2. What is a Feasibility Study
An analysis of the viability of an idea
through a disciplined and documented
process.
Helps answer “Should we proceed with
the proposed project idea? Is it a viable
business venture?”
3. Why do a feasibility study
Analyzes all issues and assesses probability of success
Gives focus to the project
Identifies reasons NOT to proceed
Identifies factors that could affect the project
Provides quality information for decision making
To secure funding
4. What Defines Feasibility
A feasible venture
will identify market demand/need/existence
will remain viable in the long-term
will meet the goals of the stakeholders
5. Levels of Feasibility Assessment
Three levels
Market Feasibility
“Who will use it? What is the market size?”
Operational Feasibility
“Who will manage? What structure is needed for
long-term viability?”
Economic Feasibility
“Can it be self-sustaining in a reasonable amount of
time? Will it generate adequate cash flow?”
6. Elements of a Feasibility Study
Executive Summary
Project Description
Premise
Target Market Demographics
Methodology
Surveys, focus groups, research
Conclusion - Findings and Recommendations
7. Premise
Desire/Goal of Study
Establish a shared use kitchen
Establish a multi-use kitchen incubator
Establish a dairy product processing kitchen
10. Methodology
PRIMARY
DATA
Focus
Interviews Surveys
Groups
SECONDARY
DATA
Industry & Industry Government
Trade Association Agency
Publications Statistics Reports
11.
12. Findings & Recommendations
Does the data and research support the project?
What issues need to be addressed before launch?
13.
14. What is a Business Plan?
Summarizes the plan of action
Provides operational guidelines
Outlines the actions needed to take the project from
idea to reality
Provides a road map for strategic planning
15. Why Write a Plan?
Create a Blueprint for Action
Focus Management Team
Obtain Financing
Attract Investment
Attract Key Stakeholders
16. Management/Operational Plan
Suggested Requirements
Governance
Non-profit
Separate entity?
Board of Directors/Advisory Board
General Operations
Director/Manager
Board responsibilities
Organizational Structure
17. RFV BOARD OF
DIRECTORS
MUNNELL RUN
FARM
Marketing Policy/Personnel Business Penn Soil Client Advisory
Committee Committee Consultant RC&D Rep Committee
RFV Director
RFV Kitchen
Manager
RFV Clients
19. Pricing
Per hour, equipment used, seasonal
Market based if incubator
Scheduling
Director/manager responsibility
Staffing
Facility Design
Equipment Needs Assessment
Layout of Kitchen
20.
21. Marketing
Target markets
Tenants
Non-tenant users
Suppliers/Distributors/End Users
Economic Development Agencies
Legislators
Community at large
Intake Process/Tenant
Management/Graduation/Non-tenant
Management
22. Startup Costs
Capital expenditures
Wages/salaries
Infrastructure development or improvements
Advertising and Promotion
Legal Fees
Municipal & State Development taxes
Financial Projections
Fixed costs
Variable based on best/worst case scenario
Self-sustaining in reasonable period of time
Funding