After setting up an objective it is imperative to conduct a feasibility study. Feasibility study is an important tool to analyze the effectiveness of a proposed business plan; it is a safeguard against the waste of investment or resources. The feasibility is conducted before the commencement of the new business plan or business expansion. Conducting a feasibility study to start up business online or to extend your business online is the one of the good decisions because you are analyzing its ability to ensure that you have taken the right decision at the right time. The feasibility study will assist you to know your strength and will also help you to analyze the possibilities of extending and marketing your business online.
What Factors should I consider to conduct a feasibility study?
The business feasibility study will identify the hurdles and the roadblocks in the proposed business concept and will also determine the effectiveness of business concept. The following are the factors one should consider in feasibility study.
Business Model Viability
Management Model Viability
The above are the important dimensions of the feasibility study. Based on these vulnerabilities one has to go further in making the right decision. All the above factors must prove feasible for the proposed business.
Business Feasibility Study Outline:
1. The Executive Summary – Prepare the executive summaries of who you are and what do you do? This is usually prepared at the end of the study but it is presented first.
2. Introduction: Here you have to introduce yourself and your company in detail. Your goals and objectives of why do you want to extend your business online. And where you would like to see yourself after a few years. This section will also include the vision and the mission of your company.
3. Product or Service: Here you have to tell about your product or service which you are going to market online and offline as well. Also tell your product mix if you have. OR if you are going to market others product and its popularity via online. Also describe how your customer will use this product what benefits you are going to deliver to them if you sell it through online. Who are you target customers etc.
4. Technology: Technology has already driven businesses to the horizon. Study about the existing technology. Analyze your technological strength and try to figure out what the existing technology is? If you are going to sell product or services through online or if you are going to order supply through online then find out the need what technical assistance is needed to suit your requirements.
5. Online Market Environment and Competition: Be clear about your target market (s). Try to find out who are your online customers and end users. Why should they buy product from you? What is the distribution system available through online market? How your product or service will benefit your end users. What is the market trend of your product or services? Who are your online competitors? How do they distribute the product through online? Do a rough study on the competition there is a separate section called WEB COMPETITIVE INTELLIGENCE, which will tell you more about online competition.
6. Business Model: Describe how your business will generate revenue
7. Marketing and Sales Strategy (Both Offline and Online): Layout the basic marketing plan. Differentiate your offline and online marketing plans or mix it up as a single marketing plan. Also list out what are the e-tools you are going to use to market your product through online. What is the online selling strategy you are going to adopt?
8. Production and Operation Requirements (not required if you are marketing merchants product): Describe the complexity of your production system. This study is not required if you are marketing merchants product / service.
9. Management and Personnel: list down your company staffs details and their role also list down who will be managing online operations and marketing etc
10. Critical Risk Factors: Try to study the risk you'll face in the entire business system if you extend your business online.
11. Financial Projections – this section will include Balance Sheet, Income Statement Projections, Cash-Flow, Break Even Analysis, and Capital Requirements. All the financial terms and expenses you had spent and also the ROI.
12. Findings and Recommendations of the study
Source by Idrees Ahmed