This document discusses feasibility studies and business plans. It explains that a feasibility study analyzes the viability of a business idea through a documented process and helps determine if a project should proceed. Key parts of a feasibility study include analyzing the market, operations, and financial viability. A business plan then builds on the feasibility study by providing an operational blueprint that outlines actions, management structure, marketing strategy, financial projections, and funding needs to implement the business idea.

1. Margaret Horne, MBA, AVA
Gannon University Small Business
Development Center

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

8. TARGET MARKET DEMOGRAPHICS

9. Suppliers/Distributors/End Users
 Food producers
 Food distributors
 Restaurants
 Grocery stores
 Specialty food stores
 Caterers

10. Methodology
PRIMARY
DATA
Focus
Interviews Surveys
Groups
SECONDARY
DATA
Industry & Industry Government
Trade Association Agency
Publications Statistics Reports

12. Findings & Recommendations
 Does the data and research support the project?
 What issues need to be addressed before launch?

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

18.  Building/Land/Equipment
 Rent/Build/Purchase
 Multi-use/Dairy
 Services Provided
 Incubator
 Shared Use Kitchen

19.  Pricing
 Per hour, equipment used, seasonal
 Market based if incubator
 Scheduling
 Director/manager responsibility
 Staffing
 Facility Design
 Equipment Needs Assessment
 Layout of Kitchen

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

24. Margaret Horne, MBA, AVA
Gannon University Small Business
Development Center