitors, value of market and what your share will be and if the
market it open to expansion (that is, response to your offer).

PLAN BUSINESS ORGANIZATION AND OPERATION-

Once the groundwork of the previous steps has been laid, it’s time to set up the organization
and operations of the planned business venture. This is not a superficial, broad stroke
endeavor. It should be thorough and include start-up costs, fixed investments and operation
costs. These costs address things such as equipment, merchandising methods, real estate,
personnel, supply availability, overhead, etc.

PREPARE AN OPENING DAY BALANCE SHEET-

This includes an estimate of the assets and liabilities, one that should be as accurate as
possible. To do this, create a list that includes item, source, cost and available financing.
Liabilities to consider are such things as leasing or purchasing of land, buildings and
equipment, financing for assets and accounts receivables.
REVIEW AND ANALYZE ALL DATA -

All these steps are important, but the review and analysis are especially important to make
sure that everything is as it should be and nothing requires changing or tweaking. So, take a
moment to look over your work one last time. Reexamine your previous steps, such as the
income statement, and compare it with your expenses and liabilities. Is it still realistic? This
is also the time to think about risk, analyzing and managing, and come up with
any contingency plans.

MAKE A GO OR NO GO DECISION-

You’re now at the point to make a decision about whether the project is feasible or not. That
sounds simple, but all the previous steps we’re leading to this decision-making moment. A
couple of other things to consider before making that binary choice is whether the
commitment is worth the time, effort and money and is it aligned with the organization’s
strategic goals and long-term aspirations.

IMPORTANT FACTORS TO BE STUDIED AND CONSIDERED BEFORE GOING

FOR A BUSINESS STARTUP-

NATURE OF THE BUSINESS-

1. Service
2. Merchandising
3. Manufacturing

TARGET CUSTOMER-
Having a service or a product to sell is not going to make you profitable if you do not have
customer who will buy it. It is very important to know about market before producing and
selling any product.

LOCATION-

Location is very important factor for a new business. The business must be seen by the target
customer or at least near them.

FORMATION

1. Single proprietorship- Sole owner of the business.

2. Partnership- Divide the business between two or more persons.
3. Corporation- Divide the business with another person which call you stockholder, at
least 5 persons needed to form a corporation.

CAPITAL-

Capital is amount of money we needed to put in the new business to get it started and
operating. It can be cash or noncash,

ASSET REQUIREMENT-

Before starting a new business we need to plan the asset that we will need to operate. This
may include computer, furniture, machines, vehicle, land etc.

MARKETING-

Rarely a business sell without a good marketing plan. Marketing is one of the key factors
why business succeeds and why it fail .we have to choose the right marketing platform, for
the business.
SUPPLIER-

Identify the potential supplier needed to produce the service or goods we will sell .consider
their price, location, reliability, and operating hours.

ACCOUNTING & FINANCIAL ANALYSIS-

When we start a new business, we must have reliable accounting and financial reporting
process in place. As accounting is the language of the business. We must have a reliable
accounting financial reporting system.