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Feasibility Studies and Business Planning for Shared Use Kitchens


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Feasibility Studies and Business Planning for Shared Use Kitchens

  1. 1. Margaret Horne, MBA, AVAGannon University Small BusinessDevelopment Center
  2. 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. 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. 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. 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. 6. Elements of a Feasibility Study Executive Summary Project Description Premise Target Market Demographics Methodology  Surveys, focus groups, research Conclusion - Findings and Recommendations
  7. 7. Premise Desire/Goal of Study  Establish a shared use kitchen  Establish a multi-use kitchen incubator  Establish a dairy product processing kitchen
  9. 9. Suppliers/Distributors/End Users Food producers Food distributors Restaurants Grocery stores Specialty food stores Caterers
  10. 10. Methodology PRIMARY DATA Focus Interviews Surveys Groups SECONDARY DATA Industry & Industry Government Trade Association Agency Publications Statistics Reports
  11. 11. Findings & Recommendations Does the data and research support the project? What issues need to be addressed before launch?
  12. 12. 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
  13. 13. Why Write a Plan? Create a Blueprint for Action Focus Management Team Obtain Financing Attract Investment Attract Key Stakeholders
  14. 14. Management/Operational Plan Suggested Requirements  Governance  Non-profit  Separate entity?  Board of Directors/Advisory Board  General Operations  Director/Manager  Board responsibilities  Organizational Structure
  15. 15. RFV BOARD OF DIRECTORS MUNNELL RUN FARMMarketing Policy/Personnel Business Penn Soil Client AdvisoryCommittee Committee Consultant RC&D Rep Committee RFV Director RFV Kitchen Manager RFV Clients
  16. 16.  Building/Land/Equipment  Rent/Build/Purchase  Multi-use/Dairy Services Provided  Incubator  Shared Use Kitchen
  17. 17.  Pricing  Per hour, equipment used, seasonal  Market based if incubator Scheduling  Director/manager responsibility  Staffing Facility Design  Equipment Needs Assessment  Layout of Kitchen
  18. 18.  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
  19. 19.  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
  20. 20. Margaret Horne, MBA, AVAGannon University Small BusinessDevelopment Center