The document discusses the importance of conducting a feasibility study before starting a new business venture. A feasibility study evaluates the potential risks and chances of success for a proposed business idea. It involves analyzing the market, competition, financial requirements, operational processes and other factors to determine if the business idea is viable and worth pursuing through creating a full business plan. The feasibility study establishes the foundation for the business plan and helps decide whether to proceed with the new venture idea or not.

1. Feasibility Study

2. Entrepreneurship Process
• Identify and Opportunity – right time , first
mover, sense opportunity
• Establish Vision – dream for the future
• Persuade others –form the foundation team,
business plan
• Gather Resources – Financial, operating,
Human, Information and intangibles (image
procedures, transport, management).
• Create new venture product or market
• Change adapt with time

3. Feasibility Study
• Is the evaluation of the proposal designed
to determine the difficulty in carrying out a
designated task.
• Is the evaluation or analysis of the
potential impact of a proposed project.
• Will the idea work and should you proceed
with it ?

4. Feasibility Study
• Before writing business plan need to
• identify how ,where and to whom you intend to
sell a service or product
• assess competition
• figure out how much money is needed to start
a business and keep it running until established
• Determine if and how it can succeed and serves
to develop a business plan

5. Feasibility Study
• Is conducted during the deliberation phase of the project
development cycle prior to obtaining project financing
business process
• It is an analytical tool that includes several scenarios for
the decision maker of the group to utilise in determining
if they should continue the project
• If the would be entrepreneur decides to proceed further
then he /she makes a business plan
• Normally done independently by people outside the
project group
• Feasibility study is only at the developmental stage of
the project

6. Feasibility Study –Why Important
• Lists requirement of essentials to do to
make business work
• Identify logistical and other business
related problems and solutions
• Develop marketing strategies to convince
bankers and investors to ensure their
consideration
• Serves a foundation for business plan

7. Feasibility Analysis
• Done to check the feasibility of the project
itself in the particular environment on great
detail. More descriptive than
environmental appraisal.
• Market Analysis –estimate demand of
proposed product/service and target
market share.
• Technical/Operational Analysis –
operational ability of the project and cost
and availability of the technology-material
and plant parameters.

8. Feasibility Study
• Contains comprehensive ,detailed information
about your business structure,
• your products and services,
• the market,
• logistics of how you would deliver a product or
service,
• resources needed to make the business run
efficiently as well as
• other information about the business

9. Business plan
• Sets out objectives, estimates and financial
forecasts
• Helps establish where you are, where you are
going and how you intend to get there.
• Demonstrates determination to start a
successful business
• Only half the new businesses survive more than
five years – the better the planning is, the more
likely you are to succeed.
• Should be updated on an annual basis at least-
ongoing process – monitor and update.

10. Business plan
• Basic structure should follow a format
to facilitate an efficient way of meeting
evidence requirements like National
Vocational Qualification (NVQ) Level 3
Business Planning Qualification.

11. Business Plan
• Is a roadmap for starting and running a business.
• Is a blue print of the step by step procedure to be
followed to convert a business idea into a
successful business venture.
• Identifies an innovative idea, researches the
external environment for SWOT, assess the
feasibility of the idea and then allocates resources
in the best possible manner to make the plan
successful.

12. Business Plan
• Efficient method of focusing ideas in
terms of defining objectives and assessing
abilities to organise and run the business.
• Establishes parameters and specific
targets which provide a yardstick to
measure progress and profitability
• Prerequisite to both planning and starting
as well as running a business
• Good business plan necessary for raising
finance.