Beruflich Dokumente
Kultur Dokumente
Feasibility Analysis
The process of determining whether an entrepreneurs idea is a viable foundation for creating a successful business
Financial Feasibility
To determine how attractive an industry is overall as a home for a new business To identify possible niches a small business can occupy profitably
Suppliers
Buyers
Substitutes
Rivalry
Number of competitors is large or few (less than 5) Competitors are not similar in size or capability The industry is growing at a fast pace The opportunity to sell a differentiated product or service is present
Suppliers
Many suppliers sell a commodity product to the companies in it Substitute products are available for the items suppliers provide Companies in the industry find it eas to switch from one supplier to another The items suppliers provide account for a relatively small portion of the cost of finished products
Buyers
Switching costs to competitors is high Number of buyers is large Customers demand differentiated products Customers find it difficult to gather info on suppliers costs etc The items account for a relatively small portion of the customers finished products
New Entrants
Advantages of economic scale are not present Capital requirements to enter are low Cost advantages are not related to company size Buyers are brand-loyal Governments do not restrict entry
Substitute Products
Quality substitute products are not readily available Prices of substitute products are not lower Buyers cost of switching to substitute products is high
Are customers wiling to purchase our goods and services? Can we provide the product or service to our customers at a profit?
Research
Primary research Customer surveys and questionnaires Focus groups Secondary research Trade associations and business directories Direct mail lists Demographic data Census data Forecasts Market research Articles Local data WWW
Trials
Prototypes: an original, functional model of a new product that entrepreneurs can put into the hands of potential customers so they can see it, test it and use it In-home trials: a research technique that involves sending researchers into customers homes to observe them as they use the companys product or service
A Business Plan
A written summary of an entrepreneurs proposed business venture, its operational and financial details, its marketing opportunities and strategy, and its managers skills and abilities
3 Functions
Guides an entrepreneur Attracts lenders and investors Reality Test Competitive Test Value Test Represents/reflects its creator
Title Page and Contents Executive Summary Vision and Mission Statement Company History Business and Industry Profile Business Strategy Description of the Firms Product or Service Marketing Strategy Competitor Analysis Description of Management Team Plan of Operation Pro Forma Financial Statements The Loan or Investment Proposal
Executive Summary
The companys business model and basis for competitive edge The companys target markets and the benefits its product or service will provide The qualification of the founders and/or key employees The key financial highlights
Overview of industry or market segment Existing or anticipated profitability of the industry Companys general business goals Companys immediate objectives
Business Strategy
How to gain competitive edge How to achieve the goals and objectives Methods to satisfy KSFs of the industry
Overview of how customers will use it Any patents, trademarks or copyright Honest comparison with competition Feature (descriptive fact about a product or service) vs Benefit (what a customer gains from the product or service) Description of production process, strategic raw materials, sources, costs.
Marketing Strategy
Defining the target market Who? Where? How many? Why? Proving that a profitable market exists Showing customer interest Documenting market claims
Marketing Strategy
Competitor Analysis
Qualifications of those with at least 20% ownership Resumes How to avoid primary reasons for business failures
Plan of Operation
Monthly for 3 years by quarter 3 sets: pessimistic, most likely, optimistic Statement of assumptions